EC 202 Final Exam (test) AND PRACTICE EXAM QUESTIONS 2025
NEWEST ACTUAL EXAM COMPLETE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS)
ALREADY GRADED A+
An advance in technology would shift the
A. supply curve to the right.
B. supply curve to the left.
C. demand curve to the right.
D. demand curve to the left. - (answers)A
Which of the following would shift the supply curve of iPhones to the right?
心的坚强决定了我们的命运。当
A. a decrease in wages paid to workers making the iPhones.
我们面对挫折时，是一颗不屈的
B. more advertising for iPhones . 心让我们勇敢前行
C. an increase in the price of iPads
D. an increase in the price of iPhones - (answers)B
Suppose that cold temperatures cause a decrease in the supply of tea. What should
happen in the market for coffee, assuming tea and coffee are substitutes?
A. The equilibrium price will increase, and the equilibrium quantity will decrease.
B. The equilibrium price will decrease, and the equilibrium quantity will increase.
C. Both the equilibrium price and quantity will increase.
D. Both the equilibrium price and quantity will decrease. - (answers)C
When the government imposes a binding price ceiling, it causes a surplus of the good -
(answers)False
,A $2 tax levied on the producers of a good has the same effect on buyers and sellers as a $2 tax
levied on the consumers of the good - (answers)True
Rent controls cause
A. shortages of apartments in both the short run and long run of similar magnitudes.
B. surpluses of apartments in both the short run and long run of similar magnitudes.
C. shortages of apartments which are larger in the short run than in the long run.
D. shortages of apartments which are larger in the long run than in the short run. - (answers)D
Which of the following would not be a result of a binding price ceiling on child care?
A. a quantity of child care demanded greater than quantity supplied
B. a decrease in quality of care
C. an increase in the quantity of child care supplied
心的坚强决定了我们的命运。当
D. a lower price of childcare. - (answers)C
我们面对挫折时，是一颗不屈的
心让我们勇敢前行
Refer to the labor market graph. The imposition of an $8 minimum wage would cause
A. tax revenues to increase by $2 per worker.
B. unemployment of 35 labor hours.
C. a labor shortage of 35 labor hours.
D. no change in the equilibrium wage and employment because the minimum wage is
not binding. - (answers)B
The market for gluten-free breakfast cereal is shown in the graph above. Suppose the
government enacts a $2 tax per unit, imposed on the sellers. The policy will cause:
A. the equilibrium price of gluten-free breakfast cereals to rise by $2.
B. buyers to bear a higher burden of the tax than sellers.
C. buyers and sellers to each bear a $1 burden of the tax.
,D. a shortage of gluten-free breakfast cereals. - (answers)C
Suppose that the City of Bloomington imposes a $1 per-tire recycling fee on buyers
whenever they purchase a new tire. We can illustrate the tax on a graph by shifting the
demand curve
A. down by $1; the price received by sellers would fall by $1.
B. up by $1; the price received by sellers would rise by $1.
C. down by $1; the price paid by buyers would rise by less than $1.
D. up by $1; the price paid by buyers would fall by less than $1. - (answers)C
The market for gluten-free breakfast cereal is shown in the graph. The after-tax price
paid by buyers and price received by sellers are, respectively,
A. $4.00 $6.00 心的坚强决定了我们的命运。当
B. $5.00 $6.00 我们面对挫折时，是一颗不屈的
C. $6.00 $5.00 心让我们勇敢前行
D. $6.00 $4.00 - (answers)D
Assuming the graph is drawn to scale, which of the following is true regarding the burden
of the tax in market above?
A. Buyers pay a larger share of the tax because demand is more elastic than supply.
B. Sellers pay a larger share of the tax because supply is more inelastic than demand.
C. Sellers pay a larger share of the tax because supply is more elastic than demand.
D. Buyers pay a larger share of the tax because demand is more inelastic than supply. -
(answers)B
In 2015, the minimum wage according to federal law was $7.25 per hour. Increasing
minimum wage to $8 per hour (approximately a 10% increase) will probably lead to:
, A. higher income for the working poor
B. 1-3% increase in teenage unemployment
C. more teenagers dropping out of school and preventing some unskilled workers from
getting the on-the-job training they need
D. All of the above - (answers)D
Refer to the graph. If the price falls from P2 to P1, area B represents the
A. total increase in consumer surplus.
B. additional consumer surplus to initial consumers.
C. consumer surplus to new consumers.
D. additional producer surplus to initial producers. - (answers)B
心的坚强决定了我们的命运。当
Suppose you inherit an antique doll from your Great Aunt Sadie. The doll has a
sentimental value of $100 to you. 我们面对挫折时，是一颗不屈的
Jane is a collector who is willing to pay $800 for your
doll. If you sell the doll to Jane for心让我们勇敢前行
$600, your producer surplus is ___ and Jane's
consumer surplus is _____, respectively:
A. $800, $800.
B. $700, $900.
C. $500, $200.
D. $200, $700. - (answers)C
The equilibrium price in the market for gluten-free muffins is $5, and at this price, 300
gluten-free muffins are bought and sold. At a quantity of 200 gluten-free muffins, the
market is not efficient because:
A. the value to buyers exceeds the cost to sellers.
B. the sum of consumer and producer surplus is not maximized.
C. consumers would gain additional consumer surplus if they would purchase 100 more
NEWEST ACTUAL EXAM COMPLETE EXAM QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS)
ALREADY GRADED A+
An advance in technology would shift the
A. supply curve to the right.
B. supply curve to the left.
C. demand curve to the right.
D. demand curve to the left. - (answers)A
Which of the following would shift the supply curve of iPhones to the right?
