Econ 212 Exam 1 Multiple Choice || 100% CORRECT
ANSWERS!!
Surpluses always occur correct answers at prices above the equilibrium price
What happens to the equilibrium price and quantity when demand decreases and at the same
time supply increases, but the relative size of the shifts are not known? correct answers The
equilibrium price falls, and the change in the equilibrium quantity is ambiguous.
Consider the decision to read your economics textbook. Which of the four core principles of
economicsapplies to the notion that reading this textbook will help you to establish a solid
foundation of understandingeconomics, which will be beneficial for future courses? correct
answers Interdependence principle
On a hot sweltering day, you feel thirsty and buy an ice-cold soft drink, which you gulp
down. Whether youbuy the second drink or not, will depend on correct answers the marginal
benefit from the second soft drink and if it will outweigh the price of the soft drink.
The cost-benefit principle states that _____ are the incentives that shape decisions. correct
answers costs and benefits
The Rational Rule for Buyers correct answers compares the benefit of buying an additional
unit of the item to the cost of that item.
An equilibrium price is: correct answers determined by the intersection of the demand and
supply curves.
Nerida Kyle can either commute to work using a bus or purchase a new car. The bus fare
each way is $2.Nerida works five days a week for 50 weeks a year. Based solely on the
benefit of avoiding the cost of herbus tickets, Nerida should purchase a car if the cost of the
car is _____ than _____ per week. correct answers less; $20
Shifts in supply correct answers lead to price and quantity to move in opposite directions.
Kevin Williamson goes to a local coffee shop and orders a medium-sized latte. His
willingness to pay for thatlatte is $6. The price of the latte is $2. The cost to the coffee shop
to produce the latte is $1. How mucheconomic surplus does the coffee shop receive when
Kevin purchases the latte? correct answers $1
It is a beautiful afternoon, and you are considering taking a leisurely stroll through the park.
Your alternativesto walking are streaming a movie that you value at $5, taking a nap that you
value at $7, or reading a newbook that you value at $12. What is the opportunity cost to you
of taking the stroll through the park? correct answers $12
The price of coffee at a local coffee shop is $2.50. Cheryl is willing to pay $8 for her first cup
of coffee eachday. The marginal benefit to her of each additional cup of coffee falls by $2.
How many cups of coffee should Cheryl purchase? correct answers Three
Fast food is a good example of correct answers an inferior good.
ANSWERS!!
Surpluses always occur correct answers at prices above the equilibrium price
What happens to the equilibrium price and quantity when demand decreases and at the same
time supply increases, but the relative size of the shifts are not known? correct answers The
equilibrium price falls, and the change in the equilibrium quantity is ambiguous.
Consider the decision to read your economics textbook. Which of the four core principles of
economicsapplies to the notion that reading this textbook will help you to establish a solid
foundation of understandingeconomics, which will be beneficial for future courses? correct
answers Interdependence principle
On a hot sweltering day, you feel thirsty and buy an ice-cold soft drink, which you gulp
down. Whether youbuy the second drink or not, will depend on correct answers the marginal
benefit from the second soft drink and if it will outweigh the price of the soft drink.
The cost-benefit principle states that _____ are the incentives that shape decisions. correct
answers costs and benefits
The Rational Rule for Buyers correct answers compares the benefit of buying an additional
unit of the item to the cost of that item.
An equilibrium price is: correct answers determined by the intersection of the demand and
supply curves.
Nerida Kyle can either commute to work using a bus or purchase a new car. The bus fare
each way is $2.Nerida works five days a week for 50 weeks a year. Based solely on the
benefit of avoiding the cost of herbus tickets, Nerida should purchase a car if the cost of the
car is _____ than _____ per week. correct answers less; $20
Shifts in supply correct answers lead to price and quantity to move in opposite directions.
Kevin Williamson goes to a local coffee shop and orders a medium-sized latte. His
willingness to pay for thatlatte is $6. The price of the latte is $2. The cost to the coffee shop
to produce the latte is $1. How mucheconomic surplus does the coffee shop receive when
Kevin purchases the latte? correct answers $1
It is a beautiful afternoon, and you are considering taking a leisurely stroll through the park.
Your alternativesto walking are streaming a movie that you value at $5, taking a nap that you
value at $7, or reading a newbook that you value at $12. What is the opportunity cost to you
of taking the stroll through the park? correct answers $12
The price of coffee at a local coffee shop is $2.50. Cheryl is willing to pay $8 for her first cup
of coffee eachday. The marginal benefit to her of each additional cup of coffee falls by $2.
How many cups of coffee should Cheryl purchase? correct answers Three
Fast food is a good example of correct answers an inferior good.
