econ301 Exam 2025 Questions and
Answers
The principle economic difference between a competitive and a non-competitive
market is - --CORRECT ANSWER--the extent to which any firm can influence
the price of the product
______ questions have to do with explanation and prediction, ______ questions
have to do with what ought to be - --CORRECT ANSWER--positive; normative
T/F: Economic theories are used to explain observed phenomena by educing from
a set of basis rules & assumptions - --CORRECT ANSWER--T
T/F: Economic theories use value judgments to determine which people ought to
pay more taxes - --CORRECT ANSWER--F
In a perfectly competitive market: - --CORRECT ANSWER--No single buyer or
seller can significantly affect the market price
To arbitrage a price difference between two markets, you should: - --CORRECT
ANSWER--Buy low, sell high
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, A key factor that determines the geographic extent of a housing market is the
distance that commuters are willing to travel from home to work. Which of the
following events would NOT help to expand the geographic extent of the housing
market in a metropolitan area? - --CORRECT ANSWER--State gasoline increases
Govt. passed a standard, which regulates dental procedures. Regulation is designed
to minimized transmission of infectious disease from patient to dental worker.
Effect of the regulation increases cost of providing dental care and to ease the fear
of going in. - --CORRECT ANSWER--Supply shifts to the left, and demand shifts
to the right
You are analying the demand for good X. Which of the following will result in a
shift to the right of the demand curve for X? - --CORRECT ANSWER--An
increase in the price of a good that is a substitute for X
T/F: With a negative sloping demand curve, demand becomes more inelastic as
price declines - --CORRECT ANSWER--T
Which of the following will NOT cause a rightward shift in the demand curve for
beer? - --CORRECT ANSWER--A change in the price of beer
With a downward sloping demand curve, if the quantity of bananas demanded in
the U.S. tends to decrease as income rises. Under this condition, we expect that an
increase in consumer income shifts the demand cure for bananas: - --CORRECT
ANSWER--Leftward
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Answers
The principle economic difference between a competitive and a non-competitive
market is - --CORRECT ANSWER--the extent to which any firm can influence
the price of the product
______ questions have to do with explanation and prediction, ______ questions
have to do with what ought to be - --CORRECT ANSWER--positive; normative
T/F: Economic theories are used to explain observed phenomena by educing from
a set of basis rules & assumptions - --CORRECT ANSWER--T
T/F: Economic theories use value judgments to determine which people ought to
pay more taxes - --CORRECT ANSWER--F
In a perfectly competitive market: - --CORRECT ANSWER--No single buyer or
seller can significantly affect the market price
To arbitrage a price difference between two markets, you should: - --CORRECT
ANSWER--Buy low, sell high
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, A key factor that determines the geographic extent of a housing market is the
distance that commuters are willing to travel from home to work. Which of the
following events would NOT help to expand the geographic extent of the housing
market in a metropolitan area? - --CORRECT ANSWER--State gasoline increases
Govt. passed a standard, which regulates dental procedures. Regulation is designed
to minimized transmission of infectious disease from patient to dental worker.
Effect of the regulation increases cost of providing dental care and to ease the fear
of going in. - --CORRECT ANSWER--Supply shifts to the left, and demand shifts
to the right
You are analying the demand for good X. Which of the following will result in a
shift to the right of the demand curve for X? - --CORRECT ANSWER--An
increase in the price of a good that is a substitute for X
T/F: With a negative sloping demand curve, demand becomes more inelastic as
price declines - --CORRECT ANSWER--T
Which of the following will NOT cause a rightward shift in the demand curve for
beer? - --CORRECT ANSWER--A change in the price of beer
With a downward sloping demand curve, if the quantity of bananas demanded in
the U.S. tends to decrease as income rises. Under this condition, we expect that an
increase in consumer income shifts the demand cure for bananas: - --CORRECT
ANSWER--Leftward
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
