UH Mānoa ECON 130 Midterm 1 || with Complete
Solutions.
economics is best defined as the study of correct answers the choices that societies, and the
people and institutions that make up societies, make in dealing with issues of scarcity
example of microeconomics issue correct answers the increase in quantity of wheat grown in the
us
to economists, rational choice correct answers is a choice that uses the available resources to best
achieve the objective of the person making the choice
a linear relationship correct answers when graphed is a straight line and can also have a positive
or negative relationship
an opportunity cost is correct answers the benefits of the highest valued alternative forgone
the cost of a one unit increase in an activity is called the correct answers marginal cost
to make a rational choice, a person must correct answers compare the extra benefits of one or
more unit to the extra cost of one more unit
if the change in y=10 and the change in x =3 correct answers there is a positive relationship
between y and x
correct statement: correct answers when a line slopes upward moving to the right, the variable
measured on the x axis and the variable measured on the y axis are directly related
if change in y = -4 and change in x =2 correct answers there is a negative relationship between x
and y
consider a diagram in which the variable measured on the y axis remains constant while the
variable on the x axis increases. the graph of these two variables is a correct answers horizontal
line
as a curve approaches the maximum point, the slope will correct answers be positive, and then
negative after the maximum point
with y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight
line is defined as correct answers (change in y)/(change in x)
a curve with a positive but decreasing slope represents a relationship where every time the
variable measured along the horizontal axis increased by one unit, the variable measured along
the vertical axis correct answers increases by a decreasing amount
, if the quantity variable on the y-axis increases by 10 when the quantity of the variable on the x-
axis decreases by 2, then the economic intuition of the slope of the curve is: correct answers 1
unit increase in x variable leads to 5 unit decrease in y variables
The figure below shows the relationship between the time a student spends studying and the
student's GPA that semester. The slope of the relationship at point A ________ the slope at point
B correct answers is greater than
In the figure below, which of the following transactions take place in the factor markets?
i.Michael, a student, orders a computer from Dell online. ii.Peter gets a job at a Wal-Mart store.
iii.Apple Computer opens a new store in Georgia. correct answers ii and iii
According to the Law of Demand, the demand curve for a good wil correct answers slope
downward
As the price of a good increases, the change in the quantity demanded can be shown by correct
answers moving up along the same demand curve.
Refer to Scenario 1: Does the above equation satisfy the Law of Demand? correct answers Yes,
because as the price of taco increases by $1, quantity demanded of taco decreases by 3 units
Refer to Scenario 1: What is the relationship between burritos and tacos, from the point of view
of consumers? correct answers They are substitutes
Suppose a market were currently at equilibrium. A rightward shift of the supply curve would
cause a(n) correct answers decrease in price but an increase in quantity
What happens to the demand for a good if a complement's price increases? correct answers The
demand decreases and the demand curve shifts leftward.
Which of the following is a correct description of the supply curve
i. The supply curve is also the marginal cost curve. ii. The supply curve shows the dollars' worth
of other goods that we must sacrifice to produce another unit of a good. iii. The supply curve
shows the additional cost of producing another unit of a good correct answers i, ii, and iii
The expression "increase in quantity supplied" is illustrated graphically as a correct answers
movement up along the supply curve
If the demand and supply curve for computers are: Qd = 100 - 6P QS = 28 + 3P where P is the
price of computers. What is the Price and quantity of computers bought and sold at equilibrium?
correct answers Equilibrium Price $ 8; Equilibrium Quantity 52 units
Refer to Scenario 2. If P = $15, which of the following is true? correct answers There is a
shortage equal to 30
Solutions.
economics is best defined as the study of correct answers the choices that societies, and the
people and institutions that make up societies, make in dealing with issues of scarcity
example of microeconomics issue correct answers the increase in quantity of wheat grown in the
us
to economists, rational choice correct answers is a choice that uses the available resources to best
achieve the objective of the person making the choice
a linear relationship correct answers when graphed is a straight line and can also have a positive
or negative relationship
an opportunity cost is correct answers the benefits of the highest valued alternative forgone
the cost of a one unit increase in an activity is called the correct answers marginal cost
to make a rational choice, a person must correct answers compare the extra benefits of one or
more unit to the extra cost of one more unit
if the change in y=10 and the change in x =3 correct answers there is a positive relationship
between y and x
correct statement: correct answers when a line slopes upward moving to the right, the variable
measured on the x axis and the variable measured on the y axis are directly related
if change in y = -4 and change in x =2 correct answers there is a negative relationship between x
and y
consider a diagram in which the variable measured on the y axis remains constant while the
variable on the x axis increases. the graph of these two variables is a correct answers horizontal
line
as a curve approaches the maximum point, the slope will correct answers be positive, and then
negative after the maximum point
with y measured on the vertical axis and x measured on the horizontal axis, the slope of a straight
line is defined as correct answers (change in y)/(change in x)
a curve with a positive but decreasing slope represents a relationship where every time the
variable measured along the horizontal axis increased by one unit, the variable measured along
the vertical axis correct answers increases by a decreasing amount
, if the quantity variable on the y-axis increases by 10 when the quantity of the variable on the x-
axis decreases by 2, then the economic intuition of the slope of the curve is: correct answers 1
unit increase in x variable leads to 5 unit decrease in y variables
The figure below shows the relationship between the time a student spends studying and the
student's GPA that semester. The slope of the relationship at point A ________ the slope at point
B correct answers is greater than
In the figure below, which of the following transactions take place in the factor markets?
i.Michael, a student, orders a computer from Dell online. ii.Peter gets a job at a Wal-Mart store.
iii.Apple Computer opens a new store in Georgia. correct answers ii and iii
According to the Law of Demand, the demand curve for a good wil correct answers slope
downward
As the price of a good increases, the change in the quantity demanded can be shown by correct
answers moving up along the same demand curve.
Refer to Scenario 1: Does the above equation satisfy the Law of Demand? correct answers Yes,
because as the price of taco increases by $1, quantity demanded of taco decreases by 3 units
Refer to Scenario 1: What is the relationship between burritos and tacos, from the point of view
of consumers? correct answers They are substitutes
Suppose a market were currently at equilibrium. A rightward shift of the supply curve would
cause a(n) correct answers decrease in price but an increase in quantity
What happens to the demand for a good if a complement's price increases? correct answers The
demand decreases and the demand curve shifts leftward.
Which of the following is a correct description of the supply curve
i. The supply curve is also the marginal cost curve. ii. The supply curve shows the dollars' worth
of other goods that we must sacrifice to produce another unit of a good. iii. The supply curve
shows the additional cost of producing another unit of a good correct answers i, ii, and iii
The expression "increase in quantity supplied" is illustrated graphically as a correct answers
movement up along the supply curve
If the demand and supply curve for computers are: Qd = 100 - 6P QS = 28 + 3P where P is the
price of computers. What is the Price and quantity of computers bought and sold at equilibrium?
correct answers Equilibrium Price $ 8; Equilibrium Quantity 52 units
Refer to Scenario 2. If P = $15, which of the following is true? correct answers There is a
shortage equal to 30
