UConn Econ 1202 Midterm
Examination and Already Passed
Answers.
People have limited resources. - Answer scarcity
Everything you do requires giving up something (time, money, etc.). - Answer Tradeoffs
An educational software company wants to expand the number of economics questions that it
offers and is considering hiring another economist. The company compares how much adding
another worker will improve the product to the additional cost. - Answer marginal decisions
Ava finds that there is not enough time after work to have dinner, exercise, and watch TV, and
she must make choices about how to use her limited time. - Answer resource scarcity
On Black Friday, there are huge sales for electronics at many retail stores. David must decide
between buying a camera at one store or a flat screen TV at another store, and buying one
means losing out on the ability to purchase the other. - Answer opportunity cost
Macroeconomics, as a subject of study, began with Adam Smith's An Inquiry into the Nature and
Causes of the Wealth Nations - Answer False
As a general matter, most economists uniformly agree as to the best or optimal macroeconomic
policy. - Answer False
Low unemployment - Answer primary macroeconomic policy goal
Eliminating political conflict - Answer not a primary macroeconomic policy goal
To set the optimal price for a pound of peaches - Answer not a primary macroeconomic policy
goal
To calculate how much urban residents are willing to pay to protect biodiversity - Answer not a
primary macroeconomic policy goal
, A tax on tires increases the price of tires paid by car owners. - Answer microeconomics
As a result of a severe recession, the total output, or gross domestic product, of a nation falls by
4 percent. - Answer macroeconomics
Increased consumer spending causes the national unemployment rate to fall. - Answer
macroeconomics
Increased consumer spending causes the rate of inflation to rise. - Answer macroeconomics
Optimism about future car sales leads General Motors to hire more auto workers. - Answer
microeconomics
Robotic technology reduces the demand for auto workers. - Answer microeconomics
The owner of a snow cone trailer realizes that the demand for snow cones is low during the
winter, and closes shop until the temperature warms back up near summertime.
market efficiency - Answer
The local river has so much pollution that three-eyed fish are forming. The government
responds by regulating the amount of chemicals that can be dumped into the river. - Answer
government intervention
t a high-end restaurant, the restaurant owner has one chef at a meat station, one chef at a
vegetable station, and one chef, who has an artistic eye, plate the food she is given. The result is
increased service speed, and the kitchen is able to serve more customers in an evening. -
Answer specialization
During the summer, a bumper crop of oranges in Florida causes a surplus in the supply of
oranges nationwide. As a result, prices fall to compensate for the surplus and consumers enjoy
the fruits of the farmers' labor. - Answer equilibrium
During the summer, the largest computer game retailer has a massive sale. As prices for
computer games fall, consumers purchase more games, ceteris paribus.
What does the term ceteris paribus mean in this context? - Answer holding all else equal
Examination and Already Passed
Answers.
People have limited resources. - Answer scarcity
Everything you do requires giving up something (time, money, etc.). - Answer Tradeoffs
An educational software company wants to expand the number of economics questions that it
offers and is considering hiring another economist. The company compares how much adding
another worker will improve the product to the additional cost. - Answer marginal decisions
Ava finds that there is not enough time after work to have dinner, exercise, and watch TV, and
she must make choices about how to use her limited time. - Answer resource scarcity
On Black Friday, there are huge sales for electronics at many retail stores. David must decide
between buying a camera at one store or a flat screen TV at another store, and buying one
means losing out on the ability to purchase the other. - Answer opportunity cost
Macroeconomics, as a subject of study, began with Adam Smith's An Inquiry into the Nature and
Causes of the Wealth Nations - Answer False
As a general matter, most economists uniformly agree as to the best or optimal macroeconomic
policy. - Answer False
Low unemployment - Answer primary macroeconomic policy goal
Eliminating political conflict - Answer not a primary macroeconomic policy goal
To set the optimal price for a pound of peaches - Answer not a primary macroeconomic policy
goal
To calculate how much urban residents are willing to pay to protect biodiversity - Answer not a
primary macroeconomic policy goal
, A tax on tires increases the price of tires paid by car owners. - Answer microeconomics
As a result of a severe recession, the total output, or gross domestic product, of a nation falls by
4 percent. - Answer macroeconomics
Increased consumer spending causes the national unemployment rate to fall. - Answer
macroeconomics
Increased consumer spending causes the rate of inflation to rise. - Answer macroeconomics
Optimism about future car sales leads General Motors to hire more auto workers. - Answer
microeconomics
Robotic technology reduces the demand for auto workers. - Answer microeconomics
The owner of a snow cone trailer realizes that the demand for snow cones is low during the
winter, and closes shop until the temperature warms back up near summertime.
market efficiency - Answer
The local river has so much pollution that three-eyed fish are forming. The government
responds by regulating the amount of chemicals that can be dumped into the river. - Answer
government intervention
t a high-end restaurant, the restaurant owner has one chef at a meat station, one chef at a
vegetable station, and one chef, who has an artistic eye, plate the food she is given. The result is
increased service speed, and the kitchen is able to serve more customers in an evening. -
Answer specialization
During the summer, a bumper crop of oranges in Florida causes a surplus in the supply of
oranges nationwide. As a result, prices fall to compensate for the surplus and consumers enjoy
the fruits of the farmers' labor. - Answer equilibrium
During the summer, the largest computer game retailer has a massive sale. As prices for
computer games fall, consumers purchase more games, ceteris paribus.
What does the term ceteris paribus mean in this context? - Answer holding all else equal
