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Micro Final Practice (Exam 1 Questions)
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Questions in this quiz (30)
1If the price decreases in the region of the demand curve between points B and C, we can expect total revenue to ...
- Afirst increase, then decrease until total revenue is maximized.
- Bdecrease.
- Cincrease.
- Dstay the same.
2Which of the following examples does NOT illustrate the principle represented by the adage, "There is no such thing as a free lunch"?
- AMelissa needs to pay her rent and her electric bill.
- BRobert must decide between studying for his psychology exam and working at his part-time job.
- CLisa can spend her money on a new smart phone or on a weekend trip.
- DKevin must choose between buying a new flat screen television and buying his textbooks for his semester.
3Which of the following is an example of something economists study?
- AMitch chooses to work overtime to earn extra income for his family.
- BThe unemployment rate in the US has fallen by 2% in the last few years.
- CMegan sells her physics textbook from last semester to her roommate for half the price of a new textbook.
- DAll are correct.
4Which of the following could be the price elasticity of demand for a good for which an increase in price would increase revenue?
- A1
- B1.8
- C0.3
- DNone are correct.
5Which of the following changes would NOT shift the demand curve for a good or service?
- AA change in expectations about the future price of the good or service.
- BA change in the price of the good or service.
- CA change in the price of a related good or service.
- DA change in income.
6When the price is $15, total revenue is...
- A$2,500
- B$3,500
- C$4,500
- D$1,500
7Using the midpoint method, when price falls from $8 to $4, the price elasticity of demand is...
- A2.33
- B1
- C0.67
- D0.43
8Which of the following could result in a movement from Point B to Point Z?
- AA) a change in the number of restaurant meals demanded
- BB) A change in the price of a restaurant meal
- CC) a change in income
- DBoth A and B are correct
9An economy's production of 2 goods is efficient if...
- Athe goods are produced using only some of society's available resources.
- Bit is impossible to produce more of one good without producing less of the other.
- Call members of society consume equal portions of the goods.
- Dthe opportunity cost of producing more of one good is zero.
10Assume the market for tennis balls if perfectly competitive. When one tennis ball producer exits the market,...
- Athe price of tennis ball increases.
- Bthere is no longer a market for tennis balls.
- Cthe price of tennis balls decreases.
- Dthe price of tennis balls does not change.
11Economists believe that production possibilities frontiers are often bowed because...
- Aof improvements in technology.
- Bopportunity costs are constant.
- Cresources are not completely adaptable.
- Dtrade-offs inevitably create unemployment.
12Which of the following is most likely an inferior good?
- Aand airline ticket
- Bgasoline
- Can antique car
- Da bus ticket
13Assume that a college student purchases only Ramen noodles and textbooks. If Ramen noodles are an inferior good and textbooks are a normal good, then the substitution effect associated with a decrease in the price of a textbook, by itself, will result in...
- Aa decrease in the consumption of textbooks and a decease in the consumption of Ramen noodles.
- Ba decrease in the consumption of textbooks and an increase in the consumption of Ramen noodles.
- Can increase in the consumption of textbooks and a decrease in the consumption of Ramen noodles.
- Dan increase in the consumption of textbooks and an increase in the consumption of Ramen noodles.
14The price elasticity of demand measures how much...
- Aquantity demanded responds to a change in price.
- Bquantity demanded responds to a change in income.
- Cdemand responds to a change in supply.
- Dprice responds to a change in demand.
15Hold Jared's preferences for pizza and Pepsi constant. Suppose Jared's income, as well as the prices of pizza and Pepsi, double. As a result,...
- Aboth Jared's indifference curves and his budget constraint change.
- BJared's indifference curves change, but his budget constraint does not change.
- CNeither Jared's indifference curves nor his budget constraint change.
- DJared's budget constraint changes, but his indifference curves do not change.
16The law of demand states that, other things equal, when the price of a good...
- Arises, the quantity demanded of the good rises.
- Bfalls, the quantity demanded of the good rises.
- Cfalls, the demand for the good rises.
- Drises, the demand for the good falls.
17Which of the following could be the price elasticity of demand for a good for which a decrease in price would decrease revenue?
- A1
- B1.8
- C0.8
- D2.4
18Which of the following price changes would result in no change in sellers' total revenue?
- AThe price decreases from $27 to $24.
- BThe price increases from $15 to $21.
- CThe price increases from $18 to $21.
- DThe price decreases from $24 to $18.
19The 2 basic reasons why economists often appear to give conflicting advice to policymakers are differences in...
- Aopinions and values.
- Bscientific judgement and education.
- Cscientific judgement and values.
- Dopinions and education.
20This economy CANNOT produce at which point(s)?
- AQ, S, T
- BQ, S
- CS
- DQ
21After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring Break is still months away, and you may reverse this decision. Which of the following event would prompt you to reverse this decision?
- AThe marginal benefit of going to Ft. Lauderdale decreases.
- BThe marginal benefit of going to Cancun increases.
- CThe marginal cost of going to Ft. Lauderdale decreases.
- DThe marginal cost of going to Cancun decreases.
22Which of the following is an example of a positive, as opposed to normative, statement?
- AInflation is more harmful to the economy than unemployment is.
- BWhen public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.
- CPrices rise when the government prints too much money.
- DIf welfare payments increase, the world will be a better place.
23You have $36 to spend on good X and good Y. If good X costs $6 and good Y costs $12, your budget constraint is...
- ACD
- BBD
- CAB
- DDE
24A budget constraint illustrates the...
- Apurchases made by consumers.
- Bconsumption bundles that a consumer can afford.
- Cprices that a consumer chooses a pay for products he consumes.
- Dconsumption bundles that give a consumer equal satisfaction.
25Efficient production is represented by which point(s)?
- AA, B, D
- BA, B
- CA, B, C
- DC
26Last year, Tess bought 5 handbags when her income was $54,000. This year, her income is $60,000, and she purchased 7 handbags. Holding other factors constant, it follows that Tess's income elasticity of demand is about...
- A3.17, and Tess regards handbags as inferior goods.
- B3.17, and Tess regards handbags as normal goods.
- C0.32, and Tess regards handbags as inferior goods.
- D0.32, and Tess regards handbags as normal goods.
27Which of the following would cause the supply curve to shift from Supply A to Supply C in the market for beach towels?
- Aan increase in the price of beach towels
- Ba decrease in the number of firms selling beach towels
- Ca decrease in the price of cotton
- Dan expectation by firms that the price of beach towels will increase in the very near future
28The movement from Point A to Point B on the graph is caused by...
- Aa decrease in the price of the good.
- Ban increase in the price of the good.
- Can advance in production technology.
- Da decrease in input prices.
29The opportunity cost of moving from Point J to Point L is...
- A2 cups of coffee.
- B2 donuts.
- C2 donuts and 2 cups of coffee.
- D6 cups of coffee.
30Normative statements are...
- Adescriptive, whereas positive statements are perspective.
- Bbackward-looking, whereas positive statements are forward-looking.
- Cforward-looking, whereas positive statements are backward-looking.
- Dprescriptive, whereas positive statements are descriptive.
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- Description
- Practice quiz for final. this quiz only includes multiple choice from exam 1.
- Author
- tran.melissa2015
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- English
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