ECON 300 EXAM 1 QUESTIONS
MERGED WITH CORRECT VERIFIED
SOLUTIONS | ALREADY GRADED A+ |
100% CORRECT | 2026-2027 LATEST
UPDATE!!!
A consumer's willingness to trade one good for another can be
expressed by the consumer's
A. indifference curve.
B. marginal rate of substitution.
C. Both A and B above.
D. None of the above. - ANSWER-C
A country produces cars and books. All of its resources are currently
being employed in the production of these two goods. If this country
increases the production of cars, what will happen with the quantity
produced of books?
A. The quantity of books produced will slightly increase.
,B. The quantity of books produced will substantially increase.
C. The quantity of books produced will not change.
D. The quantity of books produced will decrease. - ANSWER-D
A decrease in the price of a good will lead to:
A. a rightward shift of the supply curve for that good.
B. a leftward shift of the supply curve for that good.
C. a movement down along the supply curve for that good.
D. a movement up along the supply curve for that good. - ANSWER-C
A fair coin is flipped and it comes up tails six times in a row. Someone
bets that the next flip will also be tails, believing the probability of
tails is greater because the last five flips were tails. This behavior,
which is inconsistent with expected utility theory, can be explained by
which of the following theories?
A. Overconfidence
B. Gambler's fallacy
C. Certainty effect
D. Framing - ANSWER-B
A lottery game pays $500 with .001 probability and $0 otherwise. The
variance of the payout is
,A. 15.8.
B. 249.50.
C. 249.75.
D. 499. - ANSWER-C
A market
A. always takes place at a physical location.
B. has no influence on prices.
C. always involves the personal exchange of goods for money.
D. allows interactions between consumers and firms. - ANSWER-D
A specific tax on sellers will
A. shift the demand curve to the left.
B. shift the supply curve to the right.
C. shift the supply curve to the left.
D. shift the demand curve to the right. - ANSWER-C
A vertical demand curve for a particular good implies that consumers
are
A. not interested in that good.
B. irrational.
, C. not sensitive to changes in the price of that good.
D. sensitive to changes in the price of that good. - ANSWER-C
A vertical demand curve result in
A. no change in the supply curve being possible.
B. no change in quantity when the supply curve shifts.
C. no change in quantity when the demand curve shifts.
D. no change in price when the supply curve shifts. - ANSWER-B
According to the Law of Demand, the demand curve for a good will
A. slope downward.
B. slope upward.
C. shift rightward when the price of the good increases.
D. shift leftward when the price of the good increases. - ANSWER-A
According to the Law of Demand, the demand curve for a good will:
A. shift rightward when the price of the good increases.
B. shift leftward when the price of the good increases.
C. slope downward.
D. slope upward. - ANSWER-C
MERGED WITH CORRECT VERIFIED
SOLUTIONS | ALREADY GRADED A+ |
100% CORRECT | 2026-2027 LATEST
UPDATE!!!
A consumer's willingness to trade one good for another can be
expressed by the consumer's
A. indifference curve.
B. marginal rate of substitution.
C. Both A and B above.
D. None of the above. - ANSWER-C
A country produces cars and books. All of its resources are currently
being employed in the production of these two goods. If this country
increases the production of cars, what will happen with the quantity
produced of books?
A. The quantity of books produced will slightly increase.
,B. The quantity of books produced will substantially increase.
C. The quantity of books produced will not change.
D. The quantity of books produced will decrease. - ANSWER-D
A decrease in the price of a good will lead to:
A. a rightward shift of the supply curve for that good.
B. a leftward shift of the supply curve for that good.
C. a movement down along the supply curve for that good.
D. a movement up along the supply curve for that good. - ANSWER-C
A fair coin is flipped and it comes up tails six times in a row. Someone
bets that the next flip will also be tails, believing the probability of
tails is greater because the last five flips were tails. This behavior,
which is inconsistent with expected utility theory, can be explained by
which of the following theories?
A. Overconfidence
B. Gambler's fallacy
C. Certainty effect
D. Framing - ANSWER-B
A lottery game pays $500 with .001 probability and $0 otherwise. The
variance of the payout is
,A. 15.8.
B. 249.50.
C. 249.75.
D. 499. - ANSWER-C
A market
A. always takes place at a physical location.
B. has no influence on prices.
C. always involves the personal exchange of goods for money.
D. allows interactions between consumers and firms. - ANSWER-D
A specific tax on sellers will
A. shift the demand curve to the left.
B. shift the supply curve to the right.
C. shift the supply curve to the left.
D. shift the demand curve to the right. - ANSWER-C
A vertical demand curve for a particular good implies that consumers
are
A. not interested in that good.
B. irrational.
, C. not sensitive to changes in the price of that good.
D. sensitive to changes in the price of that good. - ANSWER-C
A vertical demand curve result in
A. no change in the supply curve being possible.
B. no change in quantity when the supply curve shifts.
C. no change in quantity when the demand curve shifts.
D. no change in price when the supply curve shifts. - ANSWER-B
According to the Law of Demand, the demand curve for a good will
A. slope downward.
B. slope upward.
C. shift rightward when the price of the good increases.
D. shift leftward when the price of the good increases. - ANSWER-A
According to the Law of Demand, the demand curve for a good will:
A. shift rightward when the price of the good increases.
B. shift leftward when the price of the good increases.
C. slope downward.
D. slope upward. - ANSWER-C
