ECON 103 FINAL EXAM QUESTIONS & ANSWERS
Public-choice economists explain the existence of tariffs as being the result chiefly of... -
Answers -comparative advantage
If the price of fertilizer used in most apple orchards rises, the (i)____of apples will
(ii)___. - Answers -(i)supply; (ii)fall.
If the price of fertilizer used in most apple orchards rises, the price of apples will... -
Answers -rise
If the price of fertilizer used in most apple orchards rises, the price of pears (a substitute
good for apples) will... - Answers -rise
If the price of fertilizer used in most apple orchards rises, the price of pie crusts (a good
that is complementary to apples) will... - Answers -fall
If the price of flour used to make pie crusts (a good that is complementary to apples)
rises, the price of apples will... - Answers -fall
If the demand for apples rises and there is a government prohibition on the price of
apples rising, which of the following will be among the results (assuming that the price
of apples was at equilibrium before the demand for apples rose)? - Answers -a
shortage of apples
For the ten years leading up to 2017 Xavier was an extremely rich American; his annual
income in each of those years was in the millions of dollars. Xavier also loves
wristwatches. He loves to buy them, wear them, and to give them as gifts. In 2017,
Xavier's income fell dramatically. It fell to less than $30,000. As a result of this fall in
Xavier's income, economists predict that Xavier's demand for wristwatches... - Answers
-will become more elastic
Which of the following uses of U.S. dollars by Polish owners of U.S. dollars is recorded
on the capital account? - Answers -All of the above uses of dollars are recorded on the
capital account
If consumers come to expect that next month the supply of automobiles will rise relative
to the demand for automobiles, consumer demand today for automobiles will... -
Answers -fall
On December 15th Taco Bell raised the price of its tacos by $0.35. As a result of this
price increase, the revenue that Taco Bell earned on sales of its tacos fell. This fact
implies that, over this price-change range, - Answers -the demand for Taco Bell tacos
is elastic
, Given the information, offered in question #11 on the relationship between changes in
the price of Taco Bell tacos and the revenue that Taco Bell earns on sales of those
tacos, we can safely conclude that if Taco Bell raises the price of its tacos again - say,
on January 1st... - Answers -the revenue that Taco Bell will earn on sales of its tacos
will fall
Which of the following can never occur in reality? - Answers -a cut in income-taxes
rates leaves income-tax revenue unchanged
To produce an extra ton of peaches in South Carolina causes the production of cotton in
South Carolina to fall by two tons. To produce an extra ton of peaches in Texas causes
the production of cotton in Texas to fall by four tons. Which, if any, of these two states -
South Carolina or Texas - has the comparative advantage over the other state in
producing cotton? - Answers -Texas
Which of the following goods or services is most like a public good (as "public good" is
defined by economists)? - Answers -police protection of Boston residents by the Boston
Police Department
According to public-choice economists, one of the benefits of democracy is that it... -
Answers -prevents "condorcet losing" policies from being implemented
The government of the City of Townburgville has long imposed and enforced a strict
price ceiling on gallons of milk sold in that City. (This price ceiling has always been
below the equilibrium price of milk in Townsburgville.) This year, though,
Townburgville's government eliminated the price ceiling on milk. Economists predict that
the following will be among the results of the elimination of this price ceiling on milk. -
Answers -The resulting higher price of milk will cause fewer gallons of milk to be sold
(compared to the number of gallons of milk that would be sold with the price ceiling still
in place).
If in the U.S. consumers' incomes rise, the demand for artificial Christmas trees in the
U.S. will... - Answers -rise
Which of the following actions is inconsistent with economists' assumption that each
individual is self-interested? - Answers -Jim agrees to donate all of his income for the
rest of his life to poor STRANGERS in Ethiopia
The U.S. Postal Service wants to earn more revenue on sales of stamps used for first-
class mail. It should therefore... - Answers -not enough information
Among the reasons that Gordon Tullock and other public-choice scholars give for why
voters are rationally ignorant is that... - Answers -each voter believes that his or her
vote will actually determine the outcome of the election
Public-choice economists explain the existence of tariffs as being the result chiefly of... -
Answers -comparative advantage
If the price of fertilizer used in most apple orchards rises, the (i)____of apples will
(ii)___. - Answers -(i)supply; (ii)fall.
