ECO 111- FULL QUESTIONS WITH
VERIFIED ANSWERS
QN=1 (1624)(17120) Productivity is defined as the - correct answer ✔✔A. Amount of goods and
services produced from each unit of labor input.
QN=2 (1634)(17140) The phenomenon of scarcity stems from the fact that - correct answer
✔✔D. Resources are limited.
QN=3 (1623)(17122) Mitch has $100 to spend and wants to buy either a new amplifier for his
guitar or a new mp3 player to listen to music while working out. Both the amplifier and the mp3
player cost $100, so he can only buy one. This illustrates the basic concept that - correct answer
✔✔B. People face trade-offs
QN=4 (1650)(17178) Economists build economic models by - correct answer ✔✔C. Making
assumptions.
QN=5 (1667)(17159) Economists use models in order to - correct answer ✔✔A. Learn how the
economy works.
QN=6 (1646)(17184) Which of the following transactions does not take place in the markets for
factors of production in the circular-flow diagram? - correct answer ✔✔D. A woman buys corn
for dinner
QN=7 (1698)(17192) Which of these statements best represents the law of demand? - correct
answer ✔✔C. When the price of a good decreases, buyers purchase more of the good.
,QN=8 (1687)(17196) In a market economy, supply and demand determine - correct answer
✔✔A. Both the quantity of each
QN=9 (1700)(17186) In a market economy, supply and demand determine - correct answer
✔✔A. Both the quantity of each
QN=10 (1711)(17221) Which of the following would not shift the demand curve for mp3
players? - correct answer ✔✔A. A decrease in the price of mp3 players
QN=11 (1736)(17240) Suppose there is a 6 percent increase in the price of good X and a
resulting 6 percent decrease in the quantity of X demanded. Price elasticity of demand for X is -
correct answer ✔✔B. 1.
QN=12 (1731)(17256) Refer to Table 5-3. Using the midpoint method, what is the price elasticity
of demand when price rises from $9 to $12? - correct answer ✔✔D. 2.33
QN=13 (1765)(17303) Which of the following causes a shortage of a good? - correct answer
✔✔B. (ii) A binding price ceiling
QN=14 (1770)(17293) Policymakers use taxes - correct answer ✔✔B. Both to raise revenue for
public purposes and to influence market outcomes.
QN=15 (1771)(17300) A $0.10 tax levied on the buyers of socks will cause the - correct answer
✔✔C. Demand curve for socks to shift down by $0.10.
QN=16 (1750)(17257) If the demand for textbooks is inelastic, then a decrease in the price of
textbooks will - correct answer ✔✔B. Decrease total revenue of textbook sellers.
QN=17 (1758)(17271) Rent control - correct answer ✔✔B. Serves as an example of a price
ceiling.
, QN=18 (1751)(17255) The price elasticity of demand for bread
A. (i) is computed as the percentage change in quantity demanded of bread divided by the
percentage change in price of bread.
B. (ii) depends, in part, on the availability of close substitutes for bread.
C. (iii) reflects the many economic, social, and psychological forces that influence consumers'
tastes for bread.
D. All of (i), (ii), and (iii) are correct. - correct answer ✔✔D. All of (i), (ii), and (iii) are correct.
QN=19 (1757)(17304) Refer to Figure 6-12. How much tax revenue does this tax produce for the
government? - correct answer ✔✔A. $24
QN=20 (1779)(17278) Refer to Figure 6-12. The price paid by buyers after the tax is imposed is -
correct answer ✔✔D. $7.
QN=21 (1792)(17291) A $2.00 tax levied on the sellers of mailboxes will shift the supply curve -
correct answer ✔✔A. Upward by exactly $2.00.
QN=22 (1777)(17268) If the minimum wage exceeds the equilibrium wage, then - correct
answer ✔✔B. The quantity supplied of labor will exceed the quantity demanded.
QN=23 (1799)(17313) Brock is willing to pay $400 for a new suit, but he is able to buy the suit
for $350. His consumer surplus is - correct answer ✔✔A. $50.
QN=24 (1778)(17297) The minimum wage was instituted to ensure workers - correct answer
✔✔C. A minimally adequate standard of living.
QN=25 (1824)(17339) Consumer surplus equals the - correct answer ✔✔A. Value to buyers
minus the amount paid by buyers.
