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unt Econ 1100 Exam 1 Questions and Correct
Answers
The primary difference between a change in supply and a change
in the quantity supplied is: Ans: a change in quantity supplied is
caused by a change in the price of the good itself, and a change in
supply is caused by a change in a non-price determinant of supply
Which of the following will cause a decrease in the demand for
batteries? Ans: An increase in the price of digital cameras, a
complement for batteries
Based on the information in the table below, the opportunity cost
of producing one clock in Mexico is:
Clock Radio
Spain 4 hours 2 hours
Mexico 3 hours 6 hours Ans: 1/2 radio.
Which of the following is a normative microeconomic statement?
Ans: Government should lower the taxes paid by small
businesses.
© 2025 All rights reserved
, 2 | Page
An outward shift of a production possibilities frontier illustrates
that: Ans: economic growth has occurred.
If the demand for electricity is inelastic but not perfectly inelastic,
a 10% increase in the price of electricity is likely to: Ans: lead to a
decrease in the quantity demanded of electricity of less than 10%.
If quantity demanded is 30 when price is $3 and quantity
demanded is 20 when price is $5, then total revenue __________ if
price increases from $3 to $5, implying that demand is _________.
Ans: increases; inelastic
In the market for used cars, a surplus of used cars would, ceteris
paribus: Ans: put downward pressure on the price of used cars.
In the graph below, a shift from PPF1 to PPF2 will occur as a result
of: Ans: an increase in the resources and technology used to
produce food and clothing.
Initially, assume Country A is producing and consuming 10 cars
and 20 boats, while Country B is producing and consuming 20 cars
and 40 boats. The two countries then decide to specialize
according to comparative advantage and engage in trade. The
potential gains from trade for both countries combined work out
to be: Ans: 20 boats, to be divided between the two countries.
© 2025 All rights reserved
unt Econ 1100 Exam 1 Questions and Correct
Answers
The primary difference between a change in supply and a change
in the quantity supplied is: Ans: a change in quantity supplied is
caused by a change in the price of the good itself, and a change in
supply is caused by a change in a non-price determinant of supply
Which of the following will cause a decrease in the demand for
batteries? Ans: An increase in the price of digital cameras, a
complement for batteries
Based on the information in the table below, the opportunity cost
of producing one clock in Mexico is:
Clock Radio
Spain 4 hours 2 hours
Mexico 3 hours 6 hours Ans: 1/2 radio.
Which of the following is a normative microeconomic statement?
Ans: Government should lower the taxes paid by small
businesses.
© 2025 All rights reserved
, 2 | Page
An outward shift of a production possibilities frontier illustrates
that: Ans: economic growth has occurred.
If the demand for electricity is inelastic but not perfectly inelastic,
a 10% increase in the price of electricity is likely to: Ans: lead to a
decrease in the quantity demanded of electricity of less than 10%.
If quantity demanded is 30 when price is $3 and quantity
demanded is 20 when price is $5, then total revenue __________ if
price increases from $3 to $5, implying that demand is _________.
Ans: increases; inelastic
In the market for used cars, a surplus of used cars would, ceteris
paribus: Ans: put downward pressure on the price of used cars.
In the graph below, a shift from PPF1 to PPF2 will occur as a result
of: Ans: an increase in the resources and technology used to
produce food and clothing.
Initially, assume Country A is producing and consuming 10 cars
and 20 boats, while Country B is producing and consuming 20 cars
and 40 boats. The two countries then decide to specialize
according to comparative advantage and engage in trade. The
potential gains from trade for both countries combined work out
to be: Ans: 20 boats, to be divided between the two countries.
© 2025 All rights reserved
