ECO2023 FSU Hammock Final Exams 1
& 2 With All Correct Answers 2026-2027
Updated.
tax revenue - Answer The number of units sold times the tax per unit.
price ceiling - Answer A maximum legal price.
price floor - Answer A minimum legal price.
the law of supply - Answer As the price of a good rises, the quantity supplied rises.
consumer surplus - Answer The difference between what consumers are willing to pay, and
what they actually pay.
producer surplus - Answer The difference between the price of a good and the marginal cost
of producing it.
deadweight loss - Answer Loss of total surplus, which indicates that the current allocation of
goods and resources is not efficient.
the law of demand - Answer As the price of a good rises, the quantity demanded falls.
small, incremental adjustment - Answer A marginal change usually is a
-total surplus is maximized.
-quantity supplied equals quantity demanded.
-an increase or decrease in output would be inefficient. - Answer in equilibrium...
Taxes should be avoided because they create deadweight loss. - Answer Which of the
following statements is normative?
Maximian has a comparative advantage in stopping barbarians. - Answer Diocletian and
Maximian are Roman Co-emperors. They each have two things they can do: Stop rampaging
barbarian armies, and stop internal rebellions.
, If Diocletian puts all his effort into stopping barbarians, he can stop 1 barbarian army. If he puts
all his effort into stopping rebellions, he can stop 4 rebellions.
If Maximian puts all his effort into stopping barbarians, he can stop 4 barbarian armies. If he
puts all his effort into stopping rebellions, he can stop 1 rebellion.
Which of the statements below are correct?
the low opportunity cost producer. - Answer According to the Law of Comparative Advantage,
both individuals and nations will be able to produce a larger joint output if each productive
activity is undertaken by...
price rises, quantity falls. - Answer The market for dry-erase markers is in equilibrium, but then
the cost of dry-erase ink (which is used to produce the markers) rises. What happens in the
market for dry-erase markers?
an increase in the price of oranges - Answer Which of the following will most likely result from
a destruction of half of the Florida orange crop due to a hard freeze?
The supply of beef would increase, decreasing beef prices. - Answer How would a decrease in
the price of the feed grains used to feed cattle affect the market for beef?
graph B - Answer Suppose the market for Brussells sprouts is in equilibrium. Several cool, hip,
groovy movie stars begin talking about their great love of Brussells sprouts. Many consumers
decide that they, too, want to be cool, hip, and groovy, so they emulate these celebrities.
Which of the diagrams below depicts what happens in the market for Brussells sprouts?
Exam 1 supply and demand shifts.jpg
Price will increase, and quantity will increase. - Answer After a hurricane in Florida knocked
out the regional water supply for several days, the demand for bottled water increased sharply.
In a market economy, how will this increase in demand affect the equilibrium price and quantity
of bottled water?
demand curve shifting to the right, with no change in supply. - Answer Last year, 1,000 cases
of bottled water were sold at $5; this year, 1,200 cases were sold at $7. These data could be
explained by the
& 2 With All Correct Answers 2026-2027
Updated.
tax revenue - Answer The number of units sold times the tax per unit.
price ceiling - Answer A maximum legal price.
price floor - Answer A minimum legal price.
the law of supply - Answer As the price of a good rises, the quantity supplied rises.
consumer surplus - Answer The difference between what consumers are willing to pay, and
what they actually pay.
producer surplus - Answer The difference between the price of a good and the marginal cost
of producing it.
deadweight loss - Answer Loss of total surplus, which indicates that the current allocation of
goods and resources is not efficient.
the law of demand - Answer As the price of a good rises, the quantity demanded falls.
small, incremental adjustment - Answer A marginal change usually is a
-total surplus is maximized.
-quantity supplied equals quantity demanded.
-an increase or decrease in output would be inefficient. - Answer in equilibrium...
Taxes should be avoided because they create deadweight loss. - Answer Which of the
following statements is normative?
Maximian has a comparative advantage in stopping barbarians. - Answer Diocletian and
Maximian are Roman Co-emperors. They each have two things they can do: Stop rampaging
barbarian armies, and stop internal rebellions.
, If Diocletian puts all his effort into stopping barbarians, he can stop 1 barbarian army. If he puts
all his effort into stopping rebellions, he can stop 4 rebellions.
If Maximian puts all his effort into stopping barbarians, he can stop 4 barbarian armies. If he
puts all his effort into stopping rebellions, he can stop 1 rebellion.
Which of the statements below are correct?
the low opportunity cost producer. - Answer According to the Law of Comparative Advantage,
both individuals and nations will be able to produce a larger joint output if each productive
activity is undertaken by...
price rises, quantity falls. - Answer The market for dry-erase markers is in equilibrium, but then
the cost of dry-erase ink (which is used to produce the markers) rises. What happens in the
market for dry-erase markers?
an increase in the price of oranges - Answer Which of the following will most likely result from
a destruction of half of the Florida orange crop due to a hard freeze?
The supply of beef would increase, decreasing beef prices. - Answer How would a decrease in
the price of the feed grains used to feed cattle affect the market for beef?
graph B - Answer Suppose the market for Brussells sprouts is in equilibrium. Several cool, hip,
groovy movie stars begin talking about their great love of Brussells sprouts. Many consumers
decide that they, too, want to be cool, hip, and groovy, so they emulate these celebrities.
Which of the diagrams below depicts what happens in the market for Brussells sprouts?
Exam 1 supply and demand shifts.jpg
Price will increase, and quantity will increase. - Answer After a hurricane in Florida knocked
out the regional water supply for several days, the demand for bottled water increased sharply.
In a market economy, how will this increase in demand affect the equilibrium price and quantity
of bottled water?
demand curve shifting to the right, with no change in supply. - Answer Last year, 1,000 cases
of bottled water were sold at $5; this year, 1,200 cases were sold at $7. These data could be
explained by the
