Eco 365 final exam Study guides, Class notes & Summaries

ECO 365 Final Exam Answers 1) If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of demand for movie tickets is about: A. 0.0 B. 0.4 C. 0.6 D. 2.5   2) A basic difference between microeconomics and macroeconomics is that microeconomics A. focuses on the choices of individual consumers, while macroeconomics considers the behavior of large businesses B. focuses on financial reporting by individuals, while ma...

ECO 365 Final Exam Guide 2019

1). The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will: Exceed the marginal cost of diamonds but equal to the average total cost of diamonds. Exceed both the marginal cost and the average total cost of diamonds. Be equal to the marginal cost of diamonds. Be equal to the average total cost of diamonds. 2). Using 100 workers an...

1) Which of the following statements is true about a downward-sloping demand curve that is a straight line? The slope remains the same, but elasticity falls as you move down the demand curve. The slope and the elasticity fall as you move down the demand curve. The slope remains the same, but elasticity rises as you move down the demand curve. The slope and elasticity are the same at all points. 2) The best example of positive externality is: Roller coaster rides Pollution Education Alcoholic be...

1.Because you can only obtain more of one good by giving up some of another good, the shape of a production possibility curve is _______________. downward-sloping perfectly vertical perfectly horizontal upward-sloping 2. Refer to the table shown. The average product when eight workers are employed is _6____ Number of workers Total Output 1. 4 2. 10 3. 18 4. 28 5. 35 6. 41 7. 45 8. 48 9. 50 10. 49 3. A resource is said to have a comparative advant...

ECO 365 FINAL EXAM / ECO365 FINAL EXAM (Latest) 1. During the winter break, Sam decides to go for a skiing vacation in Aspen instead of taking piano lessons. The opportunity cost of the skiing vacation is the: cost of accommodation and food in Aspen. value of piano lessons. cost of buying a piano. amount paid to the skiing instructor. 2. Which of the following is an example of a negative externality? Smith reducing the consumption of imported wine following an increase in the price of imported ...

1. During the winter break, Sam decides to go for a skiing vacation in Aspen instead of taking piano lessons. The opportunity cost of the skiing vacation is the: cost of accommodation and food in Aspen. value of piano lessons. cost of buying a piano. amount paid to the skiing instructor. 2. Which of the following is an example of a negative externality? Smith reducing the consumption of imported wine following an increase in the price of imported wine Phoebe refusing to contribute to the buildi...

1. During the winter break, Sam decides to go for a skiing vacation in Aspen instead of taking piano lessons. The opportunity cost of the skiing vacation is the: cost of accommodation and food in Aspen. value of piano lessons. cost of buying a piano. amount paid to the skiing instructor. 2. Which of the following is an example of a negative externality? Smith reducing the consumption of imported wine following an increase in the price of imported wine Phoebe refusing to contribute to the buildi...

ECO 365 Final Exam In 1997, the federal government reinstated a 10 percent excise tax on airline tickets. The industry tried to pass on the full 10 percent ticket tax to consumers but was able to boost fares by only 4 percent. From this you can conclude that the: Demand for airline tickets is perfectly inelastic. Supply of airline tickets is perfectly inelastic. Demand elasticity for airline tickets is greater than zero in absolute value. Supply elasticity of airline tickets is less than infin...

ECO 365 Final Exam 1) An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in A. microeconomic research B. macroeconomic research C. theoretical research, because there is no data on these variables D. empirical research, because there is no economic theory related to these variables 2) A basic difference between microeconomics and macroeconomics is that microeconomics A. focuses on the choices of individual consumers, whil...