Econ 201Exam quizzes with answers
graded 100%
Economics - ANS✅✅The study of how society employs its scarce resources among alternative
competing sources
Macroeconomics - ANS✅✅Analyses economy-wide phenomena such as growth, inflation, and
employment. It explores the determination and fluctuation of aggregate measures of economics
activity.
Microeconomics - ANS✅✅The Study of Behavior of individual economic agents, and their
interactions within markets. _______ considers issues such as how households reach decisions about
consumption and how firms set a price for their output.
Markets - ANS✅✅An institutional arrangement where buyers and sellers of a product( or service)
negotiate the conditions of exchange(price, amount,type,ect). If an agreement is reached between
buyers and sellers, a voluntary market transaction occurs and ownership of the product changes
hands from seller to the buyer (or the service is conducted)
The 4 basic factors of production - ANS✅✅Land, Labor, Capital and Entrepreneurship
Land (T) - ANS✅✅The economic resource _ _ _ _ refers to the arable lang, natural resources
Which of the following statements best expresses the primary difference between 'economic' and
'public' goods - ANS✅✅Economic Goods are subject to the exclusion principle, whereas public
good are not
Suppose that the market for orange juice has established an equilibrium price (Pe) of $5, per gallon,
and an equilibrium quantity (Qe) of 200,000 units. If the government now establishes a $7 price floor
of the product, we should then expect: - ANS✅✅Qd < Qs and a surplus of the good.
Which of the following terms would an economist classify as the economic resource "Land"
a) coal
b) production workers
, c) shares common stock
d) an industrial welding machine - ANS✅✅a) coal
The opportunity cost of a decision is measured by - ANS✅✅The value of the (next best) sacrificed
alternative
If consumer tastes & preferences change so that a particular commodity is now considered less
appealing to consumers, this leads to - ANS✅✅a decrease in demand and a shift of the demand
curve to the left
If ramen noodles are considered to be an inferior good, an economic expansion, with increasing
consumer incomes, will most likely cause - ANS✅✅a LEFTWARD SHIFT in the demand curve for
ramen noodles and less consumption
Suppose the CTA increases the average ticket by 20% and then observes that quantity purchased
(i.e. ridership) decreases by 15%. This information suggest that the demand is _________ and the
total revenue will _____. - ANS✅✅Relatively inelastic, increase
Consider 2 of the following statements:
1) A decrease in the price of smartphones will cause an increase in the demand for smartphones.
2) A decrease in the price of cellular data plans will cause an increase in the demand for
smartphones. In which of these two statements will the language of supply and demand model be
used correctly. - ANS✅✅The second statement
For which of the following pairs would we expect the cross-price elasticity of demand to be
NEGATIVE - ANS✅✅Kayaks and paddles
Any improvement in production technology that allows more output to be produced with the same
level of input causes - ANS✅✅a RIGHTWARD shift of the supply curve so that more is offered at
each price.
In the standard of economic theory of consumer behavior, which of the following variables would
NOT establish the budget constraint. - ANS✅✅The consumers utility from goods and services
graded 100%
Economics - ANS✅✅The study of how society employs its scarce resources among alternative
competing sources
Macroeconomics - ANS✅✅Analyses economy-wide phenomena such as growth, inflation, and
employment. It explores the determination and fluctuation of aggregate measures of economics
activity.
Microeconomics - ANS✅✅The Study of Behavior of individual economic agents, and their
interactions within markets. _______ considers issues such as how households reach decisions about
consumption and how firms set a price for their output.
Markets - ANS✅✅An institutional arrangement where buyers and sellers of a product( or service)
negotiate the conditions of exchange(price, amount,type,ect). If an agreement is reached between
buyers and sellers, a voluntary market transaction occurs and ownership of the product changes
hands from seller to the buyer (or the service is conducted)
The 4 basic factors of production - ANS✅✅Land, Labor, Capital and Entrepreneurship
Land (T) - ANS✅✅The economic resource _ _ _ _ refers to the arable lang, natural resources
Which of the following statements best expresses the primary difference between 'economic' and
'public' goods - ANS✅✅Economic Goods are subject to the exclusion principle, whereas public
good are not
Suppose that the market for orange juice has established an equilibrium price (Pe) of $5, per gallon,
and an equilibrium quantity (Qe) of 200,000 units. If the government now establishes a $7 price floor
of the product, we should then expect: - ANS✅✅Qd < Qs and a surplus of the good.
Which of the following terms would an economist classify as the economic resource "Land"
a) coal
b) production workers
, c) shares common stock
d) an industrial welding machine - ANS✅✅a) coal
The opportunity cost of a decision is measured by - ANS✅✅The value of the (next best) sacrificed
alternative
If consumer tastes & preferences change so that a particular commodity is now considered less
appealing to consumers, this leads to - ANS✅✅a decrease in demand and a shift of the demand
curve to the left
If ramen noodles are considered to be an inferior good, an economic expansion, with increasing
consumer incomes, will most likely cause - ANS✅✅a LEFTWARD SHIFT in the demand curve for
ramen noodles and less consumption
Suppose the CTA increases the average ticket by 20% and then observes that quantity purchased
(i.e. ridership) decreases by 15%. This information suggest that the demand is _________ and the
total revenue will _____. - ANS✅✅Relatively inelastic, increase
Consider 2 of the following statements:
1) A decrease in the price of smartphones will cause an increase in the demand for smartphones.
2) A decrease in the price of cellular data plans will cause an increase in the demand for
smartphones. In which of these two statements will the language of supply and demand model be
used correctly. - ANS✅✅The second statement
For which of the following pairs would we expect the cross-price elasticity of demand to be
NEGATIVE - ANS✅✅Kayaks and paddles
Any improvement in production technology that allows more output to be produced with the same
level of input causes - ANS✅✅a RIGHTWARD shift of the supply curve so that more is offered at
each price.
In the standard of economic theory of consumer behavior, which of the following variables would
NOT establish the budget constraint. - ANS✅✅The consumers utility from goods and services
