ECON 202 NDSU Exams
The point to the chamber of commerce story was
a.) sometimes people mistakenly attribute numbers for the national economy to their local
b.) sometimes aggregate expenditures is greater than potential GDP
c.) sometimes inflation occurs even when the economy is in a recession
d,) sometimes chambers influence inflation - Answer-a.) sometimes people mistakenly attribute
numbers for the national economy to their local
The law of Demand
a.) tells us what consumers will buy at various prices
b.) tells us that demand curves slope down to the right
c.) tells us that demand depends on supply
d.) tells us that consumers will not purchase expensive products - Answer-b.) tells us that demand
curves slope down to the right
The difference between the complete market demand function and single market demand function is
the use of the concept ceteris paribus
a.) true
b.) false - Answer-a.) true
The law of supply is illustrated by a supply curve that is
a.) horizontal
b.) upward sloping
,c.) downward sloping
d.) vertical - Answer-b.) upward sloping
The law of diminishing returns is a short run concept because capital can be changed in the long run
a.) true
b.) false - Answer-a.) true
Jane earned a pay raise at work and decided to purchase some additional books. This example best fits
which concept?
a.) substitute goods
b.) complementary goods
c.) independent goods
d.) inferior goods
e.) normal goods - Answer-e.) normal goods
Very simply, the Income Effect means
a.) if a consumer's income increases, their purchasing power increases
b.) if a consumers income increases, their purchasing power decreases
c.) if the price of the good increases, their purchasing power decreases
d.) if a consumer's purchasing power increases, their income decreases - Answer-c.) if the price of the
good increases, their purchasing power decreases
Which expression is another way of saying marginal benefit
a.) total benefit
b.) extra benefit
c.) loss
, d.) profit - Answer-b.) extra benefit
if the price of a good increases, supply would increase
a.) true
b.) false - Answer-b.) false
explanation: Quantity supplied will change. Not the entire supply curve
an increase in resource prices will tend to decrease supply
a.) true
b.) false - Answer-a.) true
Chase went to the store to buy steak but didn't like the higher price, so he purchased chicken. This
example best fits which concept?
a.) substitute goods
b.) complementary goods
c.) independent goods
d.) inferior goods
e.) normal goods - Answer-a.) substitute goods
which of the following is consistent with the law of demand?
a.) a decrease in the price of purses causes a decrease in the quantity of purses demanded
b.) an increase in the price of shoes causes a decrease in the quantity of shoes demanded
c.) an increase in the price of belts causes an increase in the quantity of belts demanded
d.) their marginal satisfaction decreases with each unit consumed - Answer-b.) an increase in the price
of shoes causes a decrease in the quantity of shoes demanded
The point to the chamber of commerce story was
a.) sometimes people mistakenly attribute numbers for the national economy to their local
b.) sometimes aggregate expenditures is greater than potential GDP
c.) sometimes inflation occurs even when the economy is in a recession
d,) sometimes chambers influence inflation - Answer-a.) sometimes people mistakenly attribute
numbers for the national economy to their local
The law of Demand
a.) tells us what consumers will buy at various prices
b.) tells us that demand curves slope down to the right
c.) tells us that demand depends on supply
d.) tells us that consumers will not purchase expensive products - Answer-b.) tells us that demand
curves slope down to the right
The difference between the complete market demand function and single market demand function is
the use of the concept ceteris paribus
a.) true
b.) false - Answer-a.) true
The law of supply is illustrated by a supply curve that is
a.) horizontal
b.) upward sloping
,c.) downward sloping
d.) vertical - Answer-b.) upward sloping
The law of diminishing returns is a short run concept because capital can be changed in the long run
a.) true
b.) false - Answer-a.) true
Jane earned a pay raise at work and decided to purchase some additional books. This example best fits
which concept?
a.) substitute goods
b.) complementary goods
c.) independent goods
d.) inferior goods
e.) normal goods - Answer-e.) normal goods
Very simply, the Income Effect means
a.) if a consumer's income increases, their purchasing power increases
b.) if a consumers income increases, their purchasing power decreases
c.) if the price of the good increases, their purchasing power decreases
d.) if a consumer's purchasing power increases, their income decreases - Answer-c.) if the price of the
good increases, their purchasing power decreases
Which expression is another way of saying marginal benefit
a.) total benefit
b.) extra benefit
c.) loss
, d.) profit - Answer-b.) extra benefit
if the price of a good increases, supply would increase
a.) true
b.) false - Answer-b.) false
explanation: Quantity supplied will change. Not the entire supply curve
an increase in resource prices will tend to decrease supply
a.) true
b.) false - Answer-a.) true
Chase went to the store to buy steak but didn't like the higher price, so he purchased chicken. This
example best fits which concept?
a.) substitute goods
b.) complementary goods
c.) independent goods
d.) inferior goods
e.) normal goods - Answer-a.) substitute goods
which of the following is consistent with the law of demand?
a.) a decrease in the price of purses causes a decrease in the quantity of purses demanded
b.) an increase in the price of shoes causes a decrease in the quantity of shoes demanded
c.) an increase in the price of belts causes an increase in the quantity of belts demanded
d.) their marginal satisfaction decreases with each unit consumed - Answer-b.) an increase in the price
of shoes causes a decrease in the quantity of shoes demanded
