Principles of Microeconomics Final Exam
Practice Questions Already Graded A+
false - Answer Ceteris paribus means slopes down to the right (true or false)
a - Answer Italy doesn't process enough bauxite to produce aluminum foil. This is an example of
a. absolute scarcity
b. economic scarcity
b - Answer All of the following are variables that affect the demand for a product except
a. price of compliments
b. number of sellers
c. income of consumers
d. price of good x
d - Answer Which of the following is not one of the categories of resources that was given in class
a. capital
b. land
c. labor
d. production
e. entrepreneurship
b - Answer The Law of Demand
a. tells us the price of a good cannot be sold above the legal maximum
b. tells us that when the price of a good increases, demand for the good increases
c. tells us that a surplus of a good results in a store sale
d. tells us that producers can only sell products that have been obtained legally
,d - Answer To decide how to use our scarce resources to satisfy economic wants, our economy primarily
relies on
a. planning
b. political voting
c. production targets
d. prices
c - Answer Which of the following is not one of the reasons for the law of demand holding true
a. substitution effect
b. income effect
c. the law of diminishing returns
d. the law of diminishing marginal utility
true - Answer Abstraction is necessary in economics because there are so many variables to keep track
of (true or false)
false - Answer Microeconomics deals with the economic goals stability and equity (true or false)
b - Answer Every economy must answer four basic questions. Which of the following is not one of them?
a. how much to produce
b. who is going to produce
c. who to produce for
d. how to produce
c - Answer There are four investment opportunities available to a company with excess cash to invest:
an investment that pays 8%; 6%; 4%; and 2%. If the company were to choose the 6% option, what would
their opportunity cost be?
a. 2%
b. 6%
c. 8%
, d. 14%
true - Answer This is an example of a positive statement: Students should come to class every day (true
or false)
b - Answer Which of the following is consistent with the law of demand?
a. a decrease in the price of purses causes a decrease in the quantity of purses demanded
b. an increase in the price of shoes causes a decrease in the quantity of shoes demanded
c. an increase in the price of belts causes in increase in the quantity of belts demanded
d. a decrease in the price of lipstick causes no change in the quantity of lipstick demanded
b - Answer Which expression is another way of saying marginal benefit
a. total benefit
b. extra benefit
c. loss
d. profit
b - Answer In class, a list of concepts was constructed that you could see illustrated in the PPC. All of the
following concepts made it on the list except one. Which one?
a. scarcity
b. price
c. efficiency
d. choices
c - Answer In class, a list of concepts was constructed that you could see illustrated in the PPC. All of the
following concepts made it on the list except one. Which one?
a. scarcity
b. price
c. efficiency
d. choices
Practice Questions Already Graded A+
false - Answer Ceteris paribus means slopes down to the right (true or false)
a - Answer Italy doesn't process enough bauxite to produce aluminum foil. This is an example of
a. absolute scarcity
b. economic scarcity
b - Answer All of the following are variables that affect the demand for a product except
a. price of compliments
b. number of sellers
c. income of consumers
d. price of good x
d - Answer Which of the following is not one of the categories of resources that was given in class
a. capital
b. land
c. labor
d. production
e. entrepreneurship
b - Answer The Law of Demand
a. tells us the price of a good cannot be sold above the legal maximum
b. tells us that when the price of a good increases, demand for the good increases
c. tells us that a surplus of a good results in a store sale
d. tells us that producers can only sell products that have been obtained legally
,d - Answer To decide how to use our scarce resources to satisfy economic wants, our economy primarily
relies on
a. planning
b. political voting
c. production targets
d. prices
c - Answer Which of the following is not one of the reasons for the law of demand holding true
a. substitution effect
b. income effect
c. the law of diminishing returns
d. the law of diminishing marginal utility
true - Answer Abstraction is necessary in economics because there are so many variables to keep track
of (true or false)
false - Answer Microeconomics deals with the economic goals stability and equity (true or false)
b - Answer Every economy must answer four basic questions. Which of the following is not one of them?
a. how much to produce
b. who is going to produce
c. who to produce for
d. how to produce
c - Answer There are four investment opportunities available to a company with excess cash to invest:
an investment that pays 8%; 6%; 4%; and 2%. If the company were to choose the 6% option, what would
their opportunity cost be?
a. 2%
b. 6%
c. 8%
, d. 14%
true - Answer This is an example of a positive statement: Students should come to class every day (true
or false)
b - Answer Which of the following is consistent with the law of demand?
a. a decrease in the price of purses causes a decrease in the quantity of purses demanded
b. an increase in the price of shoes causes a decrease in the quantity of shoes demanded
c. an increase in the price of belts causes in increase in the quantity of belts demanded
d. a decrease in the price of lipstick causes no change in the quantity of lipstick demanded
b - Answer Which expression is another way of saying marginal benefit
a. total benefit
b. extra benefit
c. loss
d. profit
b - Answer In class, a list of concepts was constructed that you could see illustrated in the PPC. All of the
following concepts made it on the list except one. Which one?
a. scarcity
b. price
c. efficiency
d. choices
c - Answer In class, a list of concepts was constructed that you could see illustrated in the PPC. All of the
following concepts made it on the list except one. Which one?
a. scarcity
b. price
c. efficiency
d. choices
