Eco 202 Final Exam – Questions With Solutions
The three fundamental questions that any economy must address are
A) how much will be saved; what will be produced; and how can these goods
and services be fairly distributed
B) what goods and services to produce; how will these goods and services be
produced; and who will receives them?
C) what will be the prices of goods and services; how will these goods and
services be produced; and who will receive them?
D) who gets jobs; what wages do workers earn; and who owns what property?
Right Ans - C
In economics, choices must be made because we live in a world of
A) scarcity
B) unemployment
C) greed
D) unlimited resources Right Ans - A
The term_____ in economics refers to a group of buyers and sellers of a product
and the arrangement by which they come together to trade
A) collective
B) market
C) trade-off
D) cooperative Right Ans - B
Which of the following statement is true about profit?
A) profit refers to the revenue received from the sale of a quantity of goods
B) the term " accounting profit" and "economic profit" can be used
interchangeably
C) profit is the difference between revenue and cost
D) profit is calculated by multiplying price and quantity sold Right Ans - C
The production possibilities frontier model shows that
A) a market economy is more efficient in producing goods and services than is
a centrally planned economy
B) if all resources are fully and efficiently utilized, more good can be produced
only by producing less of another good
, C) economic growth can only be achieved by free market economies
D) if consumers decide to buy more of a product its price will increase
Right Ans - B
which of the following is NOT an opportunity cost of attending college?
A) the alternative uses of the time you spend studying
B) the cost of the food that you consume while you are attending college
C) the tuition you pay
D) the income you could have earned if you didn't attend college Right Ans
-B
if the Apple iPhone and the Samsung Galaxy are considered substitutes, then,
other things equal, an increase in the price of the iPhone will
A) increase the demand for the Galaxy
B) increase the quantity demanded for the Galaxy
C) increase the quantity demanded for the iPhone
D) decrease the demand for the iPhone Right Ans - A
a movement along the demand curve for toothpaste would be caused by
A) a change in the price of toothbrushes
B) a change in the price of toothpaste
C) a change in population
D) a change in consumer income Right Ans - B
if a decrease in income leads to an increase in the demand for sardines, then
sardines are
A) a necessity
B) a normal good
C) an inferior good
D) a neutral good Right Ans - C
which of the following would cause an increase in the supply of peanut butter?
A) an increase the price of a product that producers sell instead of peanut
butter
B) an increase in the price of peanut butter
C) an increase in the number of firms that produce peanut butter
D) a decrease in the price of grape jelly Right Ans - C
The three fundamental questions that any economy must address are
A) how much will be saved; what will be produced; and how can these goods
and services be fairly distributed
B) what goods and services to produce; how will these goods and services be
produced; and who will receives them?
C) what will be the prices of goods and services; how will these goods and
services be produced; and who will receive them?
D) who gets jobs; what wages do workers earn; and who owns what property?
Right Ans - C
In economics, choices must be made because we live in a world of
A) scarcity
B) unemployment
C) greed
D) unlimited resources Right Ans - A
The term_____ in economics refers to a group of buyers and sellers of a product
and the arrangement by which they come together to trade
A) collective
B) market
C) trade-off
D) cooperative Right Ans - B
Which of the following statement is true about profit?
A) profit refers to the revenue received from the sale of a quantity of goods
B) the term " accounting profit" and "economic profit" can be used
interchangeably
C) profit is the difference between revenue and cost
D) profit is calculated by multiplying price and quantity sold Right Ans - C
The production possibilities frontier model shows that
A) a market economy is more efficient in producing goods and services than is
a centrally planned economy
B) if all resources are fully and efficiently utilized, more good can be produced
only by producing less of another good
, C) economic growth can only be achieved by free market economies
D) if consumers decide to buy more of a product its price will increase
Right Ans - B
which of the following is NOT an opportunity cost of attending college?
A) the alternative uses of the time you spend studying
B) the cost of the food that you consume while you are attending college
C) the tuition you pay
D) the income you could have earned if you didn't attend college Right Ans
-B
if the Apple iPhone and the Samsung Galaxy are considered substitutes, then,
other things equal, an increase in the price of the iPhone will
A) increase the demand for the Galaxy
B) increase the quantity demanded for the Galaxy
C) increase the quantity demanded for the iPhone
D) decrease the demand for the iPhone Right Ans - A
a movement along the demand curve for toothpaste would be caused by
A) a change in the price of toothbrushes
B) a change in the price of toothpaste
C) a change in population
D) a change in consumer income Right Ans - B
if a decrease in income leads to an increase in the demand for sardines, then
sardines are
A) a necessity
B) a normal good
C) an inferior good
D) a neutral good Right Ans - C
which of the following would cause an increase in the supply of peanut butter?
A) an increase the price of a product that producers sell instead of peanut
butter
B) an increase in the price of peanut butter
C) an increase in the number of firms that produce peanut butter
D) a decrease in the price of grape jelly Right Ans - C
