ECP3704 FINAL EXAM QUESTIONS
AND ANSWERS 100% PASS
The income effect means that when the price of a good rises.... - ✔✔the
buying power of your income falls.
The substitution effect - ✔✔reduces the quantity demanded of a good
when its price increases.
The ______ of an uncertain payoff is defined as the weighted average of all
possible outcomes, where the probability of each outcome is used as the
weights - ✔✔Expected value
If employees' activities follow the economists' view of behavior, managers
will be most effective if they can - ✔✔influence the costs and benefits of
employee actions.
1
100% Pass Guarantee Katelyn Whitman, All Rights
, Assume that the quantity of apples is measured on the horizontal axis and
the quantity of oranges is measured on the vertical axis. If the budget line
rotates upward while keeping the same horizontal intercept, it implies that
- ✔✔the price of oranges has decreased.
The budget line - ✔✔shows all the combinations of goods that require the
same total expenditure.
If available income decreases, then - ✔✔the budget line will shift inward.
Marginal costs - ✔✔
If supply increases, then the - ✔✔Equilibrium price goes down
A decrease in demand means that quantity demanded falls - ✔✔at all
prices
If supply increases and demand remains unchanged, equilibrium quantity
will _______ and equilibrium price will ______________. - ✔✔rise, fall
The law of demand indicates that as the price of a good increases, the
quantity that - ✔✔Buyers are able to purchase decreases
2
100% Pass Guarantee Katelyn Whitman, All Rights
AND ANSWERS 100% PASS
The income effect means that when the price of a good rises.... - ✔✔the
buying power of your income falls.
The substitution effect - ✔✔reduces the quantity demanded of a good
when its price increases.
The ______ of an uncertain payoff is defined as the weighted average of all
possible outcomes, where the probability of each outcome is used as the
weights - ✔✔Expected value
If employees' activities follow the economists' view of behavior, managers
will be most effective if they can - ✔✔influence the costs and benefits of
employee actions.
1
100% Pass Guarantee Katelyn Whitman, All Rights
, Assume that the quantity of apples is measured on the horizontal axis and
the quantity of oranges is measured on the vertical axis. If the budget line
rotates upward while keeping the same horizontal intercept, it implies that
- ✔✔the price of oranges has decreased.
The budget line - ✔✔shows all the combinations of goods that require the
same total expenditure.
If available income decreases, then - ✔✔the budget line will shift inward.
Marginal costs - ✔✔
If supply increases, then the - ✔✔Equilibrium price goes down
A decrease in demand means that quantity demanded falls - ✔✔at all
prices
If supply increases and demand remains unchanged, equilibrium quantity
will _______ and equilibrium price will ______________. - ✔✔rise, fall
The law of demand indicates that as the price of a good increases, the
quantity that - ✔✔Buyers are able to purchase decreases
2
100% Pass Guarantee Katelyn Whitman, All Rights
