Eco 1 Final Exam Prep Graded A+ (Verified)
A decrease in the real interest rate will - ANSWER-most likely increase consumer's
purchases of durable goods.
A firm has successfully adopted a positive technological change when - ANSWER-it can
produce more output using the same inputs.
A monopolistically competitive industry that earns economic profits in the short run will -
ANSWER-experience the entry of new rival firms into the industry in the long run.
A numerical limit imposed by a government of the quantity of a good that can be
imported into the country is called a - ANSWER-quota.
A patent is an example of - ANSWER-a government-imposed barrier to entry.
A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000.
The price of each good is $10. Calculate the firm's short-run profit or loss. - ANSWER-
loss of $6,000
A perfectly competitive industry achieves allocative efficiency because - ANSWER-
goods and services are produced up to the point where the last unit provides a marginal
benefit to consumers equal to the marginal cost of producing it.
A regressive tax is a tax for which people with lower incomes - ANSWER-pay a higher
percentage of their incomes in tax than do people with higher incomes.
A student who just graduated from college but has not found a job would most likely be -
ANSWER-frictionally unemployed.
According to the article discussed during the lecture regarding unemployment -
ANSWER-A turnover in a call center is a great proxy for the business cycle because the
jobs are so miserable that people quit as soon as they see opportunities elsewhere.
According to the figure above, at what point is aggregate expenditure greater than
GDP? - ANSWER-J
According to the law of one price - ANSWER-if transaction costs are zero, identical
goods should sell for the same price everywhere.
As a result of the tariff, domestic producers increase their quantity supplied by -
ANSWER-6 million pounds of rice.
, At the end of the day you need to brush our teeth and: (The given question) - ANSWER-
Close the curtains so the sun does not shine in your face in the morning. (The given
question)
Based on the information above, what is the level of public saving? - ANSWER-negative
$1 trillion (a deficit of $1 trillion)
Based on the table above, which country has a higher standard of living and why? -
ANSWER-Ireland has a higher standard of living because their real GDP per capita is
higher.
Both buyers and sellers are price takers in a perfectly competitive market because -
ANSWER-each buyer and seller is too small relative to others to independently affect
the market price.
Carlos Vanya grows tomatoes and strawberries on his land. His land is equally suited
for growing either fruit. Which graphs in Figure 1 represents his production possibilities
frontier? - ANSWER-Graph A
Chance's Shoppe normally employs 4 workers. When the Shoppe hired a 5th worker
the Shoppe's total output decreased. Therefore - ANSWER-the marginal product of the
5th worker is negative.
Decreases in the price level will - ANSWER-raise consumption because goods and
services are more affordable.
Economics promotes which of the following as the way to make the best decision? -
ANSWER-Continue an enjoyable activity until it is no longer enjoyable.
Economies of scale can lead to an oligopolistic market structure because - ANSWER-if
larger firms have lower costs, new small entrants will not be able to produce at the low
costs achieved by the big established firms.
Economists believe the most persuasive argument for protectionism is to protect infant
industries. But the argument has a drawback. What is this drawback? - ANSWER-
Protection lessens the need for firms to become productive enough to compete with
foreign firms; this often results in infant industries never "growing up".
GDP is not a perfect measure of well-being because - ANSWER-GDP is not adjusted
for pollution.
Goods with upward sloping demand curves are referred to as - ANSWER-Giffen goods.
Governments grant patents to encourage - ANSWER-research and development on
new products.
A decrease in the real interest rate will - ANSWER-most likely increase consumer's
purchases of durable goods.
A firm has successfully adopted a positive technological change when - ANSWER-it can
produce more output using the same inputs.
A monopolistically competitive industry that earns economic profits in the short run will -
ANSWER-experience the entry of new rival firms into the industry in the long run.
A numerical limit imposed by a government of the quantity of a good that can be
imported into the country is called a - ANSWER-quota.
A patent is an example of - ANSWER-a government-imposed barrier to entry.
A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000.
The price of each good is $10. Calculate the firm's short-run profit or loss. - ANSWER-
loss of $6,000
A perfectly competitive industry achieves allocative efficiency because - ANSWER-
goods and services are produced up to the point where the last unit provides a marginal
benefit to consumers equal to the marginal cost of producing it.
A regressive tax is a tax for which people with lower incomes - ANSWER-pay a higher
percentage of their incomes in tax than do people with higher incomes.
A student who just graduated from college but has not found a job would most likely be -
ANSWER-frictionally unemployed.
According to the article discussed during the lecture regarding unemployment -
ANSWER-A turnover in a call center is a great proxy for the business cycle because the
jobs are so miserable that people quit as soon as they see opportunities elsewhere.
According to the figure above, at what point is aggregate expenditure greater than
GDP? - ANSWER-J
According to the law of one price - ANSWER-if transaction costs are zero, identical
goods should sell for the same price everywhere.
As a result of the tariff, domestic producers increase their quantity supplied by -
ANSWER-6 million pounds of rice.
, At the end of the day you need to brush our teeth and: (The given question) - ANSWER-
Close the curtains so the sun does not shine in your face in the morning. (The given
question)
Based on the information above, what is the level of public saving? - ANSWER-negative
$1 trillion (a deficit of $1 trillion)
Based on the table above, which country has a higher standard of living and why? -
ANSWER-Ireland has a higher standard of living because their real GDP per capita is
higher.
Both buyers and sellers are price takers in a perfectly competitive market because -
ANSWER-each buyer and seller is too small relative to others to independently affect
the market price.
Carlos Vanya grows tomatoes and strawberries on his land. His land is equally suited
for growing either fruit. Which graphs in Figure 1 represents his production possibilities
frontier? - ANSWER-Graph A
Chance's Shoppe normally employs 4 workers. When the Shoppe hired a 5th worker
the Shoppe's total output decreased. Therefore - ANSWER-the marginal product of the
5th worker is negative.
Decreases in the price level will - ANSWER-raise consumption because goods and
services are more affordable.
Economics promotes which of the following as the way to make the best decision? -
ANSWER-Continue an enjoyable activity until it is no longer enjoyable.
Economies of scale can lead to an oligopolistic market structure because - ANSWER-if
larger firms have lower costs, new small entrants will not be able to produce at the low
costs achieved by the big established firms.
Economists believe the most persuasive argument for protectionism is to protect infant
industries. But the argument has a drawback. What is this drawback? - ANSWER-
Protection lessens the need for firms to become productive enough to compete with
foreign firms; this often results in infant industries never "growing up".
GDP is not a perfect measure of well-being because - ANSWER-GDP is not adjusted
for pollution.
Goods with upward sloping demand curves are referred to as - ANSWER-Giffen goods.
Governments grant patents to encourage - ANSWER-research and development on
new products.
