ECON 1001 Midterm Exam | Questions and correct
detailed Answers | 2026/27 Updates | 100% correct
Correct
Incorrect
Questions and Answers
, 1 of 80
Term
In which of the following situations would economists use the word
equity?
a. Each member of society has the same income.
b. Those in society who have the least will receive the most.
c. Society is getting the most it can from its scarce resources.
d. The benefits of society's resources are distributed fairly among
society's members.
Give this one a try later!
d. Martha must decide between
d. Prices rise when the government
going to Cancun and Miami for
prints too much money.
spring break.
b. Economic models omit many d. The benefits of society's
details to allow us to see what is truly resources are distributed fairly
important. among society's members.
Don't know?
2 of 80
Term
Harry's Barber Shop increased its total monthly revenue from $1,500 to
$1,800 when it raised the price of a haircut from $5 to $9. What is the
,price elasticity of demand for Harry's Haircuts?
a. 0.816
b. 0.700
c. 0.416
d. 0.318
Give this one a try later!
b. the dress manufacturer to supply
b. demand and supply both decrease
fewer dresses now.
b. 0.700 d. 0.583
Don't know?
3 of 80
Term
Which of the following is an example of a positive statement?
a. The benefits to the economy of improved equity are greater than the
costs of reduced efficiency.
b. If welfare payments increase, the world will be a better place.
c. Inflation is more harmful to the economy than unemployment.
d. Prices rise when the government prints too much money.
, Give this one a try later!
d. Martha must decide between
b. demand and supply both decrease going to Cancun and Miami for
spring break.
d. Prices rise when the
b. an input price falls, profit rises, the
government prints too much
supply curve shifts right
money.
Don't know?
4 of 80
Term
Which of the following would unambiguously cause a decrease in the
equilibrium price of cotton shirts?
a. an increase in the price of wool shirts and a decrease in the price of
raw cotton.
b. a decrease in the price of wool shirts and a decrease in the price of
raw cotton.
c. an increase in the price of wool shirts and an increase in the price of
raw cotton.
d. a decrease in the price of wool shirts and an increase in the price of
raw cotton.
Give this one a try later!
detailed Answers | 2026/27 Updates | 100% correct
Correct
Incorrect
Questions and Answers
, 1 of 80
Term
In which of the following situations would economists use the word
equity?
a. Each member of society has the same income.
b. Those in society who have the least will receive the most.
c. Society is getting the most it can from its scarce resources.
d. The benefits of society's resources are distributed fairly among
society's members.
Give this one a try later!
d. Martha must decide between
d. Prices rise when the government
going to Cancun and Miami for
prints too much money.
spring break.
b. Economic models omit many d. The benefits of society's
details to allow us to see what is truly resources are distributed fairly
important. among society's members.
Don't know?
2 of 80
Term
Harry's Barber Shop increased its total monthly revenue from $1,500 to
$1,800 when it raised the price of a haircut from $5 to $9. What is the
,price elasticity of demand for Harry's Haircuts?
a. 0.816
b. 0.700
c. 0.416
d. 0.318
Give this one a try later!
b. the dress manufacturer to supply
b. demand and supply both decrease
fewer dresses now.
b. 0.700 d. 0.583
Don't know?
3 of 80
Term
Which of the following is an example of a positive statement?
a. The benefits to the economy of improved equity are greater than the
costs of reduced efficiency.
b. If welfare payments increase, the world will be a better place.
c. Inflation is more harmful to the economy than unemployment.
d. Prices rise when the government prints too much money.
, Give this one a try later!
d. Martha must decide between
b. demand and supply both decrease going to Cancun and Miami for
spring break.
d. Prices rise when the
b. an input price falls, profit rises, the
government prints too much
supply curve shifts right
money.
Don't know?
4 of 80
Term
Which of the following would unambiguously cause a decrease in the
equilibrium price of cotton shirts?
a. an increase in the price of wool shirts and a decrease in the price of
raw cotton.
b. a decrease in the price of wool shirts and a decrease in the price of
raw cotton.
c. an increase in the price of wool shirts and an increase in the price of
raw cotton.
d. a decrease in the price of wool shirts and an increase in the price of
raw cotton.
Give this one a try later!
