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ECON 200 UofA Exam 2 (2025) – Microeconomics Study Guide,
Market Structures, and Practice Questions with Answers
Get ready for ECON 200 Exam 2 at the University of Arizona with this microeconomics study
guide covering market structures, costs, and competition.
Prepare for the ECON 200 UofA Exam 2 (2025) with this comprehensive Principles of
Microeconomics review guide. Focus on key Exam 2 topics including production and costs,
perfect competition, monopoly, monopolistic competition, oligopoly, market efficiency, and
externalities. This resource includes practice questions, graph-based problems, and detailed
answer explanations aligned with University of Arizona ECON 200 course materials. Perfect
for students using Canvas or Pearson MyLab Economics, this guide helps reinforce concepts
and improve exam performance.
• ECON 200 UofA exam 2 2025
• University of Arizona ECON 200 exam
• ECON 200 microeconomics exam 2 answers
• ECON 200 market structures study guide
If credit cards were suddenly ruled illegal and were no longer used, the most likely effect would be a
decrease in the
a. demand for money.
b. level of cash balances.
c. average checking account balance.
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d. velocity of circulation. - ANSWER-d. velocity of circulation.
The efficiency of the payments' mechanism affects
a. the speed with which money can be exchanged for other assets.
b. how quickly individual loan applications will be approved.
c. how slowly individuals deplete their cash balances.
d. the speed with which financial institutions can process checks and other funds. - ANSWER-d. the
speed with which financial institutions can process checks and other funds.
In 1998, the Fed cut interest rates to prevent the spread of the international financial crisis. What is the
effect of this on velocity?
a. It will decrease.
b. It will increase.
c. It will remain constant.
d. Velocity is unrelated to interest rates. - ANSWER-a. It will decrease.
As we approached the end of the millennium, many economic crackpots advised citizens to hold large
quantities of cash in anticipation of Y2K disasters. What effect would this have had on velocity if many
people had been foolish enough to follow this advice?
a. It would have decreased.
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b. It would have increased.
c. It would have remained constant.
d. Velocity is unrelated to cash balances. - ANSWER-a. It would have decreased.
What determines the magnitude of the changes in price level when central bank takes monetary policy
measures that leads to a change in the aggregate demand?
a. Changes in the money supply
b. Slope of the aggregate supply curve
c. Rate of change of interest rate
d. Total money supply in the economy - ANSWER-b. Slope of the aggregate supply curve
The correct chain of causation illustrating the effects of monetary policy is
a. money, interest rates, C + I + G + (X - IM), I.
b. money, interest rates, I, C + I + G + (X - IM).
c. C + I + G + (X - IM), I, interest rates, money.
d. I, C + I + G + (X - IM), money, interest rates. - ANSWER-b. money, interest rates, I, C + I + G + (X - IM).
Which of the following is the formula for velocity?
ECON 200 UofA Exam 2 (2025) – Microeconomics Study Guide,
Market Structures, and Practice Questions with Answers
Get ready for ECON 200 Exam 2 at the University of Arizona with this microeconomics study
guide covering market structures, costs, and competition.
Prepare for the ECON 200 UofA Exam 2 (2025) with this comprehensive Principles of
Microeconomics review guide. Focus on key Exam 2 topics including production and costs,
perfect competition, monopoly, monopolistic competition, oligopoly, market efficiency, and
externalities. This resource includes practice questions, graph-based problems, and detailed
answer explanations aligned with University of Arizona ECON 200 course materials. Perfect
for students using Canvas or Pearson MyLab Economics, this guide helps reinforce concepts
and improve exam performance.
• ECON 200 UofA exam 2 2025
• University of Arizona ECON 200 exam
• ECON 200 microeconomics exam 2 answers
• ECON 200 market structures study guide
If credit cards were suddenly ruled illegal and were no longer used, the most likely effect would be a
decrease in the
a. demand for money.
b. level of cash balances.
c. average checking account balance.
,2|Page
d. velocity of circulation. - ANSWER-d. velocity of circulation.
The efficiency of the payments' mechanism affects
a. the speed with which money can be exchanged for other assets.
b. how quickly individual loan applications will be approved.
c. how slowly individuals deplete their cash balances.
d. the speed with which financial institutions can process checks and other funds. - ANSWER-d. the
speed with which financial institutions can process checks and other funds.
In 1998, the Fed cut interest rates to prevent the spread of the international financial crisis. What is the
effect of this on velocity?
a. It will decrease.
b. It will increase.
c. It will remain constant.
d. Velocity is unrelated to interest rates. - ANSWER-a. It will decrease.
As we approached the end of the millennium, many economic crackpots advised citizens to hold large
quantities of cash in anticipation of Y2K disasters. What effect would this have had on velocity if many
people had been foolish enough to follow this advice?
a. It would have decreased.
, 3|Page
b. It would have increased.
c. It would have remained constant.
d. Velocity is unrelated to cash balances. - ANSWER-a. It would have decreased.
What determines the magnitude of the changes in price level when central bank takes monetary policy
measures that leads to a change in the aggregate demand?
a. Changes in the money supply
b. Slope of the aggregate supply curve
c. Rate of change of interest rate
d. Total money supply in the economy - ANSWER-b. Slope of the aggregate supply curve
The correct chain of causation illustrating the effects of monetary policy is
a. money, interest rates, C + I + G + (X - IM), I.
b. money, interest rates, I, C + I + G + (X - IM).
c. C + I + G + (X - IM), I, interest rates, money.
d. I, C + I + G + (X - IM), money, interest rates. - ANSWER-b. money, interest rates, I, C + I + G + (X - IM).
Which of the following is the formula for velocity?
