ECON 2102 Quiz Questions and Answers Already Passed Latest Update 2025-2026
Because resources are scarce society must make decisions about all of the following except: -
Answers Whether scarcity exists or not.
Indicate if the following statement is True or False.
100 shares of GM stock is an example of capital - Answers false
What is the opportunity cost of increasing the number of solar panels in use in the United States?
- Answers The land that was used to produce the solar panels that could have been used to
produce something else.
Which of the following is an assumption under which the production-possibilities curve is drawn?
- Answers The supply of resources is fixed.
the production possibilities curve demonstrates: - Answers the law of increasing opportunity
costs.
Over time, an increase in a nation's stock of physical capital will: - Answers shift the production
possibilities curve outward.
Indicate if the following statement is True or False.
All output combinations that lie outside a production possibilities curve are attainable with
available resources and technology. - Answers false
The law of demand is the principle that there is ____ relationship between the price of a good
and the quantity buyers are willing to purchase in a defined time period, ceteris paribus. -
Answers an inverse
Indicate if the following statement is True or False.
The increase in the price of a plane ticket will cause a decrease in demand for airline travel and
a leftward shift in the demand curve. - Answers false
A very hot summer in Charlotte will cause: - Answers The demand for jackets to decrease.
Which of the following would most likely cause the demand for veggie burgers to increase? -
Answers An increase in the price of tofu burgers, perceived as a substitute by veggie burger
consumers.
Indicate if the following statement is True or False.
An increase in the price of one good can cause the demand for another good to increase if the
two goods are complements. - Answers false
Assuming that automobiles are normal goods, a rise in consumer income, other things being
, equal, will cause: - Answers the demand curve for automobiles to shift to the right.
Business firms supply goods and services to ____ and purchase factors of production in ____.
You Answered - Answers Product markets; factor markets.
Which of the following will cause a movement upward along a supply curve? - Answers
Increases in the market price of a good, other things being equal.
If the price of the factors used to produce a good change, both the demand curve and the
supply curve of the good will shift. - Answers false
How will an increase in lumber prices influence the home construction market? - Answers The
supply of newly constructed homes will decrease.
If the quantity demanded of milk is 55,000 and the quantity supplied of milk is 80,000, then: -
Answers there is an excess supply of 25,000 units of milk.
When prices are allowed to adjust freely, if the quantity demanded of a good is less than the
quantity supplied of the good at the current price, then: - Answers The demand curve will shift to
the left to create an equilibrium
Indicate if the following statement is True or False.
Quantity supplied will exceed quantity demanded if price is above its equilibrium level. -
Answers true
In the market for smartphones and Verizon data plans, the two goods are complements. If the
price of data plans rise, what response do you expect in the market for smartphones? - Answers
Price will decrease, and quantity will decrease.
Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what
will happen to the market equilibrium for cabbage, a substitute good for broccoli? - Answers
Price will decrease, and quantity will decrease.
How would a decrease in the price of the feed grains used to feed cattle affect the market for
beef? - Answers The supply of beef would increase, decreasing beef prices.
Suppose there are a series of forest fires which affect the lumber industry. The wooden
furniture market would experience: - Answers An increase in price and a decrease in quantity
Indicate if the following statement is True or False.
If a government imposed price ceiling legally sets the price of beef below market equilibrium,
there will be a surplus of beef. - Answers false
Which of the following is a source of market failure? - Answers market power
Because resources are scarce society must make decisions about all of the following except: -
Answers Whether scarcity exists or not.
Indicate if the following statement is True or False.
100 shares of GM stock is an example of capital - Answers false
What is the opportunity cost of increasing the number of solar panels in use in the United States?
- Answers The land that was used to produce the solar panels that could have been used to
produce something else.
Which of the following is an assumption under which the production-possibilities curve is drawn?
- Answers The supply of resources is fixed.
the production possibilities curve demonstrates: - Answers the law of increasing opportunity
costs.
Over time, an increase in a nation's stock of physical capital will: - Answers shift the production
possibilities curve outward.
Indicate if the following statement is True or False.
All output combinations that lie outside a production possibilities curve are attainable with
available resources and technology. - Answers false
The law of demand is the principle that there is ____ relationship between the price of a good
and the quantity buyers are willing to purchase in a defined time period, ceteris paribus. -
Answers an inverse
Indicate if the following statement is True or False.
The increase in the price of a plane ticket will cause a decrease in demand for airline travel and
a leftward shift in the demand curve. - Answers false
A very hot summer in Charlotte will cause: - Answers The demand for jackets to decrease.
Which of the following would most likely cause the demand for veggie burgers to increase? -
Answers An increase in the price of tofu burgers, perceived as a substitute by veggie burger
consumers.
Indicate if the following statement is True or False.
An increase in the price of one good can cause the demand for another good to increase if the
two goods are complements. - Answers false
Assuming that automobiles are normal goods, a rise in consumer income, other things being
, equal, will cause: - Answers the demand curve for automobiles to shift to the right.
Business firms supply goods and services to ____ and purchase factors of production in ____.
You Answered - Answers Product markets; factor markets.
Which of the following will cause a movement upward along a supply curve? - Answers
Increases in the market price of a good, other things being equal.
If the price of the factors used to produce a good change, both the demand curve and the
supply curve of the good will shift. - Answers false
How will an increase in lumber prices influence the home construction market? - Answers The
supply of newly constructed homes will decrease.
If the quantity demanded of milk is 55,000 and the quantity supplied of milk is 80,000, then: -
Answers there is an excess supply of 25,000 units of milk.
When prices are allowed to adjust freely, if the quantity demanded of a good is less than the
quantity supplied of the good at the current price, then: - Answers The demand curve will shift to
the left to create an equilibrium
Indicate if the following statement is True or False.
Quantity supplied will exceed quantity demanded if price is above its equilibrium level. -
Answers true
In the market for smartphones and Verizon data plans, the two goods are complements. If the
price of data plans rise, what response do you expect in the market for smartphones? - Answers
Price will decrease, and quantity will decrease.
Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what
will happen to the market equilibrium for cabbage, a substitute good for broccoli? - Answers
Price will decrease, and quantity will decrease.
How would a decrease in the price of the feed grains used to feed cattle affect the market for
beef? - Answers The supply of beef would increase, decreasing beef prices.
Suppose there are a series of forest fires which affect the lumber industry. The wooden
furniture market would experience: - Answers An increase in price and a decrease in quantity
Indicate if the following statement is True or False.
If a government imposed price ceiling legally sets the price of beef below market equilibrium,
there will be a surplus of beef. - Answers false
Which of the following is a source of market failure? - Answers market power
