Econ 200 Final Practice Exam
Questions Merged With Correct
Complete Solutions Already Graded
A+ || 2026-2027 Latest Update!!!
A market that consists of only a few large firms is most likely a(n): -
ANSWER-oligopoly.
A monopoly has: - ANSWER-no competition at all
A positive externality is a(n): - ANSWER-external benefit.
A tax imposed in an otherwise efficient market:
1) increases efficiency.
2) decreases total surplus.
3) maximizes total surplus.
4) often fails to generate revenue. - ANSWER-2) decrease total surplus
A tax on which of the following is specifically designed to change
individuals' behavior?
,1) Income
2) Cigarettes
3) Dividends
4) Interest - ANSWER-2) Cigarettes
A tax will sometimes alter consumers' incentives. Which of the
following statements about such a tax is true?
1)This type of tax is meant to increase consumption.
2) This type of tax is called a sin tax.
3) A tax designed to raise revenue may sometimes alter consumer
incentives as a side effect.
4) In general, such taxes will increase consumer surplus. - ANSWER-A
tax designed to raise revenue may sometimes alter consumer
incentives as a side effect.
Adverse selection occurs in insurance markets because: - ANSWER-the
buyer has more information than the seller.
All externalities: - ANSWER-create either a cost or benefit to a person
other than the person who caused them.
An oligopoly is characterized by the _______, while the defining
characteristic of a monopolistic competition is the ______________. -
ANSWER-number of firms; variety of products
, Any cost that is imposed without compensation on someone other
than the person who caused it is called a(n) _______ cost. - ANSWER-
external
Choosing to produce at any point within (inside, not on) a production
possibilities frontier is: - ANSWER-inefficient, meaning the society
would not be using all its available resources in their best possible
uses.
Consider a society facing the production possibilities frontiers in the
figure shown. Out of the following options, which is the most likely
cause of a society moving from PPF1 to PPF3? - ANSWER-more
workers
Consider the production possibilities frontier displayed in the figure
shown. A society with this frontier should choose to produce: -
ANSWER-at any point on the frontier rather than inside it.
Discretionary spending involves public expenditures that:
1) have to be approved each year.
2) are planned in the federal budget and do not need annual approval.
3) are mandated and regulated by permanent laws.
4) entitle people to benefits by virtue of age, income, or some other
factor. - ANSWER-1) have to be approved each year.
Excludability is important because it: - ANSWER-allows sellers to set
an enforceable price on a good.
Questions Merged With Correct
Complete Solutions Already Graded
A+ || 2026-2027 Latest Update!!!
A market that consists of only a few large firms is most likely a(n): -
ANSWER-oligopoly.
A monopoly has: - ANSWER-no competition at all
A positive externality is a(n): - ANSWER-external benefit.
A tax imposed in an otherwise efficient market:
1) increases efficiency.
2) decreases total surplus.
3) maximizes total surplus.
4) often fails to generate revenue. - ANSWER-2) decrease total surplus
A tax on which of the following is specifically designed to change
individuals' behavior?
,1) Income
2) Cigarettes
3) Dividends
4) Interest - ANSWER-2) Cigarettes
A tax will sometimes alter consumers' incentives. Which of the
following statements about such a tax is true?
1)This type of tax is meant to increase consumption.
2) This type of tax is called a sin tax.
3) A tax designed to raise revenue may sometimes alter consumer
incentives as a side effect.
4) In general, such taxes will increase consumer surplus. - ANSWER-A
tax designed to raise revenue may sometimes alter consumer
incentives as a side effect.
Adverse selection occurs in insurance markets because: - ANSWER-the
buyer has more information than the seller.
All externalities: - ANSWER-create either a cost or benefit to a person
other than the person who caused them.
An oligopoly is characterized by the _______, while the defining
characteristic of a monopolistic competition is the ______________. -
ANSWER-number of firms; variety of products
, Any cost that is imposed without compensation on someone other
than the person who caused it is called a(n) _______ cost. - ANSWER-
external
Choosing to produce at any point within (inside, not on) a production
possibilities frontier is: - ANSWER-inefficient, meaning the society
would not be using all its available resources in their best possible
uses.
Consider a society facing the production possibilities frontiers in the
figure shown. Out of the following options, which is the most likely
cause of a society moving from PPF1 to PPF3? - ANSWER-more
workers
Consider the production possibilities frontier displayed in the figure
shown. A society with this frontier should choose to produce: -
ANSWER-at any point on the frontier rather than inside it.
Discretionary spending involves public expenditures that:
1) have to be approved each year.
2) are planned in the federal budget and do not need annual approval.
3) are mandated and regulated by permanent laws.
4) entitle people to benefits by virtue of age, income, or some other
factor. - ANSWER-1) have to be approved each year.
Excludability is important because it: - ANSWER-allows sellers to set
an enforceable price on a good.
