ECN 104 Mid Term Exam Questions
with 100% Correct Answers
As your hourly wage rises, your
A) marginal opportunity cost of attending school increases.
B) value of your best alternative decreases.
C) marginal opportunity cost of attending school decreases.
D) marginal benefit of attending school decreases.
E) ability to concentrate decreases. - Answer- A) marginal opportunity cost of attending
school increases.
A fall in the price of a product results in a decrease in quantity supplied. This illustrates
A) the law of supply.
B) the law of demand.
C) a change in supply.
D) an inferior good.
E) technological improvement. - Answer- A) the law of supply.
A rise in the price of a service
A) decreases demand for the service.
B) increases the quantity supplied of the service.
C) decreases demand for the service.
D) increases the supply of the service.
E) increases preferences for the service. - Answer- B) increases the quantity supplied of
the service.
Which statements are true?
1 Read a supply curve up and over.
2 Read a marginal cost curve up and over.
3 Read a supply curve over and down.
4 Read a marginal cost curve over and down.
A) 3 only
B) 1 and 2
C) 1 and 4
D) 2 and 3
E) 2 and 4 - Answer- D) 2 and 3
Which "other factors" are not held constant along a supply curve?
A) the environment
B) the expected future price
C) the number of businesses
, D) the price of the product itself
E) all of the above are not held constant - Answer- D) the price of the product itself
Which "other factors" are held constant along a supply curve?
A) income
B) preferences
C) the number of consumers
D) the price of a related product or service
E) all of the above are held constant - Answer- D) the price of a related product or
service
A shortage creates pressure for the
A) price to fall.
B) price to sit still.
C) price to rise.
D) quantity demanded to increase.
E) quantity supplied to decrease. - Answer- C) price to rise.
Look at Figure 4.2.3. At a price of $12 there is a
A) surplus of 20.
B) shortage of 20.
C) surplus of 10.
D) surplus of 40.
E) shortage of 8. - Answer- A) surplus of 20.
Look at Figure 4.2.3. At a price of $12, how many units are sold in the market?
A) 20 units
B) 30 units
C) 40 units
D) zero units
E) none of the above - Answer- A) 20 units
Look at Figure 4.2.3. At a price of $8 there is
A) a surplus of 20.
B) a shortage of 20.
C) a surplus of 10.
D) a shortage of 10.
E) none of the above. - Answer- E) none of the above.
Look at Figure 4.2.3. At a price of $4, how many units are sold in the market?
A) 20 units
B) 30 units
C) 40 units
D) zero units
E) none of the above - Answer- A) 20 units
with 100% Correct Answers
As your hourly wage rises, your
A) marginal opportunity cost of attending school increases.
B) value of your best alternative decreases.
C) marginal opportunity cost of attending school decreases.
D) marginal benefit of attending school decreases.
E) ability to concentrate decreases. - Answer- A) marginal opportunity cost of attending
school increases.
A fall in the price of a product results in a decrease in quantity supplied. This illustrates
A) the law of supply.
B) the law of demand.
C) a change in supply.
D) an inferior good.
E) technological improvement. - Answer- A) the law of supply.
A rise in the price of a service
A) decreases demand for the service.
B) increases the quantity supplied of the service.
C) decreases demand for the service.
D) increases the supply of the service.
E) increases preferences for the service. - Answer- B) increases the quantity supplied of
the service.
Which statements are true?
1 Read a supply curve up and over.
2 Read a marginal cost curve up and over.
3 Read a supply curve over and down.
4 Read a marginal cost curve over and down.
A) 3 only
B) 1 and 2
C) 1 and 4
D) 2 and 3
E) 2 and 4 - Answer- D) 2 and 3
Which "other factors" are not held constant along a supply curve?
A) the environment
B) the expected future price
C) the number of businesses
, D) the price of the product itself
E) all of the above are not held constant - Answer- D) the price of the product itself
Which "other factors" are held constant along a supply curve?
A) income
B) preferences
C) the number of consumers
D) the price of a related product or service
E) all of the above are held constant - Answer- D) the price of a related product or
service
A shortage creates pressure for the
A) price to fall.
B) price to sit still.
C) price to rise.
D) quantity demanded to increase.
E) quantity supplied to decrease. - Answer- C) price to rise.
Look at Figure 4.2.3. At a price of $12 there is a
A) surplus of 20.
B) shortage of 20.
C) surplus of 10.
D) surplus of 40.
E) shortage of 8. - Answer- A) surplus of 20.
Look at Figure 4.2.3. At a price of $12, how many units are sold in the market?
A) 20 units
B) 30 units
C) 40 units
D) zero units
E) none of the above - Answer- A) 20 units
Look at Figure 4.2.3. At a price of $8 there is
A) a surplus of 20.
B) a shortage of 20.
C) a surplus of 10.
D) a shortage of 10.
E) none of the above. - Answer- E) none of the above.
Look at Figure 4.2.3. At a price of $4, how many units are sold in the market?
A) 20 units
B) 30 units
C) 40 units
D) zero units
E) none of the above - Answer- A) 20 units
