Econ 2030 Final - Roussel Exam Questions
And Answers
The price of butter, a complement to bread in consumption, decreased - answer
Suppose that in a small town in July, the price of a loaf of bread was $3.99 and 3700
loaves were transacted. In the same small town in August, the price of a loaf of bread
was $4.39 and 4100 loaves were transacted. Which of the following alone can explain
the change in the bread market from July to August?
Less than or Equal to - answer Suppose Federica, a rational consumer, saw a beautiful
Gucci shoulder bag in dark pink polished leather and her reservation price for it was
$1550. Suppose further that she purchased it. It can be concluded with certainty that
the actual price of the shoulder bag was _____ $1550.
Increase; Decrease - answer Suppose that labor costs increase in the machine tool
industry. Everything else held constant, the equilibrium price of machine tools will ____
and the equilibrium quantity transacted will ____.
Increase; Inelastic - answer If a 3% increase in price results in a 2% _____ in quantity
supplied, it can be concluded with certainty that supply is price ____.
Demand for; Inelastic - answer Suppose Boston officials are contemplating an increase
in subway fares in order to increase revenues. If they believe that raising fares would
increase revenues, then they are assuming that the ____ public transportation is price
____
Macroeconomic - answer "To stimulate sustainable domestic spending, especially
among the poor, the Thai government should increase public expenditures int he
provinces to at lease one half of the total by 2025, up from nearly 28% in 2012." The
preceding sentence is an example of a statement about a ____ issue.
6 - answer Barbara's expected catch for the day is as follows: 6 fish on the North side, 5
fish on the South side, or 3 fish on the East side. Everything else held constant,
Barbara's opportunity cost of fishing the East side of the lake is ____ fish.
efficient and attainable - answer On a production possibilities frontier (PPF) graph, a
specific combination of goods being produced at a particular point in time is said to be
____ if it lies on the PPF.
quantity of automobiles demanded to decrease - answer Suppose there is a decrease in
, the number of sellers of automobiles. Everything else held constant, this will cause the...
an inferior; decrease - answer Suppose that apples are ____ good. Suppose further that
national income is increasing. Everything held constant, the equilibrium price of apples
will ____ and the equilibrium quantity transacted will decrease.
Luxury; Inelastic - answer The more a good is perceived as a _____, everything else held
constant, the more price elastic demand will be for it. The shorter the time period is in
which to make a decision to purchase a good, everything else held constant, the more
price ____ demand will be for it.
increased; 4 - answer Suppose Laurens price elasticity of demand for wool is 2. If the
quantity of wool demanded by Lauren has decreased by 8% as the result of a change in
price, then it can be concluded with certainty that the price of wool must have ____ by
_____ percent.
No - answer "Because tuition revenue is an essential element of the University's budget,
it is more important than ever to maximize tuition revenue in any way possible." From an
economic perspective, is the quotation rational?
an increase; increase - answer Suppose Nutella and peanut butter are substitutes in
consumption. ____ in the price of Nutella will cause the demand for peanut butter to ____,
everything else held constant.
increase; increase - answer Suppose at a given point in time, a market is experiencing a
shortage. Over time, everything else held constant, the price in the market will ____ and
the quantity transacted will ____
increase - answer Suppose worker productivity increases in the envelope industry.
Everything else held constant, consumer surplus in the market for envelopes will _____.
increase - answer Suppose worker productivity increases in the envelope industry.
Everything else held constant, producer surplus in the market for envelopes will _____.
increase - answer Suppose worker productivity increases in the envelope industry.
Everything else held constant, economic surplus in the market for envelopes will _____.
true - answer Answer true or false to the following statement. The difference between
the price buyers pay for a good and the price sellers receive from selling it is the amount
of the tax.
60 - answer Suppose the government imposes an excise tax of $10 on a market.
Suppose further that the price elasticity of demand for the good is 1.8 and the price
elasticity of supply for it is 1.2. Everything else held constant, the sellers will bear _____
percent of the burden of the tax.
$4.00 - answer Suppose the government imposes an excise tax of $10 on a market.
