Econ 101 Final Exam | latest full testbank with complete solution

Econ 101 Final Exam | latest full testbank with complete solution In a competitive market, excess demand for a good exists whenever....? a. resources are scarce b. the current price is below the equilibrium price c. the current price is above the equilibrium price d. sellers are subject to the constraints imposed by input prices and technology e. the quantity supplied at the current price exceeds the quantity demanded - b. the current price is below the equilibrium price Which of the following is an example of a stock variable? a. The amount of cereal a person buys each week b. The amount of cereal a child consumes each month c. The amount of cereal produced each day d. The amount of cereal in a person's pantry e. None of these are stock variables - d. The amount of cereal in a person's pantry Economics is...? a. exclusively the study of business firms b. applicable only when scarcity is not a problem c. exclusively the study of the markets for stocks and bonds d. fundamentally the same as sociology e. the study of choice under conditions of scarcity - e. the study of choice under conditions of scarcity Complementary goods... a. do not adhere to the law of demand b. are usually used in conjunction with each other c. are usually used in place of one another d. are goods whose demand rises as incomes rise e. are goods whose demand falls as wealth falls - b. are usually used in conjunction with each other If Greg uses a special glue to make model planes that he sells and the price of his model planes increases, then one would expect that the equilibrium price of the special glue would _______ and the equilibrium quantity would _________. a. increase; increase b. decrease; decrease c. increase; decrease d. decrease; increase e. increase; indeterminant - a. increase; increase Positive economics deals with... a. opinions that affirm economists' theories b. statements of fact c. practical ways of improving people's self-esteem by making money d. statements about the way things ought to be e. theories about improving people's self-esteem - b. statements of fact Microeconomics.... a. is purely theoretical and has little value in explaining real-world phenomena b. focuses on what is happening in the economy as a whole c. addresses scarcity from a global perspective d. examines how individuals, households, and firms make economic decisions e. answers the fundamental economic questions of how, when, where, and why - d. examines how individuals, households, and firms make economic decisions The demand curve for dolls shows the quantity of dolls demanded a. at each level of income b. at the equilibrium price for dolls c. by U.S. consumers d. by suppliers of those dolls e. at each possible price of dolls - e. at each possible price of dolls According to the law of demand, a. there is a positive relationship between quantity demanded and price b. as the price rises, demand will shift to the right c. as the price rises, consumers will continue to purchase the same quantity of the good d. as the price rises, demand will shift to the left e. there is a negative relationship between quantity demanded and price - e. there is a negative relationship between quantity demanded and price Even though households may have unlimited wants, they have to allocate their spending carefully because they a. do not want their credit card bills to be too high b. worry about their taxes c. have limited intelligence d. have limited incomes e. basically want to become wealthy - d. have limited incomes An entrepreneur is best described as a. someone that is hired to work in a firm b. someone who creates human capital c. someone with the ability to combine other resources in a productive enterprise d. anyone who owns productive enterprise e. anyone who produces long-lived physical capital - c. someone with the ability to combine other resources in a productive enterprise The overall performance of the economic system as a whole is the focus of a. international finance b. labor economics c. microeconomics d. macroeconomics e. public economics - d. macroeconomics Microeconomics analyzes individual parts of the economy rather than broad economic aggregates. a. True b. False - a. True Suppose that the Council of Economic Advisers tells the President that "the unemployment rate is 4 percent." The President responds, "That rate is still too high." The President's statement is a. a normative statement b. a positive statement c. empirically verifiable by checking economic data d. an indisputable statistical fact e. an incorrect positive statement - a. a normative statement Individuals face opportunity costs because a. the minimum wage is too low b. technology is improving too