FSU HAMMOCK MACRO FINAL EXAM
(2026-2027) QUESTIONS AND CORRECT
ANSWERS GRADED A+
A
Which of the following would most likely increase the supply of beef?
A. lower prices of grains used to feed cattle
B. lower prices for chicken, a substitute for beef
C. new medical research suggesting that beef causes more serious health problems
than was previously thought
D. an increase in the cost of transporting beef products to the consumer market
D
How will an increase in lumber prices influence the home construction market?
A. The demand for newly constructed homes will increase.
B. The demand for newly constructed homes will decrease.
C. The supply of newly constructed homes will increase.
D. The supply of newly constructed homes will decrease.
A
When economists say the supply of a product has decreased, they mean that
,A. the supply curve has shifted to the left.
B. the product price has decreased, and as a consequence, suppliers are producing
less of the product.
C. producers are now willing to sell more of this product at each possible price.
D. the supply curve has shifted to the right.
A
The market for gasoline is in equilibrium, but the government decides that people
are using too much of it, producing too much pollution and too many greenhouse
gases. The government therefore imposes taxes on consumers of gasoline. The
result will be...
A. A decrease in price, and a decrease in quantity.
B. An increase in price, and a decrease in quantity.
C. A decrease in price, and an increase in quantity.
D. An increase in price, and an increase in quantity.
C
Suppose the market for t-shirts is in equilibrium, and the government imposes a $2
per shirt tax on buyers of t-shirts. The result will be...
A. a decrease in tax revenue.
B. more t-shirts are sold.
C. fewer t-shirts are sold.
D. None of the above.
, A
Suppose prices for new homes have risen and sales of new homes have also risen.
We can conclude that
A. the demand for new homes has risen.
B. the law of demand has been violated.
C. new firms have entered the construction industry
D. construction firms must be facing higher costs.
C
Two studies published in the New England Journal of Medicine link the risk of
breast cancer to alcohol consumption. Young women who have nine drinks per
week were reportedly 150 percent more likely to develop breast cancer. According
to economic analysis, how would this information affect the market for alcohol?
A. Demand will increase, placing upward pressure on price.
B. Supply will decrease, placing downward pressure on price.
C. Demand will decrease, placing downward pressure on price.
D. Supply will increase, placing upward pressure on price.
D
When economists say that equilibrium is efficient, they mean that...
A. all businesses are maximizing profit.
B. all units of output are produced at maximum cost.
C. consumers buy goods until the demand curve intersects the horizontal axis.
D. all units of output that have a marginal benefit greater than marginal cost have
been produced and consumed.
(2026-2027) QUESTIONS AND CORRECT
ANSWERS GRADED A+
A
Which of the following would most likely increase the supply of beef?
A. lower prices of grains used to feed cattle
B. lower prices for chicken, a substitute for beef
C. new medical research suggesting that beef causes more serious health problems
than was previously thought
D. an increase in the cost of transporting beef products to the consumer market
D
How will an increase in lumber prices influence the home construction market?
A. The demand for newly constructed homes will increase.
B. The demand for newly constructed homes will decrease.
C. The supply of newly constructed homes will increase.
D. The supply of newly constructed homes will decrease.
A
When economists say the supply of a product has decreased, they mean that
,A. the supply curve has shifted to the left.
B. the product price has decreased, and as a consequence, suppliers are producing
less of the product.
C. producers are now willing to sell more of this product at each possible price.
D. the supply curve has shifted to the right.
A
The market for gasoline is in equilibrium, but the government decides that people
are using too much of it, producing too much pollution and too many greenhouse
gases. The government therefore imposes taxes on consumers of gasoline. The
result will be...
A. A decrease in price, and a decrease in quantity.
B. An increase in price, and a decrease in quantity.
C. A decrease in price, and an increase in quantity.
D. An increase in price, and an increase in quantity.
C
Suppose the market for t-shirts is in equilibrium, and the government imposes a $2
per shirt tax on buyers of t-shirts. The result will be...
A. a decrease in tax revenue.
B. more t-shirts are sold.
C. fewer t-shirts are sold.
D. None of the above.
, A
Suppose prices for new homes have risen and sales of new homes have also risen.
We can conclude that
A. the demand for new homes has risen.
B. the law of demand has been violated.
C. new firms have entered the construction industry
D. construction firms must be facing higher costs.
C
Two studies published in the New England Journal of Medicine link the risk of
breast cancer to alcohol consumption. Young women who have nine drinks per
week were reportedly 150 percent more likely to develop breast cancer. According
to economic analysis, how would this information affect the market for alcohol?
A. Demand will increase, placing upward pressure on price.
B. Supply will decrease, placing downward pressure on price.
C. Demand will decrease, placing downward pressure on price.
D. Supply will increase, placing upward pressure on price.
D
When economists say that equilibrium is efficient, they mean that...
A. all businesses are maximizing profit.
B. all units of output are produced at maximum cost.
C. consumers buy goods until the demand curve intersects the horizontal axis.
D. all units of output that have a marginal benefit greater than marginal cost have
been produced and consumed.
