ECN 221 MICRO FINAL EXAM WITH 100% VERIFIED SOLUTIONS
How would a change in the meeting time of the introductory economics course, say from
11:00 AM to 7:30 AM, alter the decision to attend lectures by a student? - ANSWER A
change in the meeting time of the course from 11:00 AM to 7:30 AM reduces a student's
incentive to attend the class.
The Following Statement is WRONG
"Why the government should provide such goods as health care, education, and
highways is that it can provide them for free."
Which of the following are true for the statement? Select all that apply. - ANSWER
-Governments must make trade-offs when supplying these services.
-This statement is not true since through the provision of these services, governments
collect tax revenues.
Which of the following is a true statement about a market economy? - ANSWER
Resources are allocated through the price mechanism.
Maria is giving a speech and says the following: "The economic way of thinking stresses
that good intentions lead to sound policy." How would you evaluate this statement?
Check all that apply. - ANSWER -The statement is false because a policy motivated by
good intentions may have unintended negative consequences.
- The statement is false because sound economic reasoning is necessary to predict the
unintended consequences of policies based on good intentions.
True or False: Marginal analysis involves comparing the additional or extra benefit
derived from consuming an additional unit of a product or service to the additional cost
of consuming that unit of the product or service. - ANSWER True
True or False: Economizing behavior involves choosing the option that brings the
greatest satisfaction at the least cost. - ANSWER True
, Consider that Francis says the following:
"Positive economics can't help us decide which of two agricultural policies is better.
Therefore, it is of no use to policy makers.
Which of the following best describes this statement? - ANSWER This statement is false
because positive economics is a matter of verifiable statements that are assessable
with data, and therefore positive economics can be used to determine which
agricultural policy is more effective in reaching a given goal.
A policymaker who believes the effect that a policy has on one person will be the same
effect that the policy will have on all people in the economy is - ANSWER committing the
fallacy of composition
Which of the following are positive rather than normative statements? Select all of the
options that apply. - ANSWER -There are two policies aimed at reducing the
consumption of alcohol. Policy A reduces the quantity of alcohol consumed more than
does policy B.
-If the price of beer increases, people will drink less beer.
Suppose the government increases the permissible minimum wage to $15 per hour.
Which of the following best describes a secondary effect that is likely to occur as a
consequence of this action? - ANSWER The increase in the minimum wage could lead to
a rise in the country's poverty level as businesses hire fewer workers due to being
unable to pay the higher wages.
Suppose Kyoko is a policymaker in the state of Argomix and she believes that air and
water pollution should be reduced to zero.
Which of the following is true? - ANSWER It is laudable that a policymaker would want to
reduce air and water pollution to zero, but such a policy will almost surely have
undesirable side consequences.
Jones sells a used car to Smith for $5,000.
Consider the following statement:
How would a change in the meeting time of the introductory economics course, say from
11:00 AM to 7:30 AM, alter the decision to attend lectures by a student? - ANSWER A
change in the meeting time of the course from 11:00 AM to 7:30 AM reduces a student's
incentive to attend the class.
The Following Statement is WRONG
"Why the government should provide such goods as health care, education, and
highways is that it can provide them for free."
Which of the following are true for the statement? Select all that apply. - ANSWER
-Governments must make trade-offs when supplying these services.
-This statement is not true since through the provision of these services, governments
collect tax revenues.
Which of the following is a true statement about a market economy? - ANSWER
Resources are allocated through the price mechanism.
Maria is giving a speech and says the following: "The economic way of thinking stresses
that good intentions lead to sound policy." How would you evaluate this statement?
Check all that apply. - ANSWER -The statement is false because a policy motivated by
good intentions may have unintended negative consequences.
- The statement is false because sound economic reasoning is necessary to predict the
unintended consequences of policies based on good intentions.
True or False: Marginal analysis involves comparing the additional or extra benefit
derived from consuming an additional unit of a product or service to the additional cost
of consuming that unit of the product or service. - ANSWER True
True or False: Economizing behavior involves choosing the option that brings the
greatest satisfaction at the least cost. - ANSWER True
, Consider that Francis says the following:
"Positive economics can't help us decide which of two agricultural policies is better.
Therefore, it is of no use to policy makers.
Which of the following best describes this statement? - ANSWER This statement is false
because positive economics is a matter of verifiable statements that are assessable
with data, and therefore positive economics can be used to determine which
agricultural policy is more effective in reaching a given goal.
A policymaker who believes the effect that a policy has on one person will be the same
effect that the policy will have on all people in the economy is - ANSWER committing the
fallacy of composition
Which of the following are positive rather than normative statements? Select all of the
options that apply. - ANSWER -There are two policies aimed at reducing the
consumption of alcohol. Policy A reduces the quantity of alcohol consumed more than
does policy B.
-If the price of beer increases, people will drink less beer.
Suppose the government increases the permissible minimum wage to $15 per hour.
Which of the following best describes a secondary effect that is likely to occur as a
consequence of this action? - ANSWER The increase in the minimum wage could lead to
a rise in the country's poverty level as businesses hire fewer workers due to being
unable to pay the higher wages.
Suppose Kyoko is a policymaker in the state of Argomix and she believes that air and
water pollution should be reduced to zero.
Which of the following is true? - ANSWER It is laudable that a policymaker would want to
reduce air and water pollution to zero, but such a policy will almost surely have
undesirable side consequences.
Jones sells a used car to Smith for $5,000.
Consider the following statement:
