ECO 201 PAST EXAM QUESTIONS AND
ANSWERS 100% PASS
T/F
The three economic questions of allocation that and kind me must answer it involves
what to produce how to produce in whom to produce for - ✔✔T
T/F
Stopping remote economic and fission C and markets that are expecting a shortage is by
bringing the actual ticket selling price closer to the true market equilibrium price - ✔✔T
T/F
The law of supply states that an increase in the price of a product will lead to a decrease
in the quantity of a product supplied, ceteris paribus - ✔✔F
T/F
A tariff impose on an imported product will reduce the price of the imported product in
the country that impose the Tariff - ✔✔F
All the following are considered barriers to international trade also called trade
restrictions except...
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
,Quota
product standards
embargoes
outsourcing
subsidies to domestic producers - ✔✔Outsourcing
Suppose that Michael notices that minivans are typically filled with large families with
more than two children he concludes... Driving a minivan causes families to become
larger which of the following is true in regard to pitfall in economic thinking Michael's
conclusion is likely fly due to
The reverse causality problem
The omitted variable problem
The violation of the ceteris paribus condition
The violation of the law to comparative advantage - ✔✔The reverse causality problem
Which of the following is false regarding a command based economy
Decision markers face soft budget constraints
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
, Good are distributed according to each person's need by the central planner
The Economy produces what people are willing and able to buy
Some resources are privately owned but most are communal property - ✔✔The
Economy produces what people are willing and able to buy
From 8 to 11 on Sundays Julio can sleep in volunteer at the Lexington Humane Society
or clean his apartment suppose that Julio decides to volunteer at the Lexington Humane
Society but thinks that if he hadn't he would otherwise have slept in for Julio the
opportunity cost of volunteering at the Humane Society is
cleaning his apartment
sleeping in
three hours of time
cleaning his apartment and sleeping in - ✔✔Sleeping in
An economy's production of 2 goods is efficient if
All members of society consuming equal portions of the goods
The goods are produced using only some of societies available resources
It is impossible to produce more of one good without producing less of another
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 3
ANSWERS 100% PASS
T/F
The three economic questions of allocation that and kind me must answer it involves
what to produce how to produce in whom to produce for - ✔✔T
T/F
Stopping remote economic and fission C and markets that are expecting a shortage is by
bringing the actual ticket selling price closer to the true market equilibrium price - ✔✔T
T/F
The law of supply states that an increase in the price of a product will lead to a decrease
in the quantity of a product supplied, ceteris paribus - ✔✔F
T/F
A tariff impose on an imported product will reduce the price of the imported product in
the country that impose the Tariff - ✔✔F
All the following are considered barriers to international trade also called trade
restrictions except...
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
,Quota
product standards
embargoes
outsourcing
subsidies to domestic producers - ✔✔Outsourcing
Suppose that Michael notices that minivans are typically filled with large families with
more than two children he concludes... Driving a minivan causes families to become
larger which of the following is true in regard to pitfall in economic thinking Michael's
conclusion is likely fly due to
The reverse causality problem
The omitted variable problem
The violation of the ceteris paribus condition
The violation of the law to comparative advantage - ✔✔The reverse causality problem
Which of the following is false regarding a command based economy
Decision markers face soft budget constraints
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
, Good are distributed according to each person's need by the central planner
The Economy produces what people are willing and able to buy
Some resources are privately owned but most are communal property - ✔✔The
Economy produces what people are willing and able to buy
From 8 to 11 on Sundays Julio can sleep in volunteer at the Lexington Humane Society
or clean his apartment suppose that Julio decides to volunteer at the Lexington Humane
Society but thinks that if he hadn't he would otherwise have slept in for Julio the
opportunity cost of volunteering at the Humane Society is
cleaning his apartment
sleeping in
three hours of time
cleaning his apartment and sleeping in - ✔✔Sleeping in
An economy's production of 2 goods is efficient if
All members of society consuming equal portions of the goods
The goods are produced using only some of societies available resources
It is impossible to produce more of one good without producing less of another
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 3
