ECON 2102 - Exam #1 || with Accurate Answers 100%.
Economics can be defined as the study of correct answers How scarce resources are allocated.
Opportunity cost may be defined as the correct answers Goods or services that are forgone in
order to obtain something else.
The opportunity cost of studying for an economics test is correct answers The activity that is best
alternative use of your time.
Which of the following is an assumption under which the production possibilities curve is
drawn? correct answers The supply of resources is fixed.
A point on a nation's production possibilities curve represents correct answers The full
employment of resources to achieve a particular combination of goods and services.
If an economy experiences constant opportunity costs with respect to two goods, then the
production possibilities curve between the two goods will be? correct answers A straight,
downward-sloping line.
The production possibilities curve illustrates correct answers The limitations that exist because of
scarce resources.
A factor market is any place or process where correct answers Land, labor, or capital is bought
and sold.
Which of the following is a market transaction? correct answers A college student purchases a
laptop computer.
A lower quantity demanded of a good reflects, ceteris paribus, correct answers A higher price of
the good.
According to the law of demand, a demand curve correct answers Has a negative slope.
Ceteris paribus, which of the following would generally cause an increase in the demand curve
for new automobiles? correct answers An increase in consumers' income.
Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now
there should be correct answers A decrease in the demand for airline tickets.
Which determinant of demand changes in the personal computer market as more individuals
become interested in "surfing the Internet"? correct answers Number of buyers.
Ceteris paribus, which of the following would you expect to have no effect on the demand curve
for new automobiles? correct answers An increase in the price of new automobiles.
, Ceteris paribus means correct answers Holding everything constant except for the variables you
are interested in examining.
Assume a series of forest fires reduces the supply of lumber, which is an input in the production
of wooden bats. Baseballs and wooden bats are complements. If the price of wooden bats
increases, we can expect the correct answers Demand for baseballs to decrease.
In economics, scarcity means that correct answers Society's desires exceed resources available.
Ceteris paribus, if the price of a digital camera rises, then we can expect correct answers A
decrease in the quantity demanded of digital cameras.
If there are only two airlines that fly between Dallas and New Orleans, what will happen in the
market for one airline if the other one goes out of business? correct answers The demand curve
will shift to the right.
Assume that pencils and pens are substitutes. If the price of pencils rises, then we will see correct
answers An increase in the demand for pens.
Which of the following is a determinant of supply? correct answers The prices of the factors of
production.
A change in the price of a good correct answers Results in a change in quantity supplied.
Assume that steel is used to produce monkey wrenches. Ceteris paribus, if the price of steel rises,
then correct answers The supply curve for monkey wrenches will shift to the left.
The equilibrium price in a market is found where correct answers The market supply curve
intersects the market demand curve.
A market is said to be in equilibrium when correct answers The quantity demanded equals the
quantity supplied.
If a price ceiling is to be effective, it should be set correct answers Below the equilibrium price,
and it will create a market shortage.
Suppose both the demand for and supply of salsa increase (although not necessarily by the same
amount). What can we conclude about changes in the price and quantity of salsa? correct
answers The quantity increases but the change in the price cannot be determined.
When the demand for coffee increases, ceteris paribus, the equilibrium price will also increase
because correct answers A shortage exists at the old equilibrium price.
The federal government placed an upper limit on human organ prices, which is called a correct
answers Price ceiling.
Economics can be defined as the study of correct answers How scarce resources are allocated.
Opportunity cost may be defined as the correct answers Goods or services that are forgone in
order to obtain something else.
The opportunity cost of studying for an economics test is correct answers The activity that is best
alternative use of your time.
Which of the following is an assumption under which the production possibilities curve is
drawn? correct answers The supply of resources is fixed.
A point on a nation's production possibilities curve represents correct answers The full
employment of resources to achieve a particular combination of goods and services.
If an economy experiences constant opportunity costs with respect to two goods, then the
production possibilities curve between the two goods will be? correct answers A straight,
downward-sloping line.
The production possibilities curve illustrates correct answers The limitations that exist because of
scarce resources.
A factor market is any place or process where correct answers Land, labor, or capital is bought
and sold.
Which of the following is a market transaction? correct answers A college student purchases a
laptop computer.
A lower quantity demanded of a good reflects, ceteris paribus, correct answers A higher price of
the good.
According to the law of demand, a demand curve correct answers Has a negative slope.
Ceteris paribus, which of the following would generally cause an increase in the demand curve
for new automobiles? correct answers An increase in consumers' income.
Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now
there should be correct answers A decrease in the demand for airline tickets.
Which determinant of demand changes in the personal computer market as more individuals
become interested in "surfing the Internet"? correct answers Number of buyers.
Ceteris paribus, which of the following would you expect to have no effect on the demand curve
for new automobiles? correct answers An increase in the price of new automobiles.
, Ceteris paribus means correct answers Holding everything constant except for the variables you
are interested in examining.
Assume a series of forest fires reduces the supply of lumber, which is an input in the production
of wooden bats. Baseballs and wooden bats are complements. If the price of wooden bats
increases, we can expect the correct answers Demand for baseballs to decrease.
In economics, scarcity means that correct answers Society's desires exceed resources available.
Ceteris paribus, if the price of a digital camera rises, then we can expect correct answers A
decrease in the quantity demanded of digital cameras.
If there are only two airlines that fly between Dallas and New Orleans, what will happen in the
market for one airline if the other one goes out of business? correct answers The demand curve
will shift to the right.
Assume that pencils and pens are substitutes. If the price of pencils rises, then we will see correct
answers An increase in the demand for pens.
Which of the following is a determinant of supply? correct answers The prices of the factors of
production.
A change in the price of a good correct answers Results in a change in quantity supplied.
Assume that steel is used to produce monkey wrenches. Ceteris paribus, if the price of steel rises,
then correct answers The supply curve for monkey wrenches will shift to the left.
The equilibrium price in a market is found where correct answers The market supply curve
intersects the market demand curve.
A market is said to be in equilibrium when correct answers The quantity demanded equals the
quantity supplied.
If a price ceiling is to be effective, it should be set correct answers Below the equilibrium price,
and it will create a market shortage.
Suppose both the demand for and supply of salsa increase (although not necessarily by the same
amount). What can we conclude about changes in the price and quantity of salsa? correct
answers The quantity increases but the change in the price cannot be determined.
When the demand for coffee increases, ceteris paribus, the equilibrium price will also increase
because correct answers A shortage exists at the old equilibrium price.
The federal government placed an upper limit on human organ prices, which is called a correct
answers Price ceiling.