VERIFIED ANSWERS
QN=1 (1624)(17120) Productivity is defined as the - correct answer ✔✔A. Amount of goods and
services produced from each unit of labor input.
QN=2 (1634)(17140) The phenomenon of scarcity stems from the fact that - correct answer
✔✔D. Resources are limited.
QN=3 (1623)(17122) Mitch has $100 to spend and wants to buy either a new amplifier for his
guitar or a new mp3 player to listen to music while working out. Both the amplifier and the mp3
player cost $100, so he can only buy one. This illustrates the basic concept that - correct answer
✔✔B. People face trade-offs
QN=4 (1650)(17178) Economists build economic models by - correct answer ✔✔C. Making
assumptions.
QN=5 (1667)(17159) Economists use models in order to - correct answer ✔✔A. Learn how the
economy works.
QN=6 (1646)(17184) Which of the following transactions does not take place in the markets for
factors of production in the circular-flow diagram? - correct answer ✔✔D. A woman buys corn
for dinner
QN=7 (1698)(17192) Which of these statements best represents the law of demand? - correct
answer ✔✔C. When the price of a good decreases, buyers purchase more of the good.
,QN=8 (1687)(17196) In a market economy, supply and demand determine - correct answer
✔✔A. Both the quantity of each
QN=9 (1700)(17186) In a market economy, supply and demand determine - correct answer
✔✔A. Both the quantity of each
QN=10 (1711)(17221) Which of the following would not shift the demand curve for mp3
players? - correct answer ✔✔A. A decrease in the price of mp3 players
QN=11 (1736)(17240) Suppose there is a 6 percent increase in the price of good X and a
resulting 6 percent decrease in the quantity of X demanded. Price elasticity of demand for X is -
correct answer ✔✔B. 1.
QN=12 (1731)(17256) Refer to Table 5-3. Using the midpoint method, what is the price elasticity
of demand when price rises from $9 to $12? - correct answer ✔✔D. 2.33
QN=13 (1765)(17303) Which of the following causes a shortage of a good? - correct answer
✔✔B. (ii) A binding price ceiling
QN=14 (1770)(17293) Policymakers use taxes - correct answer ✔✔B. Both to raise revenue for
public purposes and to influence market outcomes.
QN=15 (1771)(17300) A $0.10 tax levied on the buyers of socks will cause the - correct answer
✔✔C. Demand curve for socks to shift down by $0.10.
QN=16 (1750)(17257) If the demand for textbooks is inelastic, then a decrease in the price of
textbooks will - correct answer ✔✔B. Decrease total revenue of textbook sellers.
QN=17 (1758)(17271) Rent control - correct answer ✔✔B. Serves as an example of a price
ceiling.
, QN=18 (1751)(17255) The price elasticity of demand for bread
A. (i) is computed as the percentage change in quantity demanded of bread divided by the
percentage change in price of bread.
B. (ii) depends, in part, on the availability of close substitutes for bread.
C. (iii) reflects the many economic, social, and psychological forces that influence consumers'
tastes for bread.
D. All of (i), (ii), and (iii) are correct. - correct answer ✔✔D. All of (i), (ii), and (iii) are correct.
QN=19 (1757)(17304) Refer to Figure 6-12. How much tax revenue does this tax produce for the
government? - correct answer ✔✔A. $24
QN=20 (1779)(17278) Refer to Figure 6-12. The price paid by buyers after the tax is imposed is -
correct answer ✔✔D. $7.
QN=21 (1792)(17291) A $2.00 tax levied on the sellers of mailboxes will shift the supply curve -
correct answer ✔✔A. Upward by exactly $2.00.
QN=22 (1777)(17268) If the minimum wage exceeds the equilibrium wage, then - correct
answer ✔✔B. The quantity supplied of labor will exceed the quantity demanded.
QN=23 (1799)(17313) Brock is willing to pay $400 for a new suit, but he is able to buy the suit
for $350. His consumer surplus is - correct answer ✔✔A. $50.
QN=24 (1778)(17297) The minimum wage was instituted to ensure workers - correct answer
✔✔C. A minimally adequate standard of living.
QN=25 (1824)(17339) Consumer surplus equals the - correct answer ✔✔A. Value to buyers
minus the amount paid by buyers.
