Econ 302 Chap 5 (quiz)
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Econ 302 Chap 5 (quiz)

Course: ECON 302, Summer 2010

School: Cosumnes River College

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Econ 302 Chap 5 Created: 9:55:11 PM CST Choose the most correct answer for each question. Each question is worth 1/2 point. 1. In the fall of 2004 the price of tomatoes dramatically increased. Which of the following could have caused this change? A. Hurricanes during the late summer damaged the Florida crop, shifting supply left. B. A reduction in tariffs of tomatoes from Central American, shifting supply...

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302 Econ Chap 5 Created: 9:55:11 PM CST Choose the most correct answer for each question. Each question is worth 1/2 point. 1. In the fall of 2004 the price of tomatoes dramatically increased. Which of the following could have caused this change? A. Hurricanes during the late summer damaged the Florida crop, shifting supply left. B. A reduction in tariffs of tomatoes from Central American, shifting supply right. C. A news report stating that a pesticide used on tomatoes might cause cancer, shifting the demand to the right. D. Advertising for catsup increased demand for catsup, shifting the demand curve to the left. 2. The Independent reported in 2004 that "Online music stores such as Apple's iTunes were seen as a revolution in music sales, with customers turning their backs on CDs to shop online" Based on this report, you can conclude that the introduction of online music stores has shifted: A. the supply curve of CDs to the right. B. the supply curve of CDs to the left. C. the demand curve of CDs to the right. D. the demand curve of CDs to the left. 3. At a Chicago Bulls game 20,000 tickets were sold at $30 apiece. The game was sold out and some people did not get tickets. This suggests that the selling price: A. was at equilibrium. B. was below equilibrium. C. was above equilibrium. D. could not have been any higher. 4. Refer to the graphs above. A recent report indicates that the device known as the right heart catheter used to diagnose heart conditions poses more risks than previously thought. The effect of the report on the market for right heart catheters is best shown by which of the graphs above? A. I B. I I C. II I D. IV 5. Honus Wagner, a major league baseball player from 1897 to 1917 and one of the first five men inducted into the Baseball Hall of fame, had his baseball card pulled from cigarette packs because he wasn't being paid for their distribution. What best describes the effect of his action on the market for his baseball card? A. Supply shifted to the left, price rose, and quantity demanded fell B. Supply shifted to the left, price rose, and demand shifted the to left. C. Demand shifted to the left, price fell, and quantity supplied fell. D. Demand shifted to the left, price fell, and supply fell. 6. Suppose the equilibrium price of oranges is $0.79, but government takes steps to prevent the price from exceeding $0.60. The likely result will be a: A. lower equilibrium price for oranges as the supply curve for oranges shifts to the right. B. higher equilibrium price for oranges as the demand curve for oranges shifts to the right. C. shortage of oranges as the price ceiling keeps the market from reaching equilibrium. D. surplus of oranges as the price ceiling keeps the market from reaching equilibrium. 7. The most likely impact of an effective price floor is: A. the supply curve will shift to the right. B. the demand curve will shift to the left. C. a surplus will develop. D. a shortage will develop. 8. Refer to the graph above. Without government intervention, market forces would result in: A. 800 labor hours demanded, 800 labor hours supplied, and a wage rate of $4.60 per hour. B. 500 labor hours demanded, 900 labor hours supplied, and a wage rate of $5.15 per hour. C. 1200 labor hours demanded, 500 labor hours supplied, and a wage rate of $3.50 per hour. D. 500 labor hours demanded, 500 labor hours supplied, and a wage rate of $5.15 per hour. 9. A higher equilibrium price with no change in market equilibrium quantity could be caused by: A. supply shifting in and no change in demand. B. supply and demand both increasing. C. a decrease in supply and an increase in demand. D. demand and supply both shifting in. 10. Suppose a recent and widely circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make bikes falls. What is the likely effect on the equilibrium price and quantity of exercise bikes sold? A. Price of exercise bikes decreases and quantity sold remains the same. B. Price of exercise bikes increases and quantity sold also increases. C. Price of exercise bikes remains the same and quantity sold increases. D. The change in price is ambiguous, but the quantity sold increases.
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