And Answers
The price of butter, a complement to bread in consumption, decreased - answer
Suppose that in a small town in July, the price of a loaf of bread was $3.99 and 3700
loaves were transacted. In the same small town in August, the price of a loaf of bread
was $4.39 and 4100 loaves were transacted. Which of the following alone can explain
the change in the bread market from July to August?
Less than or Equal to - answer Suppose Federica, a rational consumer, saw a beautiful
Gucci shoulder bag in dark pink polished leather and her reservation price for it was
$1550. Suppose further that she purchased it. It can be concluded with certainty that
the actual price of the shoulder bag was _____ $1550.
Increase; Decrease - answer Suppose that labor costs increase in the machine tool
industry. Everything else held constant, the equilibrium price of machine tools will ____
and the equilibrium quantity transacted will ____.
Increase; Inelastic - answer If a 3% increase in price results in a 2% _____ in quantity
supplied, it can be concluded with certainty that supply is price ____.
Demand for; Inelastic - answer Suppose Boston officials are contemplating an increase
in subway fares in order to increase revenues. If they believe that raising fares would
increase revenues, then they are assuming that the ____ public transportation is price
____
Macroeconomic - answer "To stimulate sustainable domestic spending, especially
among the poor, the Thai government should increase public expenditures int he
provinces to at lease one half of the total by 2025, up from nearly 28% in 2012." The
preceding sentence is an example of a statement about a ____ issue.
6 - answer Barbara's expected catch for the day is as follows: 6 fish on the North side, 5
fish on the South side, or 3 fish on the East side. Everything else held constant,
Barbara's opportunity cost of fishing the East side of the lake is ____ fish.
efficient and attainable - answer On a production possibilities frontier (PPF) graph, a
specific combination of goods being produced at a particular point in time is said to be
____ if it lies on the PPF.
quantity of automobiles demanded to decrease - answer Suppose there is a decrease in
, the number of sellers of automobiles. Everything else held constant, this will cause the...
an inferior; decrease - answer Suppose that apples are ____ good. Suppose further that
national income is increasing. Everything held constant, the equilibrium price of apples
will ____ and the equilibrium quantity transacted will decrease.
Luxury; Inelastic - answer The more a good is perceived as a _____, everything else held
constant, the more price elastic demand will be for it. The shorter the time period is in
which to make a decision to purchase a good, everything else held constant, the more
price ____ demand will be for it.
increased; 4 - answer Suppose Laurens price elasticity of demand for wool is 2. If the
quantity of wool demanded by Lauren has decreased by 8% as the result of a change in
price, then it can be concluded with certainty that the price of wool must have ____ by
_____ percent.
No - answer "Because tuition revenue is an essential element of the University's budget,
it is more important than ever to maximize tuition revenue in any way possible." From an
economic perspective, is the quotation rational?
an increase; increase - answer Suppose Nutella and peanut butter are substitutes in
consumption. ____ in the price of Nutella will cause the demand for peanut butter to ____,
everything else held constant.
increase; increase - answer Suppose at a given point in time, a market is experiencing a
shortage. Over time, everything else held constant, the price in the market will ____ and
the quantity transacted will ____
increase - answer Suppose worker productivity increases in the envelope industry.
Everything else held constant, consumer surplus in the market for envelopes will _____.
increase - answer Suppose worker productivity increases in the envelope industry.
Everything else held constant, producer surplus in the market for envelopes will _____.
increase - answer Suppose worker productivity increases in the envelope industry.
Everything else held constant, economic surplus in the market for envelopes will _____.
true - answer Answer true or false to the following statement. The difference between
the price buyers pay for a good and the price sellers receive from selling it is the amount
of the tax.
60 - answer Suppose the government imposes an excise tax of $10 on a market.
Suppose further that the price elasticity of demand for the good is 1.8 and the price
elasticity of supply for it is 1.2. Everything else held constant, the sellers will bear _____
percent of the burden of the tax.
$4.00 - answer Suppose the government imposes an excise tax of $10 on a market.
