ECON 2030 EXAM STUDY
QUESTIONS AND 100% CORRECT
ANSWERS!!
The _____ the time period under consideration, everything else held constant, the more
price inelastic demand will be for a good. The larger the portion of a consumer's budget a
good makes up, everything else held constant, the more price_____ demand will be for the
good.
A. longer; elastic
B. shorter; elastic
C. shorter; inelastic
D. longer; inelastic
B
Suppose a binding price ceiling is imposed on the market for horseradish. At the ceiling
price, everything else held constant, the quantity of horseradish transacted is______ the
market equilibrium quantity.
A. greater than or equal to
B. less than or equal to
C. less than
,D. equal to
E. greater than
C
Suppose Lydia, a very rational German major, is considering going to the movies tonight
to see I'm Juli, tickets cost $5 each, but are nonrefundable/exchangeable. To do this, she
would have to cancel her weekly German tutoring session for which she would have been
paid $40. If Lydia has already purchased the movie ticket, and estimates the pleasure from
seeing the film is $45, then what will see decide to do tonight?
A. Definitely see the movie.
B. Definitely hold her tutoring session.
C. Do either, as she will be indifferent between the two choices.
C
If a 9 percent ____ in price results in a 7 percent increase in the quantity supplied, it can be
concluded with certainty that the supply is price _____.
A. decrease; inelastic
B. increase; inelastic
C. decrease; elastic
D. increase; elastic
B
Suppose you observe a market in which, at a given point in time, the quantity consumers
are willing and able to purchase is ______ the quantity producers are willing and able to
sell. Thus we say that there is a shortage of the good and over time, everything else
held constant, the price in the market will______.
A. less than; decrease
B. greater than; decrease
, C. greater than; increase
D. less than; increase
C
Suppose a binding price floor is imposed on a market that was in equilibrium when
the floor was imposed. It can be concluded with certainty that the floor will ____ the
consumers of the good, everything else held constant.
A. have an ambiguous effect on
B. have no effect on
C. benefit
D. hurt
D
Suppose an increase in the price of good X causes the demand for god Y to decrease,
everything else held constant. Therefore the goods are ______ and the cross-price elasticity
of them is _____.
A. complements; negative
B. substitutes; postive
C. complements; positive
D. substitutes; negative
A
In August 2014 the unemployment rate in the US fell to 6.1 percent from 6.2 percent
in July 2014 is an example of a statement about a ________ issue.
A. microeconomic
B. macroeconomic
B
QUESTIONS AND 100% CORRECT
ANSWERS!!
The _____ the time period under consideration, everything else held constant, the more
price inelastic demand will be for a good. The larger the portion of a consumer's budget a
good makes up, everything else held constant, the more price_____ demand will be for the
good.
A. longer; elastic
B. shorter; elastic
C. shorter; inelastic
D. longer; inelastic
B
Suppose a binding price ceiling is imposed on the market for horseradish. At the ceiling
price, everything else held constant, the quantity of horseradish transacted is______ the
market equilibrium quantity.
A. greater than or equal to
B. less than or equal to
C. less than
,D. equal to
E. greater than
C
Suppose Lydia, a very rational German major, is considering going to the movies tonight
to see I'm Juli, tickets cost $5 each, but are nonrefundable/exchangeable. To do this, she
would have to cancel her weekly German tutoring session for which she would have been
paid $40. If Lydia has already purchased the movie ticket, and estimates the pleasure from
seeing the film is $45, then what will see decide to do tonight?
A. Definitely see the movie.
B. Definitely hold her tutoring session.
C. Do either, as she will be indifferent between the two choices.
C
If a 9 percent ____ in price results in a 7 percent increase in the quantity supplied, it can be
concluded with certainty that the supply is price _____.
A. decrease; inelastic
B. increase; inelastic
C. decrease; elastic
D. increase; elastic
B
Suppose you observe a market in which, at a given point in time, the quantity consumers
are willing and able to purchase is ______ the quantity producers are willing and able to
sell. Thus we say that there is a shortage of the good and over time, everything else
held constant, the price in the market will______.
A. less than; decrease
B. greater than; decrease
, C. greater than; increase
D. less than; increase
C
Suppose a binding price floor is imposed on a market that was in equilibrium when
the floor was imposed. It can be concluded with certainty that the floor will ____ the
consumers of the good, everything else held constant.
A. have an ambiguous effect on
B. have no effect on
C. benefit
D. hurt
D
Suppose an increase in the price of good X causes the demand for god Y to decrease,
everything else held constant. Therefore the goods are ______ and the cross-price elasticity
of them is _____.
A. complements; negative
B. substitutes; postive
C. complements; positive
D. substitutes; negative
A
In August 2014 the unemployment rate in the US fell to 6.1 percent from 6.2 percent
in July 2014 is an example of a statement about a ________ issue.
A. microeconomic
B. macroeconomic
B
