UNT ECON 1100 EXAM 1 UPDATED QUESTIONS AND ANSWERS
Scarcity exist because - CORRECT ANSWER✅✅✅currently available resources arnt sufficient enough
to produce everything people want and need
Economics - CORRECT ANSWER✅✅✅The science of scarcity. Its balance between unlimited wants
and scarce resources.
The government should raise taxes is a ... - CORRECT ANSWER✅✅✅normative statement
normative statement - CORRECT ANSWER✅✅✅an opinion
positive statement - CORRECT ANSWER✅✅✅a fact
which would be studied in a microeconomics course - CORRECT ANSWER✅✅✅The strategy used by
owners of a competitive firm to max profits
which of the following is not an example of a factor of production referred to as capital - CORRECT
ANSWER✅✅✅money used to start a business
opportunity cost of attending school is - CORRECT ANSWER✅✅✅highest for someone who gave up
good jobs to attend school
command economy is characterized by - CORRECT ANSWER✅✅✅government ownership or control
of most resources.
Remember this with "the gov is in command"
Rightward shift of a ppf indicates - CORRECT ANSWER✅✅✅economic growth has occured
, Two parties can enjoy gains from trade by specializing in the activities for which - CORRECT
ANSWER✅✅✅a comparaitive advantage exist
law of demand - CORRECT ANSWER✅✅✅inverse of price and quantity
Which would best explain a decrease in the demand for shrimp - CORRECT ANSWER✅✅✅a decrease
in the price of crab legs (a substitute for shrimp)
Which best explains a decrease in the supply of bicycles - CORRECT ANSWER✅✅✅a decrease in the
number of bicycle manufactururs
Technological improvements that reduce the cost of manufacturing personal computers combined with
a decrease in demand for personal computers results in - CORRECT ANSWER✅✅✅either a or b
an increase in equilibrium quantity and decrease in equilibrium price or decrease in both.
Income elasticity of demand is calculated as - CORRECT ANSWER✅✅✅% of change in quanitiy
demanded/ % of change in price
Interpret price elasticity of demand...+ is - CORRECT ANSWER✅✅✅Normal good
Interpret price elasticity of demand ... - is - CORRECT ANSWER✅✅✅Inferior good
< 1 is - CORRECT ANSWER✅✅✅inelastic
> 1 is - CORRECT ANSWER✅✅✅Elastic
Eo = 1 - CORRECT ANSWER✅✅✅unit
The demand of a product will be more elastic when - CORRECT ANSWER✅✅✅The price of a product
is large relative to income
Scarcity exist because - CORRECT ANSWER✅✅✅currently available resources arnt sufficient enough
to produce everything people want and need
Economics - CORRECT ANSWER✅✅✅The science of scarcity. Its balance between unlimited wants
and scarce resources.
The government should raise taxes is a ... - CORRECT ANSWER✅✅✅normative statement
normative statement - CORRECT ANSWER✅✅✅an opinion
positive statement - CORRECT ANSWER✅✅✅a fact
which would be studied in a microeconomics course - CORRECT ANSWER✅✅✅The strategy used by
owners of a competitive firm to max profits
which of the following is not an example of a factor of production referred to as capital - CORRECT
ANSWER✅✅✅money used to start a business
opportunity cost of attending school is - CORRECT ANSWER✅✅✅highest for someone who gave up
good jobs to attend school
command economy is characterized by - CORRECT ANSWER✅✅✅government ownership or control
of most resources.
Remember this with "the gov is in command"
Rightward shift of a ppf indicates - CORRECT ANSWER✅✅✅economic growth has occured
, Two parties can enjoy gains from trade by specializing in the activities for which - CORRECT
ANSWER✅✅✅a comparaitive advantage exist
law of demand - CORRECT ANSWER✅✅✅inverse of price and quantity
Which would best explain a decrease in the demand for shrimp - CORRECT ANSWER✅✅✅a decrease
in the price of crab legs (a substitute for shrimp)
Which best explains a decrease in the supply of bicycles - CORRECT ANSWER✅✅✅a decrease in the
number of bicycle manufactururs
Technological improvements that reduce the cost of manufacturing personal computers combined with
a decrease in demand for personal computers results in - CORRECT ANSWER✅✅✅either a or b
an increase in equilibrium quantity and decrease in equilibrium price or decrease in both.
Income elasticity of demand is calculated as - CORRECT ANSWER✅✅✅% of change in quanitiy
demanded/ % of change in price
Interpret price elasticity of demand...+ is - CORRECT ANSWER✅✅✅Normal good
Interpret price elasticity of demand ... - is - CORRECT ANSWER✅✅✅Inferior good
< 1 is - CORRECT ANSWER✅✅✅inelastic
> 1 is - CORRECT ANSWER✅✅✅Elastic
Eo = 1 - CORRECT ANSWER✅✅✅unit
The demand of a product will be more elastic when - CORRECT ANSWER✅✅✅The price of a product
is large relative to income
