GLOMM IU ECON 2026/2027 FINAL
EXAM B251 CANVAS QUIZ, ALL ECON
END OF CHAPTER QUIZ QUESTIONS
AND ANSWERS GRADED A+
In the US, the growth rate of GDP between 1900 and 2000 was roughly constant at
2% per year. This
a. is consistent with the predictions of the solow growth model
b. is inconsistent with the predictions of the solow growth model
c. implies that real per capita GDP doubles every 25 years
d. implies that real per capita GDP doubles every 45 years
a. is consistent with the predictions of the solow growth model
because it has a constant increase then levels out
Consider the farmer-fishery externality example with Cousin bargaining between
farmer and fishery. But now consider that there is one farmer but seven fisheries.
Cousin bargaining requires effort, time and money to deal with strategic and legal
issues. The presence of seven fisheries can be expected to
a. generate a free rider problem for the farmer
b. generate a free rider problem for the fisheries and hence generate less than
optimal effort on the part of the fisheries
c. b. generate a free rider problem for the fisheries and hence generate greater than
optimal effort on the part of the fisheries
d. generate a free rider problem for the fisheries and hence generate optimal effort
on the part of the fisheries
b. generate a free rider problem for the fisheries and hence generate less than
optimal effort on the part of the fisheries
,since there is so many losing one wont affect them as much if the farmer lost the
one they had
The point of creating a parallel universe in the social sciences is to
a. confirm a hypothesis
b. negate a hypothesis
c. detect correlations
d. detect a casual relationship
d. detect a casual relationship
You are enrolled in a finite math class in college. You want and need a grade of A
to maintain your scholarship. For any grade lower than an A you will lose your
scholarship. You know that getting that A will require at least 12 hours of good
hard concentrated studying per week. This is an example of
a. specialization
b. opportunity cost
c. decreasing returns
d. increasing returns
d. increasing returns
because the hard studying will pay off
In the economic history of the world illustrated in class
a. there are large differences in economic growth rates across countries before
1700
b. there are large differences in levels of income across countries before 1700
,c. the industrial revolution occurred around 1600
d. the industrial revolution occurred around 1750
a. there are large differences in economic growth rates across countries before
1700
which of the following definitely increases demand?
a. supply becomes more elastic
b. income increases
c. the price of a substitute increases
d. the price of a substitute decreases
c. the price of a substitute increases
An MIT econ class is
a. a public good because it is non exclusive
b. a public good because it is exclusive
c. a private good because it is non rival
d. a club good
d. a club good
because it is a common resource for the people at MIT and it is non rival and
excludable
The free rider problem exists because the good to be provided is
a. exclusive
, b. non exclusive
c. rival and non exclusive
d. non rival and non exclusive
b. non exclusive
because free rider means one does something and multiple people can benefit
in the classic free rider problem of public goods provision, there is
a. under production
b. efficient production
c. over production
d. optimal production
a. under production
because free rider problem of public goods always has underproduction and
overconsumption
Imagine that there are 10 types of firms with 10 different marginal costs from
lowest to highest 1,2,3,...8,9,10. Higher quality is associated with higher marginal
cost. Consumers cannot detect quality of each type, but only have some vague
notion of the average quality. Then we would expect that the only firms to survive
in this market are firms with marginal cost
a. 10
b. 7
c. 4
EXAM B251 CANVAS QUIZ, ALL ECON
END OF CHAPTER QUIZ QUESTIONS
AND ANSWERS GRADED A+
In the US, the growth rate of GDP between 1900 and 2000 was roughly constant at
2% per year. This
a. is consistent with the predictions of the solow growth model
b. is inconsistent with the predictions of the solow growth model
c. implies that real per capita GDP doubles every 25 years
d. implies that real per capita GDP doubles every 45 years
a. is consistent with the predictions of the solow growth model
because it has a constant increase then levels out
Consider the farmer-fishery externality example with Cousin bargaining between
farmer and fishery. But now consider that there is one farmer but seven fisheries.
Cousin bargaining requires effort, time and money to deal with strategic and legal
issues. The presence of seven fisheries can be expected to
a. generate a free rider problem for the farmer
b. generate a free rider problem for the fisheries and hence generate less than
optimal effort on the part of the fisheries
c. b. generate a free rider problem for the fisheries and hence generate greater than
optimal effort on the part of the fisheries
d. generate a free rider problem for the fisheries and hence generate optimal effort
on the part of the fisheries
b. generate a free rider problem for the fisheries and hence generate less than
optimal effort on the part of the fisheries
,since there is so many losing one wont affect them as much if the farmer lost the
one they had
The point of creating a parallel universe in the social sciences is to
a. confirm a hypothesis
b. negate a hypothesis
c. detect correlations
d. detect a casual relationship
d. detect a casual relationship
You are enrolled in a finite math class in college. You want and need a grade of A
to maintain your scholarship. For any grade lower than an A you will lose your
scholarship. You know that getting that A will require at least 12 hours of good
hard concentrated studying per week. This is an example of
a. specialization
b. opportunity cost
c. decreasing returns
d. increasing returns
d. increasing returns
because the hard studying will pay off
In the economic history of the world illustrated in class
a. there are large differences in economic growth rates across countries before
1700
b. there are large differences in levels of income across countries before 1700
,c. the industrial revolution occurred around 1600
d. the industrial revolution occurred around 1750
a. there are large differences in economic growth rates across countries before
1700
which of the following definitely increases demand?
a. supply becomes more elastic
b. income increases
c. the price of a substitute increases
d. the price of a substitute decreases
c. the price of a substitute increases
An MIT econ class is
a. a public good because it is non exclusive
b. a public good because it is exclusive
c. a private good because it is non rival
d. a club good
d. a club good
because it is a common resource for the people at MIT and it is non rival and
excludable
The free rider problem exists because the good to be provided is
a. exclusive
, b. non exclusive
c. rival and non exclusive
d. non rival and non exclusive
b. non exclusive
because free rider means one does something and multiple people can benefit
in the classic free rider problem of public goods provision, there is
a. under production
b. efficient production
c. over production
d. optimal production
a. under production
because free rider problem of public goods always has underproduction and
overconsumption
Imagine that there are 10 types of firms with 10 different marginal costs from
lowest to highest 1,2,3,...8,9,10. Higher quality is associated with higher marginal
cost. Consumers cannot detect quality of each type, but only have some vague
notion of the average quality. Then we would expect that the only firms to survive
in this market are firms with marginal cost
a. 10
b. 7
c. 4
