ACCURACY IS GUARANTEED
unt Econ 1100 Exam 1 Questions with
Detailed Verified Answers for Accuracy
Question: The primary difference between a change in supply
and a change in the quantity supplied is:
Answer: a change in quantity supplied is caused by a change in
the price of the good itself, and a change in supply is caused by
a change in a non-price determinant of supply
Question: Which of the following will cause a decrease in
the demand for batteries?
Answer: An increase in the price of digital cameras, a
complement for batteries
Question: Based on the information in the table below, the
opportunity cost of producing one clock in Mexico is:
Clock Radio
Spain 4 hours 2 hours
Mexico 3 hours 6 hours
Answer: 1/2 radio.
, ACCURACY IS GUARANTEED
Question: Which of the following is a normative
microeconomic statement?
Answer: Government should lower the taxes paid by small
businesses.
Question: An outward shift of a production possibilities
frontier illustrates that:
Answer: economic growth has occurred.
Question: If the demand for electricity is inelastic but not
perfectly inelastic, a 10% increase in the price of electricity is
likely to:
Answer: lead to a decrease in the quantity demanded of
electricity of less than 10%.
Question: If quantity demanded is 30 when price is $3 and
quantity demanded is 20 when price is $5, then total revenue
__________ if price increases from $3 to $5, implying that
demand is _________.
Answer: increases; inelastic
Question: In the market for used cars, a surplus of used cars
would, ceteris paribus:
Answer: put downward pressure on the price of used cars.
unt Econ 1100 Exam 1 Questions with
Detailed Verified Answers for Accuracy
Question: The primary difference between a change in supply
and a change in the quantity supplied is:
Answer: a change in quantity supplied is caused by a change in
the price of the good itself, and a change in supply is caused by
a change in a non-price determinant of supply
Question: Which of the following will cause a decrease in
the demand for batteries?
Answer: An increase in the price of digital cameras, a
complement for batteries
Question: Based on the information in the table below, the
opportunity cost of producing one clock in Mexico is:
Clock Radio
Spain 4 hours 2 hours
Mexico 3 hours 6 hours
Answer: 1/2 radio.
, ACCURACY IS GUARANTEED
Question: Which of the following is a normative
microeconomic statement?
Answer: Government should lower the taxes paid by small
businesses.
Question: An outward shift of a production possibilities
frontier illustrates that:
Answer: economic growth has occurred.
Question: If the demand for electricity is inelastic but not
perfectly inelastic, a 10% increase in the price of electricity is
likely to:
Answer: lead to a decrease in the quantity demanded of
electricity of less than 10%.
Question: If quantity demanded is 30 when price is $3 and
quantity demanded is 20 when price is $5, then total revenue
__________ if price increases from $3 to $5, implying that
demand is _________.
Answer: increases; inelastic
Question: In the market for used cars, a surplus of used cars
would, ceteris paribus:
Answer: put downward pressure on the price of used cars.
