Business Economics (BE) 301- Exam
1Questions and Answers
seller surplus - ANSWER-The difference between the minimum price the producer is
willing to accept and the price the
producer actually receives for a product is referred to as:
$65,000 worth of seller surplus and unknown amount of buyer surplus - ANSWER-If
you are willing to sell your lawn mower business for $355,000 and someone offers
you
$420,000 for it, this transaction will generate:
all decisions and actions have a cost associated with them - ANSWER-Economic
reasoning is based on the premise that
Good decision making considers not just obvious and superficial consequences but
also all
changes in incentives and the resultant long term consequences - ANSWER-What is
the one lesson of economics that you learned from the Henry Hazlitt video?
buyer surplus - ANSWER-The difference between the maximum price the consumer
is willing to pay and the price the
consumer actually pays for a product is referred to as:
There is no surplus created - ANSWER-If you are willing to sell your car business for
$500,000 and someone offers you $420,000 for it,
this transaction will generate:
Value is subjective and if you don't own the "stuff" being traded, they will not be
moved
from low value use to high value use consistently - ANSWER-Why is capitalism
necessary for wealth creation?
price ceilings - ANSWER-Price "gouging" laws are an example of:
a) Destroy wealth by creating shortages and excesses
b) provides incentives to conduct business in an illegal black market
c) are a violation of property rights
ALL OF THE ABOVE - ANSWER-Price ceilings and floors:
Minimum wage - ANSWER-An example of price floor is :
Policy makers' inability to correctly measure and apply the elasticity of demand -
ANSWER-What causes the Jevon's paradox?
, $15,000 worth of buyer surplus and $25,000 of seller surplus - ANSWER-A
consumer values a car at $525,000 and a producer values the same car at
$485,000. If the
transaction is completed at $510,000, the transaction will generate:
3% - ANSWER-A consumer values a car at $525,000 and a producer values the
same car at $485,000. If the
transaction is completed at $510,000, what level of tax rate will result in
unconsummated
transaction?
C - ANSWER-Some critics of capitalism argue that:
a) There is too much government intervention in the economy
b) Involuntary trade generates no wealth
c) If one person makes money, someone else must be losing it
d) Voluntary trade ensures gains for both consumers and producers
C - ANSWER-Price gouging
a) Outlaw trade at prices above a certain price level
b) Outlaw trade at prices below a certain price level
c) Is an act of charging a high price to take advantage of shortages created by
natural disasters
d) None of the above
Capitalism is concerned with making the "pie" as large as possible - ANSWER-Let's
imagine the economy as a whole pie. The difference between Capitalism and
Socialism is
that
It creates wealth by letting a person follow his or her own self-interest - ANSWER-
The biggest advantage of capitalism is that
There is no surplus created - ANSWER-If you are willing to sell your car business for
$500,000 and someone offers you $420,000 for it,
this transaction will generate:
C - ANSWER-Most bad business decisions can be fixed using
a) Good incentives
b) Good information
c) Both a and b
d) The right people
Opportunity cost - ANSWER-You and two partners start a company. However, your
partners play no role in running the
company. You devote all our time and talent to run your own business rather than
working for
someone else. You incur an(a):
1Questions and Answers
seller surplus - ANSWER-The difference between the minimum price the producer is
willing to accept and the price the
producer actually receives for a product is referred to as:
$65,000 worth of seller surplus and unknown amount of buyer surplus - ANSWER-If
you are willing to sell your lawn mower business for $355,000 and someone offers
you
$420,000 for it, this transaction will generate:
all decisions and actions have a cost associated with them - ANSWER-Economic
reasoning is based on the premise that
Good decision making considers not just obvious and superficial consequences but
also all
changes in incentives and the resultant long term consequences - ANSWER-What is
the one lesson of economics that you learned from the Henry Hazlitt video?
buyer surplus - ANSWER-The difference between the maximum price the consumer
is willing to pay and the price the
consumer actually pays for a product is referred to as:
There is no surplus created - ANSWER-If you are willing to sell your car business for
$500,000 and someone offers you $420,000 for it,
this transaction will generate:
Value is subjective and if you don't own the "stuff" being traded, they will not be
moved
from low value use to high value use consistently - ANSWER-Why is capitalism
necessary for wealth creation?
price ceilings - ANSWER-Price "gouging" laws are an example of:
a) Destroy wealth by creating shortages and excesses
b) provides incentives to conduct business in an illegal black market
c) are a violation of property rights
ALL OF THE ABOVE - ANSWER-Price ceilings and floors:
Minimum wage - ANSWER-An example of price floor is :
Policy makers' inability to correctly measure and apply the elasticity of demand -
ANSWER-What causes the Jevon's paradox?
, $15,000 worth of buyer surplus and $25,000 of seller surplus - ANSWER-A
consumer values a car at $525,000 and a producer values the same car at
$485,000. If the
transaction is completed at $510,000, the transaction will generate:
3% - ANSWER-A consumer values a car at $525,000 and a producer values the
same car at $485,000. If the
transaction is completed at $510,000, what level of tax rate will result in
unconsummated
transaction?
C - ANSWER-Some critics of capitalism argue that:
a) There is too much government intervention in the economy
b) Involuntary trade generates no wealth
c) If one person makes money, someone else must be losing it
d) Voluntary trade ensures gains for both consumers and producers
C - ANSWER-Price gouging
a) Outlaw trade at prices above a certain price level
b) Outlaw trade at prices below a certain price level
c) Is an act of charging a high price to take advantage of shortages created by
natural disasters
d) None of the above
Capitalism is concerned with making the "pie" as large as possible - ANSWER-Let's
imagine the economy as a whole pie. The difference between Capitalism and
Socialism is
that
It creates wealth by letting a person follow his or her own self-interest - ANSWER-
The biggest advantage of capitalism is that
There is no surplus created - ANSWER-If you are willing to sell your car business for
$500,000 and someone offers you $420,000 for it,
this transaction will generate:
C - ANSWER-Most bad business decisions can be fixed using
a) Good incentives
b) Good information
c) Both a and b
d) The right people
Opportunity cost - ANSWER-You and two partners start a company. However, your
partners play no role in running the
company. You devote all our time and talent to run your own business rather than
working for
someone else. You incur an(a):
