ECON 202 OLE MISS
COMPREHENSIVE EXAM QUESTIONS
& ACCURATE ANSWERS RATED 100%
CORRECT NEWEST VERSION
Which of the following is not an example of scarcity?
a.
Each member of a household cannot get everything he or she wants.
b.
Every individual in society cannot attain the highest standard of living to which he or she
might aspire.
c.
Only some people can afford to buy a BMW automobile.
d.
Miranda has an unlimited supply of oranges in her orchard. - Correct Answer ✔✔ D
A demand curve reflects each of the following except the
a.
highest price buyers are willing to pay for each quantity.
b.
willingness to pay of all buyers in the market.
c.
ability of buyers to obtain the quantity they desire.
d.
value each buyer in the market places on the good. - Correct Answer ✔✔ C
If a market is allowed to move freely to its equilibrium price and quantity, then an
increase in supply will
a.
increase consumer surplus.
b.
reduce consumer surplus.
c.
not affect consumer surplus.
d.
Any of the above are possible. - Correct Answer ✔✔ A
If the United States changed its laws to allow for the legal sale of a kidney, which of the
following is likely to occur?
a.
The price of kidneys would rise to balance supply and demand.
,b.
The gains from trade would make both buyers and sellers better off.
c.
Thousands of lives would be saved.
d.
All of the above are correct - Correct Answer ✔✔ D
Market power refers to the
a.
government regulations imposed on the sellers in a market.
b.
forces of supply and demand in determining equilibrium price.
c.
ability of market participants to influence price.
d.
side effects that may occur in a market. - Correct Answer ✔✔ C
If the current allocation of resources in the market for wallpaper is efficient,
a.
producer surplus equals consumer surplus in the market for wallpaper.
b.
the market for wallpaper is in equilibrium.
c.
on the last unit of wallpaper that was produced and sold, the value to buyers exceeded
the cost to sellers.
d.
All of the above are correct. - Correct Answer ✔✔ B
When a buyer's willingness to pay for a good is equal to the price of the good, the
a.
buyer is indifferent between buying the good and not buying it.
b.
price of the good exceeds the value that the buyer places on the good.
c.
buyer will buy as much of the good as the buyer's budget allows.
d.
buyer's consumer surplus for that good is maximized. - Correct Answer ✔✔ A
The particular price that results in quantity supplied being equal to quantity demanded is
the best price because it
a.
minimizes the expenditure of buyers.
b.
maximizes costs of the seller.
c.
maximizes the combined welfare of buyers and sellers.
,d.
maximizes tax revenue for the government. - Correct Answer ✔✔ C
Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he
wishes at a price of $0.55 per can. On a particular day, he is willing to pay $0.95 for the
first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for the fourth can.
Assume Abraham is rational in deciding how many cans to buy. His consumer surplus is
a.
$0.70.
b.
$1.00.
c.
$0.50.
d.
$0.60. - Correct Answer ✔✔ A
Inefficiency exists in an economy when a good is
a.
not produced because buyers do not value it very highly.
b.
not being consumed by buyers who value it most highly.
c.
being produced with less than all available resources.
d.
not distributed fairly among buyers. - Correct Answer ✔✔ B
Producer surplus directly measures
a.
the well-being of society as a whole.
b.
sellers' willingness to sell.
c.
the well-being of sellers.
d.
the well-being of buyers and sellers. - Correct Answer ✔✔ C
A price ceiling will be binding only if it is set
a.
above the equilibrium price.
b.
equal to the equilibrium price.
c.
either above or below the equilibrium price.
d.
, below the equilibrium price. - Correct Answer ✔✔ D
A legal maximum on the price at which a good can be sold is called a price
a.
subsidy.
b.
ceiling.
c.
support.
d.
floor. - Correct Answer ✔✔ B
A tax imposed on the sellers of a good will raise the
a.
price paid by buyers and lower the equilibrium quantity.
b.
price paid by buyers and raise the equilibrium quantity.
c.
effective price received by sellers and raise the equilibrium quantity.
d.
effective price received by sellers and lower the equilibrium quantity. - Correct Answer
✔✔ A
A price ceiling is binding when it is set
a.
above the equilibrium price, causing a shortage.
b.
below the equilibrium price, causing a surplus.
c.
below the equilibrium price, causing a shortage.
d.
above the equilibrium price, causing a surplus. - Correct Answer ✔✔ C
A price floor is binding when it is set
a.
below the equilibrium price, causing a shortage.
b.
above the equilibrium price, causing a shortage.
c.
above the equilibrium price, causing a surplus.
d.
below the equilibrium price, causing a surplus. - Correct Answer ✔✔ C
A surplus results when a
a.
binding price floor is removed from a market.
