ECN 221 Micro Final Questions with
complete solution 2025
How would a change in the meeting time of the introductory economics
course, from 11:00 AM to 7:30 AM, affect a student's decision to attend the
lectures? - correct answer The change in the meeting time would reduce the
incentive of a student to attend the class.
Consider the following statement:
"The government should provide such goods as health care, education, and
highways because it can provide them for free."
Which of the following apply to this statement? Check all that apply. - correct
answer -Governments face trade-offs when providing these services.
-This is a false statement because governments collect tax revenues to pay
for the provision of these services.
Which of the following is true about a market economy? - correct answer
Resources are rationed through the price mechanism.
Maria is giving a speech and says the following: "The economic way of
thinking stresses that good intentions lead to sound policy." How would you
evaluate this statement? Check all that apply. - correct answer -The
statement is false because a policy motivated by good intentions may have
unintended negative consequences.
-The statement is false because sound economic reasoning is required to
anticipate unintended consequences of policies that are motivated by good
intentions.
,True or False: Marginal analysis involves comparing the additional or extra
benefit derived from consuming an additional unit of a product or service to
the additional cost of consuming that unit of the product or service. - correct
answer True
True or False: Economizing behavior involves choosing the option that brings
the greatest satisfaction at the least cost. - correct answer True
Suppose that Francis makes the following statement:
"Positive economics cannot tell us which agricultural policy is better, so it is
useless to policymakers."
Which of the following best describes this statement? - correct answer The
statement is false because positive economics involves verifiable statements
that can be assessed by data, so positive economics can be used to
determine which agricultural policy is more effective in achieving a given goal.
A policymaker who assumes that the effect that a policy has on one person
will be the same effect that the policy will have on all people in the economy is
- correct answer committing the fallacy of composition
Which of the following are positive (rather than normative) statements? Check
all that apply. - correct answer -There are two policies designed to reduce
alcohol consumption. Policy A leads to a larger reduction in the consumption
of alcohol than policy B.
-An increase in the price of beer will lead to people drinking less beer.
Suppose that the government raises the permissible minimum wage to $15
per hour.
Which of the following describes a secondary effect that will likely result from
this action? - correct answer The rise in the minimum wage may lead to an
increase in the level of poverty in the country as fewer workers are hired by
businesses that cannot afford the higher wages.
, Suppose that Kyoko, who is a policymaker in the state of Argomix, believes
that air and water pollution should be reduced to zero.
Which of the following is true? - correct answer While it is admirable for a
policymaker to want to reduce air and water pollution to zero, there will likely
be unwanted secondary effects from this policy.
Jones trades a used car to Smith for $5,000.
Evaluate the following statement:
True or False: Since nothing new is created, there is no way the transaction
can improve the welfare of people. - correct answer False
Which of the following accurately defines transaction costs? - correct answer
The time, effort, and other resources needed to seek out, negotiate, and
complete an exchange.
True or False: People in business get ahead by meeting the needs of their
consumers. As a result, both businesses and customers benefit from
voluntary exchange. - correct answer True
Would people be better off if there were no middlemen? - correct answer No,
middlemen perform a productive function by reducing transaction costs.
If you have private-ownership rights to something, what does this mean? -
correct answer It means that you can transfer, sell, or mortgage the good.
True or False: Private owners can gain by employing their resources in ways
that are beneficial to others, and they bear the opportunity cost of ignoring the
wishes of others. - correct answer True
complete solution 2025
How would a change in the meeting time of the introductory economics
course, from 11:00 AM to 7:30 AM, affect a student's decision to attend the
lectures? - correct answer The change in the meeting time would reduce the
incentive of a student to attend the class.
Consider the following statement:
"The government should provide such goods as health care, education, and
highways because it can provide them for free."
Which of the following apply to this statement? Check all that apply. - correct
answer -Governments face trade-offs when providing these services.
-This is a false statement because governments collect tax revenues to pay
for the provision of these services.
Which of the following is true about a market economy? - correct answer
Resources are rationed through the price mechanism.
Maria is giving a speech and says the following: "The economic way of
thinking stresses that good intentions lead to sound policy." How would you
evaluate this statement? Check all that apply. - correct answer -The
statement is false because a policy motivated by good intentions may have
unintended negative consequences.
-The statement is false because sound economic reasoning is required to
anticipate unintended consequences of policies that are motivated by good
intentions.
,True or False: Marginal analysis involves comparing the additional or extra
benefit derived from consuming an additional unit of a product or service to
the additional cost of consuming that unit of the product or service. - correct
answer True
True or False: Economizing behavior involves choosing the option that brings
the greatest satisfaction at the least cost. - correct answer True
Suppose that Francis makes the following statement:
"Positive economics cannot tell us which agricultural policy is better, so it is
useless to policymakers."
Which of the following best describes this statement? - correct answer The
statement is false because positive economics involves verifiable statements
that can be assessed by data, so positive economics can be used to
determine which agricultural policy is more effective in achieving a given goal.
A policymaker who assumes that the effect that a policy has on one person
will be the same effect that the policy will have on all people in the economy is
- correct answer committing the fallacy of composition
Which of the following are positive (rather than normative) statements? Check
all that apply. - correct answer -There are two policies designed to reduce
alcohol consumption. Policy A leads to a larger reduction in the consumption
of alcohol than policy B.
-An increase in the price of beer will lead to people drinking less beer.
Suppose that the government raises the permissible minimum wage to $15
per hour.
Which of the following describes a secondary effect that will likely result from
this action? - correct answer The rise in the minimum wage may lead to an
increase in the level of poverty in the country as fewer workers are hired by
businesses that cannot afford the higher wages.
, Suppose that Kyoko, who is a policymaker in the state of Argomix, believes
that air and water pollution should be reduced to zero.
Which of the following is true? - correct answer While it is admirable for a
policymaker to want to reduce air and water pollution to zero, there will likely
be unwanted secondary effects from this policy.
Jones trades a used car to Smith for $5,000.
Evaluate the following statement:
True or False: Since nothing new is created, there is no way the transaction
can improve the welfare of people. - correct answer False
Which of the following accurately defines transaction costs? - correct answer
The time, effort, and other resources needed to seek out, negotiate, and
complete an exchange.
True or False: People in business get ahead by meeting the needs of their
consumers. As a result, both businesses and customers benefit from
voluntary exchange. - correct answer True
Would people be better off if there were no middlemen? - correct answer No,
middlemen perform a productive function by reducing transaction costs.
If you have private-ownership rights to something, what does this mean? -
correct answer It means that you can transfer, sell, or mortgage the good.
True or False: Private owners can gain by employing their resources in ways
that are beneficial to others, and they bear the opportunity cost of ignoring the
wishes of others. - correct answer True
