ECP3704 Exam #1 Review 2025/2026
Exam Questions and Verified Answers |
Already Graded A+
According to the text, successful firms tend to set up
-an organizational architecture that is complex and decisions are "top-
down."
-an organizational architecture that is least expensive and decisions are
"top-down."
-an organizational architecture that links decision making with decision
rights.
-an organizational architecture that keeps decision rights reserved for the
senior management. - 🧠 ANSWER ✔✔an organizational architecture that
links decision making with decision rights.
The income effect means that when the price of a good rises
-the buying power of your income falls.
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,-consumers have an incentive to consume less of the good with a relatively
higher price and more of the good with a relatively lower price.
-your preferences also change.
-you buy more normal goods and fewer inferior goods. - 🧠 ANSWER ✔✔the
buying power of your income falls.
Suppose canned soup is an inferior good. This means that
-when income rises, more cans of soup will be bought.
-when income rises, fewer cans of soup will be bought.
-when income falls, fewer cans of soup will be bought.
-you will never consume canned soup because of its low quality. - 🧠
ANSWER ✔✔when income rises, fewer cans of soup will be bought.
The opportunity cost of an action is the
-Monetary payment the action required
-Value of the most highly valued alternative action given up
-Cost of all alternative actions that could have been taken
-None of the statements associated with this question are correct - 🧠
ANSWER ✔✔Value of the most highly valued alternative action given up
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STATEMENT. ALL RIGHTS RESERVED
, Marginal utility is the
-total happiness obtained from a consumption bundle.
-additional utility obtained by a fall in the price of a good.
-additional utility obtained by consuming one additional unit of a good.
-total amount spent to purchase one additional unit of a good. - 🧠 ANSWER
✔✔additional utility obtained by consuming one additional unit of a good.
The substitution effect
-reduces the quantity demanded of a good when its price increases.
-is equal to the income effect for a normal good.
-is always greater than the income effect.
-is always smaller than the income effect. - 🧠 ANSWER ✔✔reduces the
quantity demanded of a good when its price increases.
Which of the following is an implicit cost of going to college?
-Tuition
-Cost of books and supplies
-Room and board
3
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Exam Questions and Verified Answers |
Already Graded A+
According to the text, successful firms tend to set up
-an organizational architecture that is complex and decisions are "top-
down."
-an organizational architecture that is least expensive and decisions are
"top-down."
-an organizational architecture that links decision making with decision
rights.
-an organizational architecture that keeps decision rights reserved for the
senior management. - 🧠 ANSWER ✔✔an organizational architecture that
links decision making with decision rights.
The income effect means that when the price of a good rises
-the buying power of your income falls.
1
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
,-consumers have an incentive to consume less of the good with a relatively
higher price and more of the good with a relatively lower price.
-your preferences also change.
-you buy more normal goods and fewer inferior goods. - 🧠 ANSWER ✔✔the
buying power of your income falls.
Suppose canned soup is an inferior good. This means that
-when income rises, more cans of soup will be bought.
-when income rises, fewer cans of soup will be bought.
-when income falls, fewer cans of soup will be bought.
-you will never consume canned soup because of its low quality. - 🧠
ANSWER ✔✔when income rises, fewer cans of soup will be bought.
The opportunity cost of an action is the
-Monetary payment the action required
-Value of the most highly valued alternative action given up
-Cost of all alternative actions that could have been taken
-None of the statements associated with this question are correct - 🧠
ANSWER ✔✔Value of the most highly valued alternative action given up
2
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, Marginal utility is the
-total happiness obtained from a consumption bundle.
-additional utility obtained by a fall in the price of a good.
-additional utility obtained by consuming one additional unit of a good.
-total amount spent to purchase one additional unit of a good. - 🧠 ANSWER
✔✔additional utility obtained by consuming one additional unit of a good.
The substitution effect
-reduces the quantity demanded of a good when its price increases.
-is equal to the income effect for a normal good.
-is always greater than the income effect.
-is always smaller than the income effect. - 🧠 ANSWER ✔✔reduces the
quantity demanded of a good when its price increases.
Which of the following is an implicit cost of going to college?
-Tuition
-Cost of books and supplies
-Room and board
3
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
