Principles of Microeconomics Exam 1 Questions And Answers (Verified And Updated)

Principles of Microeconomics Final Exam Questions And Answers 100% Verified The price of gold increased. The following is likely to happen on the gold market -the demand for gold will increase now and supply of gold will decrease now -the demand for gold will decrease now and supply of gold will increase now -both supply and demand now will decrease -both demand and supply now will increase -neither supply nor demand will shift - answerneither supply nor demand will shift which of the following areas graphically represents total surplus? -area above the supply curve but below the price -area below the demand curve but above the price -area below the price -area above the price -area below the supply curve and above the demand curve -area above the supply curve but below the demand curve - answerArea above the supply curve but below the demand curve The price of good X Increased and the demand for good Y decreased as a result. This suggests that X and Y are -normal goods -inferior goods -substitutes -complements - answerComplements Anna has 3 options of what to do today: 1) go rock climbing which she values at $40. 2) Watch the new episode of the House of Dragon which she values at $20. 3)Studying for an economics exam which she values at $10. She picks to go rock climbing. What are her opportunity costs in this case? -$10 -$20 -$30 -$40 - answer$20 Which of the following results in a shortage? -binding price ceiling -binding price floor -non-binding price ceiling -non-binding price floor -both binding and non-binding price ceiling -both binding and non-binding price floor - answerBinding price ceiling A government introduced a binding price floor. As a result: -efficiency will increase -efficiency will decrease -efficiency will stay the same - answerEfficiency will decrease The actual price of chicken is $4. The government tells that the maximum price of chicken should be $5. This is an example of: -binding price ceiling -binding price floor non-binding price ceiling non-binding price floor - answerNon-binding price ceiling Suppose there are no price control on the market. It is currently experiencing a surplus. This suggests that the price will: -increase -decrease -stay the same - answerDecrease Which of the following words describes what economics is about best: -money -unemployment -choice -government - answerChoice Good X is a substitute in production for good Y. Suppose the price of X increased. What will happen to the equilibrium quantity of good Y? -increase -decrease -change ambiguously - answerDecrease Good X is a complement for good Y. Suppose the price of X increased. What will happen to the equilibrium price of good Y? -increase -decrease -change ambiguously - answerDecrease Supposed a price of good X increased. Holding everything else constant the producer surplus will -increase -decrease