HBX-Economics Questions and Answers (100%
Correct Answers) Already Graded A+
Which of the following events would, all else equal, cause
a rightward shift of the demand curve for yachts? Select
all that apply. [ Ans: ] A decrease in the price of yachts
A change in the price of yachts would not shift the
demand curve for yachts. Price changes only affect
quantity demanded, not overall demand.
An increase in household income
is correct
An increase in income would allow more households to be
able to afford yachts, shifting the overall demand for
yachts at any given price to the right.
The elimination of a regulation, which had prevented
boats from sailing on a particular series of lakes
is correct
The elimination of a regulation on boats would increase
the demand for yachts to sail in previously forbidden
waters.
Your toy company is looking into launching a new line of
dolls and action figures but is unsure if kids these days
still actually play with them. As part of your market
,research, you send out a survey to 1000 households that
have purchased toys in the last five years. You also decide
to run two focus groups: one group of children ages 4-16
and one group of parents.
Which of the following questions asked in a survey or
focus group would be unbiased and allow you to gain
reliable information? Select all that apply. [ Ans: ] A
survey question asking households, "How much money
per month do you typically spend on your children's
happiness?"
This question is too broad and could be biased. For
example, some parents will likely overstate the amount
they spend on their children to seem like better parents.
A focus group question asking children, "How often per
week do you play with dolls or action figures?"
This question could be biased. Younger children are
unlikely to be able to estimate the amount of time they
spend playing with toys. It might also be the case that
children lie about which toys they use and how often.
A survey question asking households, "What
fraction/percentage of income do you estimate that your
family spends on entertainment in a given month?"
is correct
This question seems reasonable and could be useful to
estimate potential market size.
, A focus group question asking parents, "With which types
of toys do your children typically play?"
is incorrect
This question could be biased. Parents that work during
the day might not know what kinds of toys that their kids
like to play with. It might also be that parents would want
their children to play with more educational toys than
they actually do.
An anonymous survey question asking children, "what's
your favorite toy and why do you like to play with it?
is correct
This question is likely to evoke a truthful response and
allow your company see some common features of toys
that kids would value.
In which of the following situations is an auction
especially effective? Select all that apply. [ Ans: ] The
seller is time-sensitive
is correct
Auctions are effective when a seller needs to sell an item
by a certain date. A seller could use a fixed price when he
or she is not under time pressure.
Buyers' valuation of the auction item is within a narrow
range.
Correct Answers) Already Graded A+
Which of the following events would, all else equal, cause
a rightward shift of the demand curve for yachts? Select
all that apply. [ Ans: ] A decrease in the price of yachts
A change in the price of yachts would not shift the
demand curve for yachts. Price changes only affect
quantity demanded, not overall demand.
An increase in household income
is correct
An increase in income would allow more households to be
able to afford yachts, shifting the overall demand for
yachts at any given price to the right.
The elimination of a regulation, which had prevented
boats from sailing on a particular series of lakes
is correct
The elimination of a regulation on boats would increase
the demand for yachts to sail in previously forbidden
waters.
Your toy company is looking into launching a new line of
dolls and action figures but is unsure if kids these days
still actually play with them. As part of your market
,research, you send out a survey to 1000 households that
have purchased toys in the last five years. You also decide
to run two focus groups: one group of children ages 4-16
and one group of parents.
Which of the following questions asked in a survey or
focus group would be unbiased and allow you to gain
reliable information? Select all that apply. [ Ans: ] A
survey question asking households, "How much money
per month do you typically spend on your children's
happiness?"
This question is too broad and could be biased. For
example, some parents will likely overstate the amount
they spend on their children to seem like better parents.
A focus group question asking children, "How often per
week do you play with dolls or action figures?"
This question could be biased. Younger children are
unlikely to be able to estimate the amount of time they
spend playing with toys. It might also be the case that
children lie about which toys they use and how often.
A survey question asking households, "What
fraction/percentage of income do you estimate that your
family spends on entertainment in a given month?"
is correct
This question seems reasonable and could be useful to
estimate potential market size.
, A focus group question asking parents, "With which types
of toys do your children typically play?"
is incorrect
This question could be biased. Parents that work during
the day might not know what kinds of toys that their kids
like to play with. It might also be that parents would want
their children to play with more educational toys than
they actually do.
An anonymous survey question asking children, "what's
your favorite toy and why do you like to play with it?
is correct
This question is likely to evoke a truthful response and
allow your company see some common features of toys
that kids would value.
In which of the following situations is an auction
especially effective? Select all that apply. [ Ans: ] The
seller is time-sensitive
is correct
Auctions are effective when a seller needs to sell an item
by a certain date. A seller could use a fixed price when he
or she is not under time pressure.
Buyers' valuation of the auction item is within a narrow
range.