心的坚强决定了我们的命运。当
A. a decrease in wages paid to workers making the iPhones.
我们面对挫折时，是一颗不屈的
B. more advertising for iPhones . 心让我们勇敢前行
C. an increase in the price of iPads
D. an increase in the price of iPhones - (answers)B
Suppose that cold temperatures cause a decrease in the supply of tea. What should
happen in the market for coffee, assuming tea and coffee are substitutes?
A. The equilibrium price will increase, and the equilibrium quantity will decrease.
B. The equilibrium price will decrease, and the equilibrium quantity will increase.
C. Both the equilibrium price and quantity will increase.
D. Both the equilibrium price and quantity will decrease. - (answers)C
When the government imposes a binding price ceiling, it causes a surplus of the good -
(answers)False
,A $2 tax levied on the producers of a good has the same effect on buyers and sellers as a $2 tax
levied on the consumers of the good - (answers)True
Rent controls cause
A. shortages of apartments in both the short run and long run of similar magnitudes.
B. surpluses of apartments in both the short run and long run of similar magnitudes.
C. shortages of apartments which are larger in the short run than in the long run.
D. shortages of apartments which are larger in the long run than in the short run. - (answers)D
Which of the following would not be a result of a binding price ceiling on child care?
A. a quantity of child care demanded greater than quantity supplied
B. a decrease in quality of care
C. an increase in the quantity of child care supplied
心的坚强决定了我们的命运。当
D. a lower price of childcare. - (answers)C
我们面对挫折时，是一颗不屈的
心让我们勇敢前行
Refer to the labor market graph. The imposition of an $8 minimum wage would cause
A. tax revenues to increase by $2 per worker.
B. unemployment of 35 labor hours.
C. a labor shortage of 35 labor hours.
D. no change in the equilibrium wage and employment because the minimum wage is
not binding. - (answers)B
The market for gluten-free breakfast cereal is shown in the graph above. Suppose the
government enacts a $2 tax per unit, imposed on the sellers. The policy will cause:
A. the equilibrium price of gluten-free breakfast cereals to rise by $2.
B. buyers to bear a higher burden of the tax than sellers.
C. buyers and sellers to each bear a $1 burden of the tax.
,D. a shortage of gluten-free breakfast cereals. - (answers)C
Suppose that the City of Bloomington imposes a $1 per-tire recycling fee on buyers
whenever they purchase a new tire. We can illustrate the tax on a graph by shifting the
demand curve
A. down by $1; the price received by sellers would fall by $1.
B. up by $1; the price received by sellers would rise by $1.
C. down by $1; the price paid by buyers would rise by less than $1.
D. up by $1; the price paid by buyers would fall by less than $1. - (answers)C
The market for gluten-free breakfast cereal is shown in the graph. The after-tax price
paid by buyers and price received by sellers are, respectively,
A. $4.00 $6.00 心的坚强决定了我们的命运。当
B. $5.00 $6.00 我们面对挫折时，是一颗不屈的
C. $6.00 $5.00 心让我们勇敢前行
D. $6.00 $4.00 - (answers)D
Assuming the graph is drawn to scale, which of the following is true regarding the burden
of the tax in market above?
A. Buyers pay a larger share of the tax because demand is more elastic than supply.
B. Sellers pay a larger share of the tax because supply is more inelastic than demand.
C. Sellers pay a larger share of the tax because supply is more elastic than demand.
D. Buyers pay a larger share of the tax because demand is more inelastic than supply. -
(answers)B
In 2015, the minimum wage according to federal law was $7.25 per hour. Increasing
minimum wage to $8 per hour (approximately a 10% increase) will probably lead to:
, A. higher income for the working poor
B. 1-3% increase in teenage unemployment
C. more teenagers dropping out of school and preventing some unskilled workers from
getting the on-the-job training they need
D. All of the above - (answers)D
Refer to the graph. If the price falls from P2 to P1, area B represents the
A. total increase in consumer surplus.
B. additional consumer surplus to initial consumers.
C. consumer surplus to new consumers.
D. additional producer surplus to initial producers. - (answers)B
心的坚强决定了我们的命运。当
Suppose you inherit an antique doll from your Great Aunt Sadie. The doll has a
sentimental value of $100 to you. 我们面对挫折时，是一颗不屈的
Jane is a collector who is willing to pay $800 for your
doll. If you sell the doll to Jane for心让我们勇敢前行
$600, your producer surplus is ___ and Jane's
consumer surplus is _____, respectively:
A. $800, $800.
B. $700, $900.
C. $500, $200.
D. $200, $700. - (answers)C
The equilibrium price in the market for gluten-free muffins is $5, and at this price, 300
gluten-free muffins are bought and sold. At a quantity of 200 gluten-free muffins, the
market is not efficient because:
A. the value to buyers exceeds the cost to sellers.
B. the sum of consumer and producer surplus is not maximized.
C. consumers would gain additional consumer surplus if they would purchase 100 more
