ECON 202 Ole Miss Hayes Midterm Exam |
All Questions and Correct Answers |
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The greater the ease of shifting resources from product X to product Y in the
production process, the greater is the elasticity of supply of product Y. ---------
CORRECT ANSWER-----------------true
If the elasticity coefficient of supply is 0.7, supply is elastic. ---------CORRECT
ANSWER-----------------false
The smaller the number of good substitutes for a product, the greater will be the
price elasticity of demand for it. ---------CORRECT ANSWER-----------------false
Which of the following is not characteristic of the demand for a commodity that is
elastic? ---------CORRECT ANSWER-----------------Total revenue increases if price is
increased.
A firm can sell as much as it wants at a constant price. Demand is thus ---------
CORRECT ANSWER-----------------perfectly elastic
,When the percentage change in price is greater than the resulting percentage
change in quantity demanded, ---------CORRECT ANSWER-----------------an increase
in price will increase total revenue.
Which product is most likely to be the most price elastic? ---------CORRECT
ANSWER-----------------automobiles
For which product is the income elasticity of demand most likely to be negative? -
--------CORRECT ANSWER-----------------used clothing
If the percentage change in quantity demanded is less than the percentage
change in price, then demand is said to be elastic. ---------CORRECT ANSWER--------
---------false
In the price range where demand is elastic, if the seller of the good raises its price,
then total revenues will increase. ---------CORRECT ANSWER-----------------false
A perfectly inelastic demand curve ---------CORRECT ANSWER-----------------graphs
as a line parallel to the vertical axis.
, The utility of a good or service ---------CORRECT ANSWER-----------------is the
satisfaction or pleasure one gets from consuming it.
Marginal utility can be ---------CORRECT ANSWER-----------------positive, negative, or
zero.
The law of diminishing marginal utility states that ---------CORRECT ANSWER---------
--------beyond some point, additional units of a product will yield less and less
extra satisfaction to a consumer.
If the price of product X rises, then the resulting decline in the amount purchased
will ---------CORRECT ANSWER-----------------increase the marginal utility of the last
unit consumed of this good.
Where total utility is at a maximum, marginal utility is ---------CORRECT ANSWER---
--------------zero
When a consumer shifts purchases from X to Y, the marginal utility of X falls and
the marginal utility of Y rises. ---------CORRECT ANSWER-----------------false
All Questions and Correct Answers |
Verified Answers | Newest Version | Just
Released
The greater the ease of shifting resources from product X to product Y in the
production process, the greater is the elasticity of supply of product Y. ---------
CORRECT ANSWER-----------------true
If the elasticity coefficient of supply is 0.7, supply is elastic. ---------CORRECT
ANSWER-----------------false
The smaller the number of good substitutes for a product, the greater will be the
price elasticity of demand for it. ---------CORRECT ANSWER-----------------false
Which of the following is not characteristic of the demand for a commodity that is
elastic? ---------CORRECT ANSWER-----------------Total revenue increases if price is
increased.
A firm can sell as much as it wants at a constant price. Demand is thus ---------
CORRECT ANSWER-----------------perfectly elastic
,When the percentage change in price is greater than the resulting percentage
change in quantity demanded, ---------CORRECT ANSWER-----------------an increase
in price will increase total revenue.
Which product is most likely to be the most price elastic? ---------CORRECT
ANSWER-----------------automobiles
For which product is the income elasticity of demand most likely to be negative? -
--------CORRECT ANSWER-----------------used clothing
If the percentage change in quantity demanded is less than the percentage
change in price, then demand is said to be elastic. ---------CORRECT ANSWER--------
---------false
In the price range where demand is elastic, if the seller of the good raises its price,
then total revenues will increase. ---------CORRECT ANSWER-----------------false
A perfectly inelastic demand curve ---------CORRECT ANSWER-----------------graphs
as a line parallel to the vertical axis.
, The utility of a good or service ---------CORRECT ANSWER-----------------is the
satisfaction or pleasure one gets from consuming it.
Marginal utility can be ---------CORRECT ANSWER-----------------positive, negative, or
zero.
The law of diminishing marginal utility states that ---------CORRECT ANSWER---------
--------beyond some point, additional units of a product will yield less and less
extra satisfaction to a consumer.
If the price of product X rises, then the resulting decline in the amount purchased
will ---------CORRECT ANSWER-----------------increase the marginal utility of the last
unit consumed of this good.
Where total utility is at a maximum, marginal utility is ---------CORRECT ANSWER---
--------------zero
When a consumer shifts purchases from X to Y, the marginal utility of X falls and
the marginal utility of Y rises. ---------CORRECT ANSWER-----------------false
