61.When there is a shortage in a market, prices are likely to:
A. Fall because buyers do not wish to buy as much as sellers want to sell.
B. Rise because some buyers will offer to pay a higher price.
C. Fall because sellers are likely to reduce their production if prices rise.
D. Rise because the government will put a price ceiling in place.
62.If a market shortage exists:
A. The invisible hand will work to reduce the price.
B. The only solution is for the government to raise the price.
C. Producers will compete for customers by reducing prices.
D. Consumers will compete for the product by offering to pay more.
63.A market surplus occurs when:
A. People cannot buy the amount of goods and services that they are willing and able to buy.
B. The price is less than the equilibrium price.
C. The quantity supplied exceeds the quantity demanded at a given price.
D. There is a price ceiling.
64.When there is a surplus in a market, prices are likely to fall because:
A. Buyers do not wish to buy as much as sellers want to sell.
B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.
C. Sellers are likely to increase their production.
D. Buyers will wait for the government to establish a price floor.
65.If a market surplus exists:
A. The only resolution is for the government to set the price.
B. Consumers will compete for the product buy offering to pay more.
C. Producers will compete for customers by reducing prices.
D. The equilibrium price is equal to the price ceiling.
66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:
A. To rise and quantity to fall.
B. And quantity both to rise.
C. To fall and quantity to rise.
D. And quantity both to fall.
67.If demand is constant, a leftward shift in the supply curve will result in:
A. A decrease in equilibrium quantity and a lower equilibrium price.
B. An increase in equilibrium quantity and a lower equilibrium price.
C. A decrease in equilibrium quantity and a higher equilibrium price.
D. An increase in equilibrium quantity and a higher equilibrium price.
68.The price of chocolate candy bars rises. This could be due to:
A. A decrease in the wage rate paid to workers in the candy bar factories.
B. A decrease in the cost of chocolate, which is used to produce candy bars.
C. A subsidy by the federal government for the producers of chocolate candy bars.
D. A decrease in the number of chocolate candy bar producers.
69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:
A. A decrease in equilibrium quantity and a higher equilibrium price.
B. An increase in equilibrium quantity and a higher equilibrium price.
C. An increase in equilibrium quantity and a lower equilibrium price.
D. A decrease in equilibrium quantity and a lower equilibrium price.
70.Which of the following would cause a decrease in the price of automobiles?
A. A technological advance in automobile manufacturing.
B. An increase in the wages paid to automobile assembly line workers.
C. A decrease in the cost of gasoline.
D. An increase in the number of buyers.
