1|Page
Econ 104 Quiz 1 (2026) Actual comprehensive real
exam questions and verified detailed solutions
||Verified Exam!! (MULTIPLE CHOICES) |complete
solutions |A+ GRADED||Newest Exam!!
The farmer has an absolute advantage in .......... and the
rancher has a comparative advantage in ...............
Select one:
a. meat, meat
b. potatoes, potatoes
c. neither good, potatoes
d. neither good, meat - Answers-c. neither good, potatoes
Economics is defined as
Select one:
a. the study of business
b. the study of how society controls prices and output
c. the study of how society manages its scarce resources
d. the study of government regulation - Answers-c. the
study of how society manages its scarce resources
,2|Page
In the second half of the nineteenth century, grasshoppers
caused great destruction to crops in the American
Midwest. To rid the area of the insects, states paid large
bounties for each bushel of dead grasshoppers. In some
cases, farmers began growing and harvesting
grasshoppers rather than wheat. This is an example of
Select one:
a. profit maximisation
b. irrational behaviour
c. rational response to economic incentives
d. the need for a subsidy - Answers-c. rational response to
economic incentives
Paul decides to spend an hour playing football rather than
studying or working at $6 per hour. His trade off is
Select one:
a. nothing, because he enjoys playing football more than
working or studying
b. the benefit to his marks from studying for an hour or the
$6 he could have earned
c. the increase in skill he obtains from playing football for
that hour
,3|Page
d. nothing, because he spent $6 for admission into the
sports complex to play football - Answers-b. the benefit to
his marks from studying for an hour or the $6 he could
have earned
The opportunity cost of going to university is
Select one:
a. the sum of all the money a student spends on food,
clothing, books, transportation, tuition, lodging and other
expenses
b. the value of the best opportunity a student gives up to
attend university
c. zero for students who are fortunate enough to have all
of their university expenses paid by someone else
d. zero, since a university education will allow a student to
earn a larger income after graduation - Answers-b. the
value of the best opportunity a student gives up to attend
university
Demand is said to be elastic
Select one:
, 4|Page
a. if the price of the good responds only slightly to
changes in the quantity demanded
b. if the demand shifts only slightly when the price of the
good changes
c. if buyers respond substantially to changes in the price of
the good
d. if the quantity demanded changes only slightly when the
price of the good changes - Answers-c. if buyers respond
substantially to changes in the price of the good
Which of these statements best represents the law of
demand?
Select one:
a. When buyers' tastes for a good increase, they purchase
more of the good.
b. When income levels increase, buyers respond by
purchasing more of most goods.
c. When the price of a good falls, buyers respond by
purchasing more of the good.
d. When buyers' demands for a good increase, the price of
the good will increase. - Answers-c. When the price of a
Econ 104 Quiz 1 (2026) Actual comprehensive real
exam questions and verified detailed solutions
||Verified Exam!! (MULTIPLE CHOICES) |complete
solutions |A+ GRADED||Newest Exam!!
The farmer has an absolute advantage in .......... and the
rancher has a comparative advantage in ...............
Select one:
a. meat, meat
b. potatoes, potatoes
c. neither good, potatoes
d. neither good, meat - Answers-c. neither good, potatoes
Economics is defined as
Select one:
a. the study of business
b. the study of how society controls prices and output
c. the study of how society manages its scarce resources
d. the study of government regulation - Answers-c. the
study of how society manages its scarce resources
,2|Page
In the second half of the nineteenth century, grasshoppers
caused great destruction to crops in the American
Midwest. To rid the area of the insects, states paid large
bounties for each bushel of dead grasshoppers. In some
cases, farmers began growing and harvesting
grasshoppers rather than wheat. This is an example of
Select one:
a. profit maximisation
b. irrational behaviour
c. rational response to economic incentives
d. the need for a subsidy - Answers-c. rational response to
economic incentives
Paul decides to spend an hour playing football rather than
studying or working at $6 per hour. His trade off is
Select one:
a. nothing, because he enjoys playing football more than
working or studying
b. the benefit to his marks from studying for an hour or the
$6 he could have earned
c. the increase in skill he obtains from playing football for
that hour
,3|Page
d. nothing, because he spent $6 for admission into the
sports complex to play football - Answers-b. the benefit to
his marks from studying for an hour or the $6 he could
have earned
The opportunity cost of going to university is
Select one:
a. the sum of all the money a student spends on food,
clothing, books, transportation, tuition, lodging and other
expenses
b. the value of the best opportunity a student gives up to
attend university
c. zero for students who are fortunate enough to have all
of their university expenses paid by someone else
d. zero, since a university education will allow a student to
earn a larger income after graduation - Answers-b. the
value of the best opportunity a student gives up to attend
university
Demand is said to be elastic
Select one:
, 4|Page
a. if the price of the good responds only slightly to
changes in the quantity demanded
b. if the demand shifts only slightly when the price of the
good changes
c. if buyers respond substantially to changes in the price of
the good
d. if the quantity demanded changes only slightly when the
price of the good changes - Answers-c. if buyers respond
substantially to changes in the price of the good
Which of these statements best represents the law of
demand?
Select one:
a. When buyers' tastes for a good increase, they purchase
more of the good.
b. When income levels increase, buyers respond by
purchasing more of most goods.
c. When the price of a good falls, buyers respond by
purchasing more of the good.
d. When buyers' demands for a good increase, the price of
the good will increase. - Answers-c. When the price of a
