ECON 1001 FINAL
EXAM with complete
verified solutions
By definition, economics is the study of - answer the choices people make to
attain their goals, given their scarce resources
Economics do all of the following except...
A) Portray reality in all its minute details
B) Make economic ideas explicit and concrete or use by decisions makers
C) Answer economic questions
D) Simplify some aspect o economic life - answer A) Portray reality in all its
minute details
In economics, the term _______ means "extra" or "incremental" - answer
marginal
If the marginal cost or the state of North Dakota to increase the speed limit
on its interstate highway to 100 mph is estimated to be $800 per day, then
North Dakota should increase the speed limit to 100 mph... - answer As long
as the marginal benefit received each day is just equal to or greater than
$800
Comparative advantage means the ability to produce a good or service.... -
answer At a lower opportunity cost than any other producer
Wisconsin gives up the opportunity to produce 1 bottle of wine for every 15
pounds of cheese it produces. For each bottle of wine that California
, produces, it gives up the opportunity to make 10 pounds o cheese. What is
true about the comparative advantage between the two states? - answer
California has the comparative advantage in wine
If a consumer receives 20 units o utility rom consuming two candy bars, and
25 units of utility rom consuming three candy bars, the marginal utility o the
third candy bar is... - answer 5 utils
If, as a person consumes more and more of a good, each additional unit adds
less satisfaction than the previous unit consumed, we are seeing the
workings of - answer The law of diminishing marginal utility
Marginal utility can be - answer Positive, negative, or zero
Consumers maximize total utility within their budget constraint by - answer
Buying the good with the largest marginal utility per dollar
The marginal utility per dollar that Harold Stratton receives from oranges is
greater than the marginal utility per dollar Harold receives rom pears. To
maximize his utility, what should Harold do? - answer He should buy fewer
pears and more oranges
When the price of ice cream cones increases from $2 to $3, quantity
demanded decreases rom 4 to 3 ice cream cones. This change in quantity
demanded is due to - answer The income and substitution effects
What is the endowment effect? - answer The tendency of people to be
unwilling to sell something they already own even if they are offered a price
that is greater than the price they would be willing to pay to buy the good if
they didn't already own it
Firms pay famous individuals to endorse their products because - answer
Apparently demand is affected not just by the number o people who use a
product but also by the type o person that uses the product
EXAM with complete
verified solutions
By definition, economics is the study of - answer the choices people make to
attain their goals, given their scarce resources
Economics do all of the following except...
A) Portray reality in all its minute details
B) Make economic ideas explicit and concrete or use by decisions makers
C) Answer economic questions
D) Simplify some aspect o economic life - answer A) Portray reality in all its
minute details
In economics, the term _______ means "extra" or "incremental" - answer
marginal
If the marginal cost or the state of North Dakota to increase the speed limit
on its interstate highway to 100 mph is estimated to be $800 per day, then
North Dakota should increase the speed limit to 100 mph... - answer As long
as the marginal benefit received each day is just equal to or greater than
$800
Comparative advantage means the ability to produce a good or service.... -
answer At a lower opportunity cost than any other producer
Wisconsin gives up the opportunity to produce 1 bottle of wine for every 15
pounds of cheese it produces. For each bottle of wine that California
, produces, it gives up the opportunity to make 10 pounds o cheese. What is
true about the comparative advantage between the two states? - answer
California has the comparative advantage in wine
If a consumer receives 20 units o utility rom consuming two candy bars, and
25 units of utility rom consuming three candy bars, the marginal utility o the
third candy bar is... - answer 5 utils
If, as a person consumes more and more of a good, each additional unit adds
less satisfaction than the previous unit consumed, we are seeing the
workings of - answer The law of diminishing marginal utility
Marginal utility can be - answer Positive, negative, or zero
Consumers maximize total utility within their budget constraint by - answer
Buying the good with the largest marginal utility per dollar
The marginal utility per dollar that Harold Stratton receives from oranges is
greater than the marginal utility per dollar Harold receives rom pears. To
maximize his utility, what should Harold do? - answer He should buy fewer
pears and more oranges
When the price of ice cream cones increases from $2 to $3, quantity
demanded decreases rom 4 to 3 ice cream cones. This change in quantity
demanded is due to - answer The income and substitution effects
What is the endowment effect? - answer The tendency of people to be
unwilling to sell something they already own even if they are offered a price
that is greater than the price they would be willing to pay to buy the good if
they didn't already own it
Firms pay famous individuals to endorse their products because - answer
Apparently demand is affected not just by the number o people who use a
product but also by the type o person that uses the product
