ECON 202 FINAL EXAM - OLE MISS, TRACHMAN
QUESTIONS & ELABORATED COMPLETE ANSWERS
1. Which of the following are the key economic assump- Optimal
decisions are
tions that we discussed this week? made at the margin;
People respond to
eco-nomic
incentives; People
are rational
2. Which tends to be more efficient market economies
3. The study of how many Starbucks coffees positive analysis
each work-er produces per shift is an example
of what type of analysis?
4. Suppose Starbucks is unhappy with how many coffees normative
analysis
are produced per worker per shift and
decides they want to consider adding robot
baristas to their work-force. To determine
whether or not this is a good idea, they hire a
consulting firm to do what type of analysis for
them?
5. Suppose you are about to graduate from activity
college and are given the opportunity to earn until...
$40,000 next year working for the
government, $50,000 next year work-ing for a 7. You decide
consulting firm, or $0 going to graduate to sell a
school next year.; What is the opportunity desk that
cost of de-ciding to go to graduate school? you no
longer
6. Economists believe that you should do any need on
1/
35
,ECON 202 FINAL EXAM - OLE MISS, TRACHMAN
QUESTIONS & ELABORATED COMPLETE ANSWERS
Facebook marketplace. You price the desk at $50,000
$100 and find a buyer who was looking for a
desk of similar size and price so you agree to
sell your desk to this buyer,
MB=MC
voluntary exchange
2/
35
,ECON 202 FINAL EXAM - OLE MISS, TRACHMAN
QUESTIONS & ELABORATED COMPLETE ANSWERS
who is very excited to receive the item. Which
of the following economic terms best describes
this?
microeconomics
8. The study of why a family may choose one
grocery store over another is an example of
something stud-ied in...
microeconomics
9. The study of why a firm may pay its
employees on an unbalanced scale is an
example of something studied in...
10. The study of why a city may face rising unemployment
macroeconomics
is an example of something studied in...
11. When the price of a good increases, the decreases
quantity de-manded...
12. Which of the following are components of a many buyers and
perfectly competitive market? sellers; all firms selling
identical products; no
barriers to new firms
entering the market
13. Purchasing power is the driver of which effect? income ettect
14. Suppose you drink a lot of coffee in college and opt for an inferior
good
Dunkin. Once you graduate and make a much
greater income, you start choosing Starbucks
for your coffee fix. This would make Dunkin
coffee...
3/
35
,ECON 202 FINAL EXAM - OLE MISS, TRACHMAN
QUESTIONS & ELABORATED COMPLETE ANSWERS
15. When will people search harder for substitutes for oil? when the price
of oil is
high
16. If the price of cars falls, are carmakers likely to make... fewer cars
4/
35
QUESTIONS & ELABORATED COMPLETE ANSWERS
1. Which of the following are the key economic assump- Optimal
decisions are
tions that we discussed this week? made at the margin;
People respond to
eco-nomic
incentives; People
are rational
2. Which tends to be more efficient market economies
3. The study of how many Starbucks coffees positive analysis
each work-er produces per shift is an example
of what type of analysis?
4. Suppose Starbucks is unhappy with how many coffees normative
analysis
are produced per worker per shift and
decides they want to consider adding robot
baristas to their work-force. To determine
whether or not this is a good idea, they hire a
consulting firm to do what type of analysis for
them?
5. Suppose you are about to graduate from activity
college and are given the opportunity to earn until...
$40,000 next year working for the
government, $50,000 next year work-ing for a 7. You decide
consulting firm, or $0 going to graduate to sell a
school next year.; What is the opportunity desk that
cost of de-ciding to go to graduate school? you no
longer
6. Economists believe that you should do any need on
1/
35
,ECON 202 FINAL EXAM - OLE MISS, TRACHMAN
QUESTIONS & ELABORATED COMPLETE ANSWERS
Facebook marketplace. You price the desk at $50,000
$100 and find a buyer who was looking for a
desk of similar size and price so you agree to
sell your desk to this buyer,
MB=MC
voluntary exchange
2/
35
,ECON 202 FINAL EXAM - OLE MISS, TRACHMAN
QUESTIONS & ELABORATED COMPLETE ANSWERS
who is very excited to receive the item. Which
of the following economic terms best describes
this?
microeconomics
8. The study of why a family may choose one
grocery store over another is an example of
something stud-ied in...
microeconomics
9. The study of why a firm may pay its
employees on an unbalanced scale is an
example of something studied in...
10. The study of why a city may face rising unemployment
macroeconomics
is an example of something studied in...
11. When the price of a good increases, the decreases
quantity de-manded...
12. Which of the following are components of a many buyers and
perfectly competitive market? sellers; all firms selling
identical products; no
barriers to new firms
entering the market
13. Purchasing power is the driver of which effect? income ettect
14. Suppose you drink a lot of coffee in college and opt for an inferior
good
Dunkin. Once you graduate and make a much
greater income, you start choosing Starbucks
for your coffee fix. This would make Dunkin
coffee...
3/
35
,ECON 202 FINAL EXAM - OLE MISS, TRACHMAN
QUESTIONS & ELABORATED COMPLETE ANSWERS
15. When will people search harder for substitutes for oil? when the price
of oil is
high
16. If the price of cars falls, are carmakers likely to make... fewer cars
4/
35
