Chapter 3 Review - MyWeb

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24. In much of the country, homeowners choose to heat their houses with either natural gas or home heating oil. Which of the following could cause the demand for natural gas to change A) a change in the price of home heating oil B) a change in income C) an increase in consumer tastes for natural gas as an energy source D) a change in the price of home heating oil, a change in income, and an increase in consumer tastes for natural gas as an energy source 25. Suppose there is currently an excess supply of chemical engineers in India. Over time, the salaries for chemical engineers will fall in India. A) True B) False 26. Why are economists so particular about the difference between an increase in “quantity demanded” and an increase in “demand” Aren't they the same thing Use the following to answer question 27: Figure: Shifts in Demand and Supply II Page 8
27. (Figure: Shifts in Demand and Supply II) The graph shows how supply and demand might shift in response to specific events. Suppose a drought destroys one-third of the nation's peanut crop. Which panel best describes how this will affect the market for peanuts A) Panel A B) Panel B C) Panel C D) Panel D 28. For many college students, after graduation their demand for used cars decreases. This could be because used cars are considered a normal good to college graduates. A) True B) False Use the following to answer question 29: Figure: Supply of Coconuts 29. (Figure: Supply of Coconuts) If the prices of inputs (e.g., labor, fertilizer, and fuel) used to produce and transport coconuts are increasing, then the movement in the model could be: A) A to B. B) B to A. C) C to A. D) E to B. Page 9
Page 1 and 2: Chapter 3 Review 1. A shift to the
Page 3 and 4: 5. If the United States increases t
Page 5 and 6: 12. If there is an excess supply of
Page 7: 21. (Figure: Demand and Supply of W
Page 11 and 12: Use the following to answer questio
Page 19 and 20: 53. The law of demand states that,

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