Econ 202 Hayes Quiz answers & Mid-Term NEWEST
EXAM 2026-2027 COMPLETE 150 QUESTIONS
AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+
"Essential" water is cheaper than "nonessential" diamonds because
A. new industrial uses for diamonds have been discovered.
B. the supply of water is great relative to demand and the supply of diamonds is small relative to
demand.
C. although the total utility of diamonds is greater, their marginal utility is small.
D. the supply of diamonds is great relative to demand and the supply of water is small relative to
demand. - CORRECT ANSWER: the supply of water is great relative to demand and the supply
of diamonds is small relative to demand.
A consumer who has a limited budget will maximize utility or satisfaction when the
A. ratios of the marginal utility of each product purchased divided by its price are equal.
B. total utility derived from each product purchased is the same.
C. marginal utility of each product purchased is the same.
D. price of each product purchased is the same. - CORRECT ANSWER: ratios of the marginal
utility of each product purchased divided by its price are equal.
A demand curve
A. shows the relationship between price and quantity supplied.
B. indicates the quantity demanded at each price in a series of prices.
C. graphs as an upsloping line.
,D. shows the relationship between income and spending. - CORRECT ANSWER: indicates the
quantity demanded at each price in a series of prices.
A firm can sell as much as it wants at a constant price. Demand is thus
A. perfectly inelastic.
B. perfectly elastic.
C. relatively inelastic.
D. relatively elastic. - CORRECT ANSWER: perfectly elastic.
A firm's supply curve is upsloping because
A. the expansion of production necessitates the use of qualitatively inferior inputs.
B. mass production economies are associated with larger levels of output.
C. consumers envision a positive relationship between price and quality.
D. beyond some point, the production costs of additional units of output will rise. - CORRECT
ANSWER: beyond some point, the production costs of additional units of output will rise.
A government subsidy to the producers of a product
a. reduces product supply.
B. increases product supply.
C. reduces product demand.
D. increases product demand. - CORRECT ANSWER: increases product supply.
A government tax per unit of output reduces supply.
True/False - CORRECT ANSWER: true
,A market
A. reflects upsloping demand and downsloping supply curves.
B. entails the exchange of goods, but not services.
C. is an institution that brings together buyers and sellers.
D. always requires face-to-face contact between buyer and seller. - CORRECT ANSWER: is an
institution that brings together buyers and sellers.
A perfectly inelastic demand curve
A. has a price elasticity coefficient greater than unity.
B. has a price elasticity coefficient of unity throughout.
C. graphs as a line parallel to the vertical axis.
D. graphs as a line parallel to the horizontal axis. - CORRECT ANSWER: graphs as a line
parallel to the vertical axis.
A perfectly inelastic demand schedule
A. rises upward and to the right but has a constant slope.
B. can be represented by a line parallel to the vertical axis.
C. cannot be shown on a two-dimensional graph.
D. can be represented by a line parallel to the horizontal axis. - CORRECT ANSWER: can be
represented by a line parallel to the vertical axis.
A person should consume more of something when its marginal
A. benefit exceeds its marginal cost.
, B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better. - CORRECT ANSWER: benefit exceeds its marginal cost.
A person should consume more of something when its marginal
A.benefit exceeds its marginal cost.
B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better. - CORRECT ANSWER: D. benefit exceeds its marginal
A price floor in a competitive market will result in persistent shortages of a product.
True/False - CORRECT ANSWER: false
A price floor in a competitive market will result in persistent shortages of a product.
True/False - CORRECT ANSWER: False
A price floor means that
A. inflation is severe in this particular market.
B. sellers are artificially restricting supply to raise price.
C. government is imposing a maximum legal price that is typically below the equilibrium price.
D. government is imposing a minimum legal price that is typically above the equilibrium price. -
CORRECT ANSWER: government is imposing a minimum legal price that is typically above
the equilibrium price.
EXAM 2026-2027 COMPLETE 150 QUESTIONS
AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+
"Essential" water is cheaper than "nonessential" diamonds because
A. new industrial uses for diamonds have been discovered.
B. the supply of water is great relative to demand and the supply of diamonds is small relative to
demand.
C. although the total utility of diamonds is greater, their marginal utility is small.
D. the supply of diamonds is great relative to demand and the supply of water is small relative to
demand. - CORRECT ANSWER: the supply of water is great relative to demand and the supply
of diamonds is small relative to demand.
A consumer who has a limited budget will maximize utility or satisfaction when the
A. ratios of the marginal utility of each product purchased divided by its price are equal.
B. total utility derived from each product purchased is the same.
C. marginal utility of each product purchased is the same.
D. price of each product purchased is the same. - CORRECT ANSWER: ratios of the marginal
utility of each product purchased divided by its price are equal.
A demand curve
A. shows the relationship between price and quantity supplied.
B. indicates the quantity demanded at each price in a series of prices.
C. graphs as an upsloping line.
,D. shows the relationship between income and spending. - CORRECT ANSWER: indicates the
quantity demanded at each price in a series of prices.
A firm can sell as much as it wants at a constant price. Demand is thus
A. perfectly inelastic.
B. perfectly elastic.
C. relatively inelastic.
D. relatively elastic. - CORRECT ANSWER: perfectly elastic.
A firm's supply curve is upsloping because
A. the expansion of production necessitates the use of qualitatively inferior inputs.
B. mass production economies are associated with larger levels of output.
C. consumers envision a positive relationship between price and quality.
D. beyond some point, the production costs of additional units of output will rise. - CORRECT
ANSWER: beyond some point, the production costs of additional units of output will rise.
A government subsidy to the producers of a product
a. reduces product supply.
B. increases product supply.
C. reduces product demand.
D. increases product demand. - CORRECT ANSWER: increases product supply.
A government tax per unit of output reduces supply.
True/False - CORRECT ANSWER: true
,A market
A. reflects upsloping demand and downsloping supply curves.
B. entails the exchange of goods, but not services.
C. is an institution that brings together buyers and sellers.
D. always requires face-to-face contact between buyer and seller. - CORRECT ANSWER: is an
institution that brings together buyers and sellers.
A perfectly inelastic demand curve
A. has a price elasticity coefficient greater than unity.
B. has a price elasticity coefficient of unity throughout.
C. graphs as a line parallel to the vertical axis.
D. graphs as a line parallel to the horizontal axis. - CORRECT ANSWER: graphs as a line
parallel to the vertical axis.
A perfectly inelastic demand schedule
A. rises upward and to the right but has a constant slope.
B. can be represented by a line parallel to the vertical axis.
C. cannot be shown on a two-dimensional graph.
D. can be represented by a line parallel to the horizontal axis. - CORRECT ANSWER: can be
represented by a line parallel to the vertical axis.
A person should consume more of something when its marginal
A. benefit exceeds its marginal cost.
, B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better. - CORRECT ANSWER: benefit exceeds its marginal cost.
A person should consume more of something when its marginal
A.benefit exceeds its marginal cost.
B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better. - CORRECT ANSWER: D. benefit exceeds its marginal
A price floor in a competitive market will result in persistent shortages of a product.
True/False - CORRECT ANSWER: false
A price floor in a competitive market will result in persistent shortages of a product.
True/False - CORRECT ANSWER: False
A price floor means that
A. inflation is severe in this particular market.
B. sellers are artificially restricting supply to raise price.
C. government is imposing a maximum legal price that is typically below the equilibrium price.
D. government is imposing a minimum legal price that is typically above the equilibrium price. -
CORRECT ANSWER: government is imposing a minimum legal price that is typically above
the equilibrium price.
