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14) Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a
potato-like vegetable.)
A) an increase in the price of a rutabaga
B) an exceptionally cold summer that killed much of the rutabaga crop
C) a fall in the price of fertilizer used to grow rutabagas
D) Both answers A and C shift the supply curve of rutabagas rightward.
E) Both answers A and B shift the supply curve of rutabagas rightward.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
15) Mulch is shredded wood and is a by-product in the production of lumber. Because these
two goods are produced together, they are
A) complements in production.
B) substitutes in production.
C) inputs into the same production process.
D) not related.
E) normal goods in production.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
16) A decrease in the price of a complement in production leads to
A) a decrease in the supply of the good in question.
B) an increase in the supply of the good in question.
C) no change in the supply of the good in question.
D) a decrease in the quantity supplied of the good in question.
E) an increase in the supply of the good in question and a decrease in the quantity supplied
of the good in question.
Skill: Level 1: Deinition
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
41
17) Milk can be used to produce cheese or butter. If the price of a pound of butter rises,
what happens to the supply of cheese?
A) The supply of cheese increases.
B) The supply of cheese decreases.
C) The supply of cheese stays the same and there is no change in the quantity supplied of
cheese.
D) The supply of cheese stays the same and there is a decrease in the quantity supplied of
cheese.
E) The supply of cheese could increase, decrease, or stay the same depending on what
happens to the supply of butter.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
18) Oil reiners can reine a barrel of petroleum so that it yields either more home heating
oil or more diesel fuel. If the price of diesel fuel falls, there is
A) an increase in the supply of home heating oil.
B) a decrease in the supply of home heating oil.
C) an increase in the quantity of home heating oil supplied.
D) a decrease in the quantity of home heating oil supplied.
E) an increase in the demand for home heating oil.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
19) Which of the following increases the supply of gasoline?
A) a situation where the quantity of gasoline demanded exceeds the quantity supplied
B) an increase in the price of gasoline
C) a decrease in the price of a resource used to produce gasoline, such as crude oil
D) a decrease in the demand for gas-guzzling, sport utility vehicles
E) an increase in income if gas-guzzling, sport utility vehicles are a normal good
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
42
20) The United Auto Workers bargained for higher wages and more beneits for
autoworkers. As a result of the higher wages and increased beneits,
i. the quantity of new automobiles supplied decreases.
ii. the supply of new automobiles decreases.
iii. the supply of new automobiles increases.
A) only i
B) only ii
C) only iii
D) both i and ii
E) Neither i, ii, nor iii is correct.
Skill: Level 4: Applying models
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
21) If the automobile workers' union successfully negotiates a wage increase for its
members, how does the wage hike afect the supply of automobiles?
A) The supply increases.
B) The supply decreases.
C) The quantity supplied increases.
D) The quantity supplied decreases.
E) Both answers B and D are correct.
Skill: Level 4: Applying models
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
22) Plywood is used in the construction of houses. If the price of plywood rises, what
happens to the supply of houses?
A) The supply increases so that the supply curve shifts rightward.
B) The supply decreases so that the supply curve shifts leftward.
C) The quantity supplied increases but there is no shift in the supply curve.
D) The quantity supplied decreases but there is no shift in the supply curve.
E) The quantity supplied decreases and the supply curve shifts leftward.
Skill: Level 4: Applying models
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
43
23) It is expected that the price of a bushel of wheat will increase in one month. This belief
will result in
A) an increase in the current supply of wheat.
B) a decrease in the current supply of wheat.
C) a decrease in the future supply of wheat.
D) no change in the current or future supply of wheat.
E) an increase in the current quantity supplied of wheat.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
24) If aluminum producers expect aluminum prices to fall in the future, this belief shifts the
current ________ curve for aluminum to the ________.
A) demand; right
B) demand; left
C) supply; right
D) supply; left
E) None of the above is correct.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: New
AACSB: Relective thinking
25) If the number of companies producing memory chips increases, then the
A) supply of memory chips does not change.
B) supply of memory chips increases.
C) supply of memory chips decreases.
D) quantity of memory chips supplied increases.
E) demand for memory chips increases.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
44
26) An increase in the number of fast-food restaurants
A) raises the price of fast-food meals.
B) increases the demand for fast-food meals.
C) increases the supply of fast-food meals.
D) increases the demand for substitutes for fast-food meals.
E) increases both the demand and supply of fast-food meals.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
27) An increase in the number of pineapple growers results in
A) an increase in the quantity of pineapples supplied and no shift in the supply curve of
pineapples.
B) an increase in the supply of pineapples and a rightward shift in the supply curve of
pineapples.
C) an increase in the supply of pineapples and a leftward shift in the supply curve of
pineapples.
D) no change in the supply of pineapples and a movement along the supply curve of
pineapples.
