AP Macro Problem Set

A market is defined as

• a physical place where people buy only goods

• a physical place where people buy both goods and services

• a store where people buy physical goods

• an arrangement that brings buyers and sellers together

• a place where one good is bartered for another

The "law of demand" refers to the fact that, other things remaining the same, when the price of a good rises,

• the demand curve shifts rightward

• the demand curve shifts leftward

• there is a movement down along the demand curve to a larger quantity demanded

• there is a movement up along the demand curve to a smaller quantity demanded

• the demand curve shifts rightward and there is a movement along the demand curve to a smaller quantity demanded

Gasoline prices increase by 50% and other things remain the same. As a result, there is

• an increase in the demand for gasoline

• a decrease in the demand for gasoline

• no change in the quantity of gas demanded

• a decrease in the quantity of gasoline demanded

A demand schedule shows

• the quantities that people plan to buy in all possible circumstances

• the quantities that people plan to buy at each different price when all other influences on buying plans remain the same

• the quantities that people would plan to buy if they could afford them at each different price when all other influences on buying plans remain the same

• the quantities that people plan to buy at each different income when all other influences on buying plans remain the same

• the quantities that people plan to buy at each different price as long as producers are willing to supply that quantity

changes in which of the following factors DO NOT shift the demand curve?

• the price of a good

• buyers' incomes

• the price of a substitute of a good

• the number of buyers

• the price expected in the future

The law of demand states that the relationship between price and quantity demanded is

• direct

• unclear

• negative

• positive

Which of the following goods would increase demand for a normal good? A decrease in

• consumer taste for a good

• the price of a substitute

• the price of a complement

• income

A decrease in the price of butter would most likely decrease the demand for

• margarine

• jelly

• milk

• syrup

• eggs

Which of the following will occur if consumers expect the price of a good to fall in the coming months?

• the quantity demanded will rise today

• the quantity demanded will remain the same today

• no change will occur today

• demand will increase today

• demand will decrease today

Which of the following will increase the demand for disposable diapers?

• a decrease in the price of disposable diapers

• a new "baby boom"

• a move toward earlier potty training of children

• a decrease in the price of cloth diapers