EconoEconomics
mics 201 Final Exam Questions With Correct Answers
./ ./ ./ ./ ./ ./ ./
according./to./dr../watts./summary./of./marginal./value./theory,./the./value./of./a./good./is./based./on:.
/ -
./ correct./answer./✔✔the./benefit/./usefulness./of./the./good./in./the./combination./with./its./scarcit
y.
if./a./product./is./fungible,./that./means./that./units./of./the./product./are./completely./interchangeabl
e../-./correct./answer./✔✔true
the./graph./of./the./the./marginal./value./curve./of./a./good./can./be./interpreted./to./show./both./the./g
ood's./total./value./and./its./market./value./or./price../-./correct./answer./✔✔true
economics./derives./from./a./greek./term./which./referred./to./household./management../-
./ correct./answer./✔✔true
which./term./applies./to./knowledge./that./can./be./acquired./and./confirmed./by./observation./-
./ correct./answer./✔✔empirical
which./product./is./most./likely./to./have./the./most./elastic./demand./curve?./-./correct./answer./✔
✔little./teaser./$5./pepperino./pizza
which./best./explains./why./supply./curves./usually./slope./towards?./-./correct./answer./✔✔
cost./rise./with./increased./production.
If./the./price./of./orange./juice./rises./10%,./and./quantity./of./OJ./consumed./declines./by./50%./per./
week,./OJ./demand./is./-./correct./answer./✔✔elastic
, what./is./equal./at./equilibrium?./-./correct./answer./✔✔
quantity./supplied./and./quantity./demanded.
when./a./business./sets./prices./below./equilibrium,./it./often./finds./that./it./can't./keep./products./in./
stock,../to./correct./this./situation,./the./company./will./sooner./or./later./raise./its./prices../this./situati
on./is./known./as?./-./correct./answer./✔✔shortage
A./consumer./subsidy./can./be./defined./as:./-./correct./answer./✔✔
a./grant./of./money./from./government./to./consumers./of./a./good./or./service
Consumer./subsidies./shift./the./demand./curve./to./the./right./,./leading./to./higher./prices./and./hig
her./quantities./for./the./subsidized./product../-./correct./answer./✔✔1:demand
2:right
3:higher
./ 4:higher
Consumers./using./government./subsidies./to./purchase./products./or./services./for./themselves.
/ represents./which./kind./of./spending:./-./correct./answer./✔✔category./3
From./1996./to./2016,./college./tuition./in./the./US./increased./by./roughly./four./times./the./rate./of./all
./ consumer./goods./prices../-./correct./answer./✔✔true
Other./than./consumer./subsidies,./what./factors./contribute./to./persistent./increases./in./prices./
of./goods./or./services?./-./correct./answer./✔✔A)./labor-intensive./production./processes
B)./Back./of./competition
C)./high./fixed./costs./in./the./production./process
D)./all./of./these
D)./is./correct
mics 201 Final Exam Questions With Correct Answers
./ ./ ./ ./ ./ ./ ./
according./to./dr../watts./summary./of./marginal./value./theory,./the./value./of./a./good./is./based./on:.
/ -
./ correct./answer./✔✔the./benefit/./usefulness./of./the./good./in./the./combination./with./its./scarcit
y.
if./a./product./is./fungible,./that./means./that./units./of./the./product./are./completely./interchangeabl
e../-./correct./answer./✔✔true
the./graph./of./the./the./marginal./value./curve./of./a./good./can./be./interpreted./to./show./both./the./g
ood's./total./value./and./its./market./value./or./price../-./correct./answer./✔✔true
economics./derives./from./a./greek./term./which./referred./to./household./management../-
./ correct./answer./✔✔true
which./term./applies./to./knowledge./that./can./be./acquired./and./confirmed./by./observation./-
./ correct./answer./✔✔empirical
which./product./is./most./likely./to./have./the./most./elastic./demand./curve?./-./correct./answer./✔
✔little./teaser./$5./pepperino./pizza
which./best./explains./why./supply./curves./usually./slope./towards?./-./correct./answer./✔✔
cost./rise./with./increased./production.
If./the./price./of./orange./juice./rises./10%,./and./quantity./of./OJ./consumed./declines./by./50%./per./
week,./OJ./demand./is./-./correct./answer./✔✔elastic
, what./is./equal./at./equilibrium?./-./correct./answer./✔✔
quantity./supplied./and./quantity./demanded.
when./a./business./sets./prices./below./equilibrium,./it./often./finds./that./it./can't./keep./products./in./
stock,../to./correct./this./situation,./the./company./will./sooner./or./later./raise./its./prices../this./situati
on./is./known./as?./-./correct./answer./✔✔shortage
A./consumer./subsidy./can./be./defined./as:./-./correct./answer./✔✔
a./grant./of./money./from./government./to./consumers./of./a./good./or./service
Consumer./subsidies./shift./the./demand./curve./to./the./right./,./leading./to./higher./prices./and./hig
her./quantities./for./the./subsidized./product../-./correct./answer./✔✔1:demand
2:right
3:higher
./ 4:higher
Consumers./using./government./subsidies./to./purchase./products./or./services./for./themselves.
/ represents./which./kind./of./spending:./-./correct./answer./✔✔category./3
From./1996./to./2016,./college./tuition./in./the./US./increased./by./roughly./four./times./the./rate./of./all
./ consumer./goods./prices../-./correct./answer./✔✔true
Other./than./consumer./subsidies,./what./factors./contribute./to./persistent./increases./in./prices./
of./goods./or./services?./-./correct./answer./✔✔A)./labor-intensive./production./processes
B)./Back./of./competition
C)./high./fixed./costs./in./the./production./process
D)./all./of./these
D)./is./correct
