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UNT ECON 1100 EXAM 1 Questions and
Correct Answers
Scarcity exist because Ans: currently available resources arnt
sufficient enough to produce everything people want and need
Economics Ans: The science of scarcity. Its balance between
unlimited wants and scarce resources.
The government should raise taxes is a ... Ans: normative
statement
normative statement Ans: an opinion
positive statement Ans: a fact
which would be studied in a microeconomics course Ans: The
strategy used by owners of a competitive firm to max profits
which of the following is not an example of a factor of production
referred to as capital Ans: money used to start a business
opportunity cost of attending school is Ans: highest for someone
who gave up good jobs to attend school
command economy is characterized by Ans: government
ownership or control of most resources.
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, 2 | Page
Remember this with "the gov is in command"
Rightward shift of a ppf indicates Ans: economic growth has
occured
Two parties can enjoy gains from trade by specializing in the
activities for which Ans: a comparaitive advantage exist
law of demand Ans: inverse of price and quantity
Which would best explain a decrease in the demand for shrimp
Ans: a decrease in the price of crab legs (a substitute for shrimp)
Which best explains a decrease in the supply of bicycles Ans: a
decrease in the number of bicycle manufactururs
Technological improvements that reduce the cost of
manufacturing personal computers combined with a decrease in
demand for personal computers results in Ans: either a or b
an increase in equilibrium quantity and decrease in equilibrium
price or decrease in both.
Income elasticity of demand is calculated as Ans: % of change in
quanitiy demanded/ % of change in price
Interpret price elasticity of demand...+ is Ans: Normal good
Interpret price elasticity of demand ... - is Ans: Inferior good
© 2025 All rights reserved
UNT ECON 1100 EXAM 1 Questions and
Correct Answers
Scarcity exist because Ans: currently available resources arnt
sufficient enough to produce everything people want and need
Economics Ans: The science of scarcity. Its balance between
unlimited wants and scarce resources.
The government should raise taxes is a ... Ans: normative
statement
normative statement Ans: an opinion
positive statement Ans: a fact
which would be studied in a microeconomics course Ans: The
strategy used by owners of a competitive firm to max profits
which of the following is not an example of a factor of production
referred to as capital Ans: money used to start a business
opportunity cost of attending school is Ans: highest for someone
who gave up good jobs to attend school
command economy is characterized by Ans: government
ownership or control of most resources.
© 2025 All rights reserved
, 2 | Page
Remember this with "the gov is in command"
Rightward shift of a ppf indicates Ans: economic growth has
occured
Two parties can enjoy gains from trade by specializing in the
activities for which Ans: a comparaitive advantage exist
law of demand Ans: inverse of price and quantity
Which would best explain a decrease in the demand for shrimp
Ans: a decrease in the price of crab legs (a substitute for shrimp)
Which best explains a decrease in the supply of bicycles Ans: a
decrease in the number of bicycle manufactururs
Technological improvements that reduce the cost of
manufacturing personal computers combined with a decrease in
demand for personal computers results in Ans: either a or b
an increase in equilibrium quantity and decrease in equilibrium
price or decrease in both.
Income elasticity of demand is calculated as Ans: % of change in
quanitiy demanded/ % of change in price
Interpret price elasticity of demand...+ is Ans: Normal good
Interpret price elasticity of demand ... - is Ans: Inferior good
© 2025 All rights reserved