COMPREHENSIVE EXAM QUESTIONS
& ACCURATE ANSWERS RATED 100%
CORRECT NEWEST VERSION
Which of the following is not an example of scarcity?
a.
Each member of a household cannot get everything he or she wants.
b.
Every individual in society cannot attain the highest standard of living to which he or she
might aspire.
c.
Only some people can afford to buy a BMW automobile.
d.
Miranda has an unlimited supply of oranges in her orchard. - Correct Answer ✔✔ D
A demand curve reflects each of the following except the
a.
highest price buyers are willing to pay for each quantity.
b.
willingness to pay of all buyers in the market.
c.
ability of buyers to obtain the quantity they desire.
d.
value each buyer in the market places on the good. - Correct Answer ✔✔ C
If a market is allowed to move freely to its equilibrium price and quantity, then an
increase in supply will
a.
increase consumer surplus.
b.
reduce consumer surplus.
c.
not affect consumer surplus.
d.
Any of the above are possible. - Correct Answer ✔✔ A
If the United States changed its laws to allow for the legal sale of a kidney, which of the
following is likely to occur?
a.
The price of kidneys would rise to balance supply and demand.
,b.
The gains from trade would make both buyers and sellers better off.
c.
Thousands of lives would be saved.
d.
All of the above are correct - Correct Answer ✔✔ D
Market power refers to the
a.
government regulations imposed on the sellers in a market.
b.
forces of supply and demand in determining equilibrium price.
c.
ability of market participants to influence price.
d.
side effects that may occur in a market. - Correct Answer ✔✔ C
If the current allocation of resources in the market for wallpaper is efficient,
a.
producer surplus equals consumer surplus in the market for wallpaper.
b.
the market for wallpaper is in equilibrium.
c.
on the last unit of wallpaper that was produced and sold, the value to buyers exceeded
the cost to sellers.
d.
All of the above are correct. - Correct Answer ✔✔ B
When a buyer's willingness to pay for a good is equal to the price of the good, the
a.
buyer is indifferent between buying the good and not buying it.
b.
price of the good exceeds the value that the buyer places on the good.
c.
buyer will buy as much of the good as the buyer's budget allows.
d.
buyer's consumer surplus for that good is maximized. - Correct Answer ✔✔ A
The particular price that results in quantity supplied being equal to quantity demanded is
the best price because it
a.
minimizes the expenditure of buyers.
b.
maximizes costs of the seller.
c.
maximizes the combined welfare of buyers and sellers.
,d.
maximizes tax revenue for the government. - Correct Answer ✔✔ C
Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he
wishes at a price of $0.55 per can. On a particular day, he is willing to pay $0.95 for the
first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for the fourth can.
Assume Abraham is rational in deciding how many cans to buy. His consumer surplus is
a.
$0.70.
b.
$1.00.
c.
$0.50.
d.
$0.60. - Correct Answer ✔✔ A
Inefficiency exists in an economy when a good is
a.
not produced because buyers do not value it very highly.
b.
not being consumed by buyers who value it most highly.
c.
being produced with less than all available resources.
d.
not distributed fairly among buyers. - Correct Answer ✔✔ B
Producer surplus directly measures
a.
the well-being of society as a whole.
b.
sellers' willingness to sell.
c.
the well-being of sellers.
d.
the well-being of buyers and sellers. - Correct Answer ✔✔ C
A price ceiling will be binding only if it is set
a.
above the equilibrium price.
b.
equal to the equilibrium price.
c.
either above or below the equilibrium price.
d.
, below the equilibrium price. - Correct Answer ✔✔ D
A legal maximum on the price at which a good can be sold is called a price
a.
subsidy.
b.
ceiling.
c.
support.
d.
floor. - Correct Answer ✔✔ B
A tax imposed on the sellers of a good will raise the
a.
price paid by buyers and lower the equilibrium quantity.
b.
price paid by buyers and raise the equilibrium quantity.
c.
effective price received by sellers and raise the equilibrium quantity.
d.
effective price received by sellers and lower the equilibrium quantity. - Correct Answer
✔✔ A
A price ceiling is binding when it is set
a.
above the equilibrium price, causing a shortage.
b.
below the equilibrium price, causing a surplus.
c.
below the equilibrium price, causing a shortage.
d.
above the equilibrium price, causing a surplus. - Correct Answer ✔✔ C
A price floor is binding when it is set
a.
below the equilibrium price, causing a shortage.
b.
above the equilibrium price, causing a shortage.
c.
above the equilibrium price, causing a surplus.
d.
below the equilibrium price, causing a surplus. - Correct Answer ✔✔ C
A surplus results when a
a.
binding price floor is removed from a market.