If the price of fertilizer used in most apple orchards rises, the price of apples will... -
Answers -rise
If the price of fertilizer used in most apple orchards rises, the price of pears (a substitute
good for apples) will... - Answers -rise
If the price of fertilizer used in most apple orchards rises, the price of pie crusts (a good
that is complementary to apples) will... - Answers -fall
If the price of flour used to make pie crusts (a good that is complementary to apples)
rises, the price of apples will... - Answers -fall
If the demand for apples rises and there is a government prohibition on the price of
apples rising, which of the following will be among the results (assuming that the price
of apples was at equilibrium before the demand for apples rose)? - Answers -a
shortage of apples
For the ten years leading up to 2017 Xavier was an extremely rich American; his annual
income in each of those years was in the millions of dollars. Xavier also loves
wristwatches. He loves to buy them, wear them, and to give them as gifts. In 2017,
Xavier's income fell dramatically. It fell to less than $30,000. As a result of this fall in
Xavier's income, economists predict that Xavier's demand for wristwatches... - Answers
-will become more elastic
Which of the following uses of U.S. dollars by Polish owners of U.S. dollars is recorded
on the capital account? - Answers -All of the above uses of dollars are recorded on the
capital account
If consumers come to expect that next month the supply of automobiles will rise relative
to the demand for automobiles, consumer demand today for automobiles will... -
Answers -fall
On December 15th Taco Bell raised the price of its tacos by $0.35. As a result of this
price increase, the revenue that Taco Bell earned on sales of its tacos fell. This fact
implies that, over this price-change range, - Answers -the demand for Taco Bell tacos
is elastic
, Given the information, offered in question #11 on the relationship between changes in
the price of Taco Bell tacos and the revenue that Taco Bell earns on sales of those
tacos, we can safely conclude that if Taco Bell raises the price of its tacos again - say,
on January 1st... - Answers -the revenue that Taco Bell will earn on sales of its tacos
will fall
Which of the following can never occur in reality? - Answers -a cut in income-taxes
rates leaves income-tax revenue unchanged
To produce an extra ton of peaches in South Carolina causes the production of cotton in
South Carolina to fall by two tons. To produce an extra ton of peaches in Texas causes
the production of cotton in Texas to fall by four tons. Which, if any, of these two states -
South Carolina or Texas - has the comparative advantage over the other state in
producing cotton? - Answers -Texas
Which of the following goods or services is most like a public good (as "public good" is
defined by economists)? - Answers -police protection of Boston residents by the Boston
Police Department
According to public-choice economists, one of the benefits of democracy is that it... -
Answers -prevents "condorcet losing" policies from being implemented
The government of the City of Townburgville has long imposed and enforced a strict
price ceiling on gallons of milk sold in that City. (This price ceiling has always been
below the equilibrium price of milk in Townsburgville.) This year, though,
Townburgville's government eliminated the price ceiling on milk. Economists predict that
the following will be among the results of the elimination of this price ceiling on milk. -
Answers -The resulting higher price of milk will cause fewer gallons of milk to be sold
(compared to the number of gallons of milk that would be sold with the price ceiling still
in place).
If in the U.S. consumers' incomes rise, the demand for artificial Christmas trees in the
U.S. will... - Answers -rise
Which of the following actions is inconsistent with economists' assumption that each
individual is self-interested? - Answers -Jim agrees to donate all of his income for the
rest of his life to poor STRANGERS in Ethiopia
The U.S. Postal Service wants to earn more revenue on sales of stamps used for first-
class mail. It should therefore... - Answers -not enough information
Among the reasons that Gordon Tullock and other public-choice scholars give for why
voters are rationally ignorant is that... - Answers -each voter believes that his or her
vote will actually determine the outcome of the election