E) None of the above answers is correct.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
28) If the number of sellers decreases, then the supply curve ________ and the supply
________.
A) shifts rightward; increases
B) shifts rightward; decreases
C) shifts leftward; increases
D) shifts leftward; decreases
E) does not shift; does not change, but there is a decrease in the quantity supplied
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
45
29) Which of the following results in an increase in the supply of a good or service?
A) a fall in the price of the good or service
B) a smaller number of sellers producing the good or service
C) an increase in foreign imports of the good or service
D) higher taxes imposed upon producers of the good or service
E) a rise in the price of the good or service
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
30) Researchers have found a hybrid of corn that is cheaper to grow. This technological
breakthrough
A) increases the demand for corn.
B) increases the supply of corn.
C) decreases the supply of corn.
D) Both answers A and C are correct.
E) Both answers A and B are correct.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
31) Suppose over the next several years the productivity of irms producing electric cars
improves dramatically. The advance in productivity leads to
A) a decrease in the supply of electric cars so that the supply curve shifts leftward.
B) a decrease in the supply of electric cars so that the supply curve shifts rightward.
C) an increase in the supply of electric cars so that the supply curve shifts leftward.
D) an increase in the supply electric cars so that the supply curve shifts rightward.
E) no change in the supply of electric cars, only a change in the quantity supplied of
electric cars.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
46
32) Which of the following increases the supply of a good and shifts its supply curve
rightward?
A) a smaller number of producers
B) a higher wage paid to workers in the industry
C) a technological advance in how the good is produced
D) an increase in the cost of the resources used to produce the good
E) an increase in the price of the good
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
33) Which of the following increases the supply of a good?
A) There is a decrease in the price of a complement in production.
B) Producers expect higher prices for the good in the future.
C) Productivity improves.
D) Prices of inputs used to produce the good rise.
E) The number of producers decreases.
Skill: Level 2: Using deinitions
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
34) Advances in productivity increase supply because they might
A) increase the price expected in the future.
B) decrease the number of goods available.
C) decrease the cost of production.
D) raise the prices of resources used to produce the good.
E) increase the number of irms producing the good.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Relective thinking
47
35) The number of corn producers increases, so the supply of corn ________ and the supply
curve of corn ________.
A) increases; shifts rightward
B) increases; shifts leftward
C) decrease; shifts rightward
D) decreases; shifts leftward
E) increases; does not shift
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
36) Which of the following shifts the supply curve for oranges?
A) disastrous weather that destroys about half of this year's orange crop
B) a newly discovered increase in the nutritional value of oranges
C) an increase in the price of bananas, a substitute in consumption for oranges
D) an increase in income for all orange consumers if oranges are a normal good
E) an increase in the number of orange consumers
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
37) Because of the high cost of fuel, railroads such as Union Paciic Corp and CSX Corp
have increased the price they charge to haul freight. This change means that
A) the demand curve for hauling freight has shifted leftward.
B) the supply curve for hauling freight has shifted leftward.
C) the demand curve for hauling freight has shifted rightward.
D) the supply curve for hauling freight has shifted rightward.
E) neither the supply curve nor the demand curve for hauling freight has shifted; the only
change is that the price is higher.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
48
38) Which of the following shifts the supply curve of popcorn leftward?
A) a decrease in the price of popcorn
B) an increase in the price of popcorn
C) a technological development in the production of popcorn
D) a decrease in the number of popcorn suppliers
E) a decrease in the cost of producing popcorn
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
39) In the above igure, the movement from point a to point b relects
A) an increase in the price of pizza.
B) an increase in the supply of pizza.
C) an increase in the number of producers of pizza.
D) a decrease in the cost of the tomato sauce used to produce pizza.
E) a decrease in income if pizza is a normal good.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
49
40) In the above igure, the shift in the supply curve from S to S1 relects
A) an increase in the quantity of pizza supplied.
B) a decrease in the quantity of pizza supplied.
C) an increase in the supply of pizza.
D) a decrease in the supply of pizza.
E) None of the above answers is correct.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
41) In the above igure, the shift in the supply curve from S to S2 relects
A) an increase in the quantity of pizza supplied.
B) a decrease in the quantity of pizza supplied.
C) an increase in the supply of pizza.
D) a decrease in the supply of pizza.
E) a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza
supplied.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
42) In the above igure, the shift in the supply curve from S to S2 might relect
A) a decrease in the cost of the tomato sauce used to produce pizza.
B) a decrease in the number of pizza producers.
C) an increase in the price of a pizza.
D) an increase in income if pizza is a normal good.
E) an increase in the price of a good that is a substitute for consumers.
Skill: Level 3: Using models
Section: Checkpoint 4.2
Status: Old
AACSB: Analytical thinking
50
