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Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix) 3-1 Chapter 03 Demand, Supply, and Market Equilibrium (+ Appendix) Multiple Choice Questions 1. When economists describe "a market," they mean: A. A place where stocks and bonds are traded B. A communication network that allows individuals to keep in touch with each other C. A hypothetical place where the production of goods and services takes place D. A system that allows buyers and sellers to interact with one another AACSB: Analytic Bloom's: Level 1 Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe demand and explain how it can change. Topic: Markets 2. All markets involve the following elements, except: A. Demand B. Government C. Price D. Supply AACSB: Analytic Bloom's: Level 1 Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe demand and explain how it can change. Topic: Markets Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix) 3-2 3. In the labor markets, A. Job applicants are the "buyers" while employers are the "sellers" B. Job applicants are the "sellers" while employers are the "buyers" C. Job applicants and employers are both "sellers" D. Job applicants and employers are both "buyers" AACSB: Analytic Bloom's: Level 2 Understand Difficulty: 1 Easy Learning Objective: 03-01 Describe demand and explain how it can change. Topic: Markets 4. A market demand schedule for a product would indicate that: A. As the product's price falls, consumers buy less of the product B. As buyers' incomes rise, they will buy more of the product C. If buyers demand more of the product, then its price would rise D. There is an inverse relationship between price and quantity demanded AACSB: Analytic Bloom's: Level 1 Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe demand and explain how it can change. Topic: Demand 5. When one speaks of "demand" in a particular market, this refers to: A. The whole demand curve B. One point on the demand curve C. One price-quantity combination on the demand schedule D. How much of an item buyers want to buy at a given price AACSB: Analytic Bloom's: Level 1 Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe demand and explain how it can change. Topic: Demand Chapter 03 - Demand, Supply, and Market Equilibrium (+ Appendix) 3-3 6. Other things being equal, the law of demand suggests that as: A. The demand for 3-D TVs increases, the price will decrease B. Income increases, the quantity of 3-D TVs demanded will increase C. The price of 3-D TVs decreases, the quantity demanded will increase D. The price of 3-D TVs decreases, the quantity demanded will decrease AACSB: Analytic Bloom's: Level 2 Understand Difficulty: 2 Medium Learning Objective: 03-01 Describe demand and explain how it can change. ... View Full Document

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