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This document contains questions and answers for all Sapling homework and news analysis assignments. All answers are listed in red and have been double checked for accuracy. This document could also be used for studying for the midterm or final exam. *This is a fall semester course. (Title: Principles to Macroeconomics, ECON 2105). If you have any questions or suggestions, please feel free to message me.*
ECON 6100: Chapter 13 and 14 Direct and Indirect Price Discrimination.1. Which of the following is an example of price discrimination? 
 	a. 	Seniors paying a lower price for tickets at movie theatres 
 
 	b. 	Students paying discounted rates on travel 
 
 	c. 	Tourists paying higher prices on local attractions than locals 
 
 	d. 	All of the above 
 
ANSWER: 	d 
TOPICS: 	Section 1: Introduction 
 
 
2. The practice of buying a firm’s good in one market at a low price and selling it in anot...
ECON 6100 Chapter 12: More Realistic and Complex Pricing.1. Acquiring a firm that sells a substitute good would make the demand curve for your original product 
 	a. 	More inelastic 
 
 	b. 	More elastic 
 
 	c. 	Unchanged 
 
 	d. 	None of the above 
ANSWER: 	a 
TOPICS: 	Section 1: Pricing Commonly Owned Products 
 
 
2. You own two different energy drink brands: “Blue Cow” and “600 minute energy.” If you reduce the price on “Blue Cow”, 
 	a. 	Sales of “Blue Cow” would increase...
ECON 6100 Chapter 11: Foreign Exchange Trade and Bubbles.1. When interest rates go up, people are 
 	a. 	More likely to borrow 
 
 	b. 	Less likely to borrow 
 
 	c. 	Does not affect a person’s consumption 
 	d. 	None of the above 
 
ANSWER: 	b 
TOPICS: 	Section 1: The Market for Foreign Exchange 
 
 
2. When interest rates fall, people are 
 	a. 	More likely to borrow 
 
 	b. 	Less likely to borrow 
 
 	c. 	Not likely to change borrowing patterns 
 	d. 	None of the above 
 
ANSWER: 	a 
TOP...
ECON 6100 Chapter 8: Understanding Markets and Industry Changes.1. Demand and supply analysis is particularly important if 
 	a. 	the success of your firm is closely linked to the profitability of your primary industry 
 	b. 	the success of your firm is independent of the profitability of your primary industry 
 	c. 	the success of your firm is unlikely 
 
 	d. 	demand and supply analysis is unimportant 
 
ANSWER: 	a 
TOPICS: 	Section 1: Which Industry or Market 
 
 
2. If movie theatres decid...
ECON 6100 Chapter 6: Simple Pricing.1. The first law of demand states that 
 	a. 	the quantity demanded increases as price falls 
 
 	b. 	the quantity demanded decreases as price falls 
 
 	c. 	the quantity demanded increases as price increases 
 	d. 	none of the above 
 
ANSWER: 	a 
TOPICS: 	Section 1: Background: Consumer Values and Demand Curves 
 
 
2. Its lunch time, you are hungry and would like to have some pizza. By the law of diminishing marginal value, 
 	a. 	you would pay more for y...
ECON 6100 Chapter 2: The One Lesson of Business.1. One lesson of business: 
 	a. 	is tracing the consequences of a policy. 
 
 	b. 	promoting a policy change to eradicate inefficiencies. 
 
 	c. 	moving assets from lower to higher value uses, thereby creating wealth. 
 	d. 	None of the above 
 
ANSWER: 	c 
TOPICS: 	Section 1: Capitalism and Wealth 
 
 
2. An individual’s value for a good or service is the 
 	a. 	The amount of money he or she used to pay for a good 
 	b. 	The amount of money ...
ECON 6100 Chapter 9: Market Structure and Long Run Equilibrium.1. All of these are characteristics of a competitive industry, except: 
 	a. 	Many substitutes 
 
 	b. 	No barriers to entry 
 
 	c. 	Homogenous product 
 
 	d. 	Little or no information on rivals’ products 
ANSWER: 	d 
TOPICS: 	Section 1: Competitive Industries 
 
 
2. Which of the following markets are closest to perfectly competitive 
 	a. 	The market for smart phones 
 
 	b. 	The market for generic pharmaceuticals 
 	c. 	The ...
ECON 6100 Chapter-10-Strategy:The Quest to Keep Profit from Eroding.1. Firms maintain their completive edge by 
 	a. 	Providing a good at lower costs than their rivals 
 
 	b. 	Providing a superior product at the same cost as your rival 
 	c. 	Being innovative 
 
 	d. 	All the above 
 
ANSWER: 	d 
TOPICS: 	Section 1: Strategy is Simple 
 
 
2. Which of the following is the foundation for success for a company facing competition 
 	a. 	Create an advantage over the competition 
 
 	b. 	Protect t...
ECON 6100 Chapter 7: Economies of Scale and Scope.1. The law of diminishing marginal productivity states that 
 	a. 	As you expand output, your marginal productivity eventually increases 
 	b. 	As you expand output, your marginal productivity eventually declines 
 	c. 	As you expand output, the total product eventually increases 
 
 	d. 	None of the above 
 
ANSWER: 	b 
TOPICS: 	Section 1: Increasing Marginal Cost 
 
 
2. Average costs curves initially fall 
 	a. 	Due to declining average fixe...