Which of the following is a possible benefit of taking this test?

In terms of net benefit, what is the effect of a decrease in the tastes and preferences for landline phones on the decision to purchase a landline phone?

Consider the following decision: whether to go to community college. Suppose there is an increase in the wages for full-time jobs that require a high school diploma. In terms of the net benefit equation, how is the choice of whether to go to community college affected?

An example of a marginal decision is whether to spend an additional hour doing chores. 

Recall the policy of requiring restaurants and fast food places to show the calorie counts for each meal. What economic principle explained why this policy backfired?

Consider the principles of economics. Which of the following can be inferred from one of these principles of economics?

For the Circular Flow Model, inputs are supplied by households.

The Circular Flow Model’s purpose is to show how a country’s individuals (persons and firms) interact. 

If there is no trade, what does the Circular Flow Model look like?

Which of the following is an example of a positive statement about microeconomics?

What is the definition of the supply curve?

Recall the market for marijuana in Colorado discussed in lecture. Recall that in January of 2014 the market had a shortage. Which of the following was true?

Consider the market for gas in the US. Suppose there is an attack on a major oil supplying country that decreases the supply of oil and causes the price of oil to rise. Oil is used to produce gas. As a result, the attack causes the price and quantity of gas to decrease. 

Recall the video from the lecture slides about hula hoops that shows a little boy happening upon a hula hoop and then performing in front of a bunch of kids – who then love the hula hoops and rush to buy them. Which of the following best describes the effect of this little boy on the market for hula hoops?

Think about the market for video game consoles. Suppose there is a decrease in tastes and preferences for these consoles as people play more games on their cell phones. At the same time, the cost of making consoles increases. What is the effect of these changes on the equilibrium price and quantity for video game consoles?

Consider the market for marijuana. Suppose the price of a vaporizer (which is used to consume marijuana) becomes cheaper. What is the effect on P and Q on the market for marijuana?

Think about the gas market at the start of autumn when people drive less. Applying the three-step process, what would happen in this market at that time?

Consider the market for pork in China. A major disease is spreading through the pig population that has wiped out for half of the livestock. What effect would this disease have on the equilibrium price and quantity for pork in China?

Suppose for the market for housing that both buyers and sellers expected the price to increase. Which of the following would result?

We have the following table for humidifiers: Price Quantity supplied Quantity demanded $200 6,500 1,500 $175 6,000 2,000 $150 5,500 2,500 $125 5,000 3,000 $100 4,500 3,500 $75 4,000 4,000 $50 3,500 4,500 $25 3,000 5,000 $0 2,500 5,500 What is the equilibrium price?

Use the table from the previous problem. Suppose the government sets a price ceiling of $150. What is the amount bought and sold?

In the kidney market in the US, people are not allowed to sell a kidney for money but must be willing to give it away without any financial payment. In this market, which of the following is true?

According to this course, what major economic principle is demonstrated by price controls (such as rent control)?

What is the effect of a tax?

Suppose the tax per unit increases. What is the effect on the tax revenue?

What is the specific definition of the PES?

Consider the market for gas powered cars. In the past decade, there has been the emergence of pure electrical cars and hybrid plug in cars. What do you think would be the effect of these new options on the PED for gas powered cars?

Suppose a good has a PED of -0.4. What can be inferred from this number?

Suppose you have the following information for the supply for toddler walkers: P1=20 Q1=500 P2=10 Q2=100 Which of the following is true?

Consider the market for video games in the early 1980s. Due to looser licensing laws, more and more companies (firms) were producing video games. Due to a major fall in the quality of video games, people’s tastes and preferences moved to other forms of entertainment. What do you think happened to the price of video games?

Again, consider the market for video games in the early 1980s. As stated, due to looser licensing laws, more and more companies (firms) were producing video games. Also, due to a major fall in the quality of video games, people’s tastes and preferences moved to other forms of entertainment. Using what you have learned from this class, what happens to the quantity of the video games? 

Which of the following will clearly cause a decrease in the total revenue for the entire market?

Consider cell phones. Over time, people consider this device increasingly essential. What would this mean for its PED?

Suppose you have the following information for the demand for toddler walkers: P1=10 Q1=100 P2=20 Q2=170 Which of the following is true?

By one estimate, the PES for housing in California’s more regulated cities like San Francisco is 0.0. If so, what can we conclude from this number?

From the lecture slides, recall the PES of housing in California’s less regulated cities which is 0.36. What can be inferred from this number?

Consider the good known as Naomis. Initially, a tax is placed on the buyers of this good. Suppose that due to intense pressure from consumer groups, the government decides to switch the tax to being on sellers. Which of the following is a result of this switch?

Consider a country called “Grigorian-opolis”. In this country, there is a $1.00 tax per gallon on gas applied to the buyers. Then, this tax is raised to $2.00 per gallon of gas applied to the buyers. What happens to the demand for gas powered vehicles?

Suppose we have a good known as Castellons. It has a PES of 0.5. Suddenly, there is a huge increase in tastes and preferences for it. What happens as a result?