Econ 001 - Principles of Economics » Fall 2021 » Final Exam
Need help with your exam preparation?
Get Answers to this exam for $6 USD.
Get Answers to all exams in [ Econ 001 - Principles of Economics ] course for $25 USD.
Existing Quiz Clients Login here
Question #1
The Law of Supply says: "an increase in the price of a good
A.
increases the quantity supplied of that good."
B.
increases the supply of that good."
Question #2
A seller's "Cost" is
A.
the seller's net gain or "profit" from selling his good.
B.
the maximum amount the seller needs to receive to sell his good.
C.
the minimum amount the seller needs to receive when supplying his good.
Question #3
A buyer's "Willingness to Pay" is
A.
the buyer's net gain or "consumer surplus" measured in dollars.
B.
the buyer's maximum amount he is willing to pay for a good.
C.
the buyer's minimum amount he is willing to pay for a good.
Question #4
An industry that has only two firms is called
A.
perfect competition
B.
monopoly
C.
oligopoly
D.
duopoly
Question #5
The Law of Demand says: "an increase in the price of a good
A.
decreases the demand for that good."
B.
decreases the quantity demanded for that good."
Question #6
Which of the following is considered a "Supply" shock, an event that can shift the seller's Cost curve?
A.
finding more resources, change in the price of inputs used for production and improved manufacturing technologies
B.
change in buyers' incomes, change in price of 'complements' to a good and change in buyers' incomes
C.
change in price of 'complements' to a good, change in tastes or preferences for a good and change in buyers' incomes
Question #7
Which of the following are "bad" shocks - changes that hurt our resources and survival.
A.
solar storms disrupt electrical grids and shut down power to cities for 20 months, hurricanes destroy U.S. farms and bridges and a new cow disease wipes out beef cattle herds around the world!
B.
ideal weather allows abundant food crops to be grown for 10 years straight, companies start to use 3-D printers to custom manufacture products, art work and repair parts for their customers, and a new cow disease wipes out beef cattle herds around the world
C.
ideal weather allows abundant food crops to be grown for 10 years straight, companies start to use 3-D printers to custom manufacture products, art work and repair parts for their customers, and botantists discover that a common fast-growing plant found in South America can be used to cure headaches in humans
Question #8
New technologies that help us use resources more efficiently also help the Society's total "economic pie" to expand (get bigger)!
A.
FALSE
B.
TRUE
Question #9
Socialist economies have the following features:
A.
inequality of incomes decentralized decisions private property unstable jobs (risk of unemployment) rapid innovations & discovery of new technologies
B.
public (state owned) property guaranteed employment centralized decisions stagnant (little or no) economic growth equality of income
C.
inequality of incomes decentralized decisions private property unstable jobs (risk of unemployment) freedom to be an entrepreneur and make profits.
D.
inequality of incomes decentralized decisions private property unstable jobs (risk of unemployment)
Question #10
To reduce global conflicts, Professor Brown urges students get a degree in science that helps stabilize resources -- like hydrology, agriculture or engineering -- not Political science or Amish Haiku.
A.
TRUE
B.
FALSE
Question #11
A government price "ceiling"
A.
sets a legal maximum on the Price at which a good can be sold.
B.
is always equal to the equilibrium price.
C.
sets a legal minimum on the Price at which a good can be sold.
Question #12
Which of the following inputs used by a Mover (moving company) would be considered a "variable" cost?
A.
The truck fuel and the workers' & drivers' hours worked.
B.
The moving vans (trucks) used.
Question #13
Modern Cost theory says: The more you produce, the more resources (variable input) you'll need for each added unit of output.
A.
TRUE
B.
FALSE
Question #14
Kim wants to sell her used Accounting book. Her younger bother could use it, but she would sell it for a minimum of $50. Lisa wants to buy Kim's book and would pay a maximum of $70. Which of the following possible prices would provide trade gains to BOTH of them?
A.
All of these are correct.
B.
$120
C.
$20
D.
$60
Question #15
Which of the following is NOT a type of industry?
