MBA 701 EXAM QUESTIONS WITH
VERIFIED ANSWERS
If the price of a good or service exceeds the equilibrium price, a _____ exists. As a result,
price tends to _____. - ANSWER surplus;fall
What type of price control will the government impose if it considers the equilibrium
price to be too high? - ANSWER Price Celing
Other things remaining constant, when demand for a good or service increases, which
of the following occur(s)?
-Equilibrium quantity is unchanged
-Equilibrium price increases
-Equilibrium price decreases
-Equilibrium quantity increases - ANSWER Equilibrium price increases
Equilibrium quantity increases
True or false: When a price floor applies to a product, rather than labor, the deadweight
loss will always be less. - ANSWER False
Which of the following occur(s) when the supply of a good or service decreases and
demand remains the same?
Multiple select question.
-Equilibrium quantity increases
-Equilibrium quantity decreases
-Equilibrium price increases
-Equilibrium price decreases - ANSWER Equilibrium quantity decreases
Equilibrium price increases
Comparative static analysis assumes which of the following?
-Goods are allocated by quantity
-No price floors
-Goods are allocated by price
,-No price ceilings - ANSWER No price floors
Goods are allocated by price
No price ceilings
If the price of a good or service is less than the equilibrium price, a _____ exists. As a
result, the price tends to _____. - ANSWER shortage; rise
Determine the effect in the market for chicken if the federal government subsidizes
chicken production and, at the same time, the price of pork, a substitute, decreases. -
ANSWER Equilibrium price decreases.
The effect on equilibrium quantity is uncertain.
Other things remaining constant, when demand for a good or service decreases, which
of the following occur(s)?
Equilibrium quantity decreases
Equilibrium price decreases
Equilibrium price is unchanged
Equilibrium quantity increases - ANSWER Equilibrium quantity decreases
Equilibrium price decreases
Which of the following occur(s) when the supply of a good or service increases but the
demand remains the same?
Multiple select question.
Equilibrium price increases
Equilibrium quantity increases
Equilibrium quantity decreases
Equilibrium price decreases - ANSWER Equilibrium quantity increases
Equilibrium price decreases
What type of analysis studies the movement from one equilibrium to another? - ANSWER
Comparative static analysis
Other things remaining constant, when demand for a good or service increases, which
of the following occur(s)?
Multiple select question.
Equilibrium price increases
, Equilibrium quantity is unchanged
Equilibrium price decreases
Equilibrium quantity increases - ANSWER Equilibrium price increases
Equilibrium quantity increases
Suppose there is an increase in the price of pork. If chicken is a substitute for pork,
what can producers and consumers of chicken expect to see in the market for chicken?
Multiple select question.
An increase in the price of chicken
A decrease in the quantity of chicken purchased
A decrease in the price of chicken
An increase in the quantity of chicken purchased - ANSWER An increase in the price of
chicken
An increase in the quantity of chicken purchased
When a price floor is applied to a product and the government buys and discards the
resulting surplus, the deadweight loss from the price floor _________. - ANSWER
becomes larger
Determine the effect in the market for chicken if the federal government subsidizes
chicken production and, at the same time, the price of pork, a substitute, decreases.
Multiple select question.
The effect on equilibrium quantity is uncertain.
Equilibrium price increases.
The effect on equilibrium price is uncertain.
Equilibrium price decreases. - ANSWER The effect on equilibrium quantity is uncertain.
Equilibrium price decreases.
Other things remaining constant, when demand for a good or service decreases, which
of the following occur(s)?
Equilibrium quantity decreases
Equilibrium price decreases
Equilibrium quantity increases
VERIFIED ANSWERS
If the price of a good or service exceeds the equilibrium price, a _____ exists. As a result,
price tends to _____. - ANSWER surplus;fall
What type of price control will the government impose if it considers the equilibrium
price to be too high? - ANSWER Price Celing
Other things remaining constant, when demand for a good or service increases, which
of the following occur(s)?
-Equilibrium quantity is unchanged
-Equilibrium price increases
-Equilibrium price decreases
-Equilibrium quantity increases - ANSWER Equilibrium price increases
Equilibrium quantity increases
True or false: When a price floor applies to a product, rather than labor, the deadweight
loss will always be less. - ANSWER False
Which of the following occur(s) when the supply of a good or service decreases and
demand remains the same?
Multiple select question.
-Equilibrium quantity increases
-Equilibrium quantity decreases
-Equilibrium price increases
-Equilibrium price decreases - ANSWER Equilibrium quantity decreases
Equilibrium price increases
Comparative static analysis assumes which of the following?
-Goods are allocated by quantity
-No price floors
-Goods are allocated by price
,-No price ceilings - ANSWER No price floors
Goods are allocated by price
No price ceilings
If the price of a good or service is less than the equilibrium price, a _____ exists. As a
result, the price tends to _____. - ANSWER shortage; rise
Determine the effect in the market for chicken if the federal government subsidizes
chicken production and, at the same time, the price of pork, a substitute, decreases. -
ANSWER Equilibrium price decreases.
The effect on equilibrium quantity is uncertain.
Other things remaining constant, when demand for a good or service decreases, which
of the following occur(s)?
Equilibrium quantity decreases
Equilibrium price decreases
Equilibrium price is unchanged
Equilibrium quantity increases - ANSWER Equilibrium quantity decreases
Equilibrium price decreases
Which of the following occur(s) when the supply of a good or service increases but the
demand remains the same?
Multiple select question.
Equilibrium price increases
Equilibrium quantity increases
Equilibrium quantity decreases
Equilibrium price decreases - ANSWER Equilibrium quantity increases
Equilibrium price decreases
What type of analysis studies the movement from one equilibrium to another? - ANSWER
Comparative static analysis
Other things remaining constant, when demand for a good or service increases, which
of the following occur(s)?
Multiple select question.
Equilibrium price increases
, Equilibrium quantity is unchanged
Equilibrium price decreases
Equilibrium quantity increases - ANSWER Equilibrium price increases
Equilibrium quantity increases
Suppose there is an increase in the price of pork. If chicken is a substitute for pork,
what can producers and consumers of chicken expect to see in the market for chicken?
Multiple select question.
An increase in the price of chicken
A decrease in the quantity of chicken purchased
A decrease in the price of chicken
An increase in the quantity of chicken purchased - ANSWER An increase in the price of
chicken
An increase in the quantity of chicken purchased
When a price floor is applied to a product and the government buys and discards the
resulting surplus, the deadweight loss from the price floor _________. - ANSWER
becomes larger
Determine the effect in the market for chicken if the federal government subsidizes
chicken production and, at the same time, the price of pork, a substitute, decreases.
Multiple select question.
The effect on equilibrium quantity is uncertain.
Equilibrium price increases.
The effect on equilibrium price is uncertain.
Equilibrium price decreases. - ANSWER The effect on equilibrium quantity is uncertain.
Equilibrium price decreases.
Other things remaining constant, when demand for a good or service decreases, which
of the following occur(s)?
Equilibrium quantity decreases
Equilibrium price decreases
Equilibrium quantity increases
