ECON 1100 Final Exam Review Questions and Correct Answers/ Latest Update / Already

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ECON 1100 Final Exam Review Questions
and Correct Answers/ Latest Update /
Already

Graded Buyers Gain Consumer Surplus When the market price is?

Ans: Less than the highest price buyers are willing to pay.


A decrease in the supply of cars, ceteris paribus, leads to a ______ in
the equilibrium price of cars and a ______ in the consumer surplus to
buyers of cars?

Ans: Increase; Decrease


Which of the following is true regarding an effective (binding) price
floor?

Ans: A deadweight loss results from a price change


which of the following is true about a firm in the short run?

Ans: AFC = ATC - AVC


If marginal product is above the average product?


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Ans: Average product is rising


If government wants to minimize the deadweight loss associated with
a tax, it should impose the tax in a market in which:

Ans: Demand and supply are both inelastic


4 Basic Resources

Ans: land, labor, capital, entrepreneurship


Law of Supply

Ans: as price goes up supply goes up; as price goes down
supply goes down


Law of Demand

Ans: as price goes down demand goes up; as price goes up,
demand goes down


Factors of Production

Ans: Land, Labor, Capital, and Entrepreneurial ability




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