A.
monopoly
B.
monopolistic competition
C.
duopoly
D.
monarchy
E.
oligopoly
Question #16
Your Wedding is in 3 days - your dog destroys your perfect pair of sandals to match your Wedding dress. You MUST have those sandals, and won't accept any substitutes - so your demand for a replacement pair (as you jump on Amazon to search) is likely to be
A.
neither answer is correct.
B.
very inelastic!
C.
very elastic!
Question #17
Number of workers: Total Product: 1 10 2 18 3 20 4 21 Use the Total Product table above. What is the Marginal physical product of the 2nd worker
A.
20
B.
9
C.
18
D.
1
E.
8
Question #18
If home Prices are expected to go higher 'next year,' this will increase Demand for homes today (presently).
A.
FALSE
B.
TRUE
Question #19
The Production Possibilities Curve graph shows our "fixed pie" can grow! The PPC curve can shift outward, when new technologies are discovered.
A.
FALSE
B.
TRUE
Question #20
At the pawn shop, the buyer's Maximum value for a used phone is $120, while the seller's Minimum cost for his used phone is $150. That means
A.
There can be "Gains from trade," and a mutually agreeable Price will be decided somewhere between $120 and $150.
B.
No "Gains from trade" are possible in this situation.
Question #21
A.
FALSE
B.
TRUE
Question #22
North Korea is an example of a country with a "Socialist" (command) economy.
A.
TRUE
B.
FALSE
Question #23
The Cross-Price Elasticity value is +1.2. That means the two goods are
A.
related as Substitutes, such as brownies and cookies.
B.
related as Complements, such as milk and cereal.
Question #24
Jen is glad to see her favorite cologne is on sale - at a Price of $40. The Most she is Willing to Pay is $55. She buys it - and her Consumer Surplus is
A.
$15
B.
$40
C.
$25
D.
$5
E.
$95
F.
None of these is correct.
Question #25
Who is more self-interested in wanting a good price in the market place... buyer or seller?
A.
The buyer is more self-interested. That's why we call some buyers "stingy" or "cheap."
B.
The seller is more self-interested. That's why we call some companies "greedy."
C.
In economics, they are viewed as equally self-interested. The seller will try to sell to the highest bidder. The buyer will try to buy from the lowest offer.
Question #26
Which of the following are examples of "Private Goods"?
A.
a cheeseburger, a hair cut and a winter jacket
B.
a light house, a highway and a hair cut
C.
a light house, a highway and a winter jacket
D.
a light house, a highway and a fire station
Question #27
Minimum Wage Laws are an example of a government "price Floor."
A.
FALSE
B.
TRUE
Question #28
The main features of Monopolistic Competition are
A.
a single firm operates in the market and a few large firms dominate the market
B.
firms in the market sell identical products and a single firm operates in the market
C.
All of these can be features of "Monopolistic Competition"
D.
firms in the market sell slightly differentiated products and a large number of firms are in the market
Question #29
Jordan can make 28 donuts or 4 cakes an hour. His 'opportunity cost' of making 1 cake is
A.
1/7 donut
B.
4 donuts
C.
1 donut
D.
24 donuts
E.
7 donuts
F.
28 donuts
Question #30
Economists view human behavior as individuals "making choices." Sociology views behavior as a matter of one's group identity and "social problems."
A.
TRUE
B.
FALSE
Question #31
You lower the Price for your shop's vintage shoes. Your Total Revenue falls as a result. This means your customers have "Elastic" demand for your shoes.
A.
FALSE
B.
TRUE
Question #32
The Supply of Hair Extensions for 'this week' is more elastic than the Supply of Hair Extentions for June 2022.
A.
TRUE
B.
FALSE
Question #33
If my percentage change in Quantity demanded is -20%, for a percentage change in my Income of -40%, then
A.
Income Elasticity of Demand is -2, and it's an Inferior good.
B.
Income Elasticity of Demand is -1/2 (or -.5), and it's an Inferior good.
C.
None of these is correct.
D.
Income Elasticity of Demand is +1/2 (or +.5), and it's a Superior-Normal good.
E.
Income Elasticity of Demand is +2, and it's a Superior-Normal good.
Need help with your exam preparation?
Get Answers to this exam for $6 USD.
Get Answers to all exams in [ Econ 001 - Principles of Economics ] course for $25 USD.
Existing Quiz Clients Login here