ECON 160 FINAL EXAM BINGHAMTON
UNIVERSITY EXAM REVIEW QUESTIONS AND
ANSWERS; 100% PASS GUARANTEED; GRADED
A+
A booming economy and resulting increase in incomes increases
home sales:
A. Move along the demand curve (change in quantity
demanded);
B. A shift in the demand curve (change in demand). - correct
answer- B. A shift in the demand curve (change in
demand).
=> Price of homes didn't change, hence it is not the movement
along the demand curve. Incomes changed, it shifts the curve.
A country was hit by a zombie apocalypse. The following is likely
to happen to the PPF of the country:
A. Move to the right and up;
B. Move to the left and down;
C. Stay the same; - correct answer- B. Move to the left
and down;
,=> A lot of people will die, some technology will be lost. As a
result the country will not be able to produce as many things as
before even if it uses the remaining resources fully.
A monopoly is currently producing at an output level where MR
is less than
MC. This suggests that:
A) Profit is currently being maximized
B) Profit can be maximized by increasing output C) Profit can be
maximized by decreasing output D) A firm is making losses -
correct answer- C) Profit can be maximized by decreasing
output
A new cherry picking machine makes it easier to pick cherries. As
a result supply of cherries will ___________, and the supply
curve for cherries will__________.
A. Increase; shift to the left.
B. Decrease; shift to the left.
C. Increase; shift to the right.
D. Decrease; shift to the right. - correct answer- C.
Increase;shift to the right.
,=>When supply increases it shi>s to the right and down (larger
quanitty is supplied at each price since thanks to the machine
the producers can collect more cherries).
A price of cookies (a substitute for cupcakes) decreased. How is
it going to affect equilibrium price and quantity of cupcakes?
A. Increase price; decrease quantity;
B. Increase price; increase quantity;
C. Decrease price; decrease quantity;
D. Decrease price; increase quantity; - correct answer- C.
Decrease price; decrease quantity;
=> We are interested in the market for cupcakes. When a price
of a substitute good (cookies) decreases, the demand for
cupcakes decreases (shifts left).
A study has shown that the demand for coffee is inelasAc. Given
this informaAon we expect to see _________________ in the
quanAty demanded of coffee in the quanAty demanded of
coffee when the price of coffee increases by a lot.
A. A large decrease
B. A small decrease
C. A proporRonal change
, D. No change - correct answer- B. A small decrease
Ahmed is willing to mow lawns for $10 each, Samuel is willing to
mow lawns for $20 each, and Boris is willing to mow lawns for
$30 each. If the going rate for lawn mowing is $12, what is the
total producer surplus received by the 3 of them?
A. $2
B. $32
C. $50
D. -$24 - correct answer- A. $2
Aly's income increased by 10%. His income elas:city of demand
for foreign travel is 5. What will happen to Aly's demand for
foreign travel?
A. It will increase by 2%;
B. It will decrease by 2%;
C. It will increase by 50%;
D. It will decrease by 50%; E. We can't tell. - correct answer-
C. It will increase by 50%;
5*10%=50%.
UNIVERSITY EXAM REVIEW QUESTIONS AND
ANSWERS; 100% PASS GUARANTEED; GRADED
A+
A booming economy and resulting increase in incomes increases
home sales:
A. Move along the demand curve (change in quantity
demanded);
B. A shift in the demand curve (change in demand). - correct
answer- B. A shift in the demand curve (change in
demand).
=> Price of homes didn't change, hence it is not the movement
along the demand curve. Incomes changed, it shifts the curve.
A country was hit by a zombie apocalypse. The following is likely
to happen to the PPF of the country:
A. Move to the right and up;
B. Move to the left and down;
C. Stay the same; - correct answer- B. Move to the left
and down;
,=> A lot of people will die, some technology will be lost. As a
result the country will not be able to produce as many things as
before even if it uses the remaining resources fully.
A monopoly is currently producing at an output level where MR
is less than
MC. This suggests that:
A) Profit is currently being maximized
B) Profit can be maximized by increasing output C) Profit can be
maximized by decreasing output D) A firm is making losses -
correct answer- C) Profit can be maximized by decreasing
output
A new cherry picking machine makes it easier to pick cherries. As
a result supply of cherries will ___________, and the supply
curve for cherries will__________.
A. Increase; shift to the left.
B. Decrease; shift to the left.
C. Increase; shift to the right.
D. Decrease; shift to the right. - correct answer- C.
Increase;shift to the right.
,=>When supply increases it shi>s to the right and down (larger
quanitty is supplied at each price since thanks to the machine
the producers can collect more cherries).
A price of cookies (a substitute for cupcakes) decreased. How is
it going to affect equilibrium price and quantity of cupcakes?
A. Increase price; decrease quantity;
B. Increase price; increase quantity;
C. Decrease price; decrease quantity;
D. Decrease price; increase quantity; - correct answer- C.
Decrease price; decrease quantity;
=> We are interested in the market for cupcakes. When a price
of a substitute good (cookies) decreases, the demand for
cupcakes decreases (shifts left).
A study has shown that the demand for coffee is inelasAc. Given
this informaAon we expect to see _________________ in the
quanAty demanded of coffee in the quanAty demanded of
coffee when the price of coffee increases by a lot.
A. A large decrease
B. A small decrease
C. A proporRonal change
, D. No change - correct answer- B. A small decrease
Ahmed is willing to mow lawns for $10 each, Samuel is willing to
mow lawns for $20 each, and Boris is willing to mow lawns for
$30 each. If the going rate for lawn mowing is $12, what is the
total producer surplus received by the 3 of them?
A. $2
B. $32
C. $50
D. -$24 - correct answer- A. $2
Aly's income increased by 10%. His income elas:city of demand
for foreign travel is 5. What will happen to Aly's demand for
foreign travel?
A. It will increase by 2%;
B. It will decrease by 2%;
C. It will increase by 50%;
D. It will decrease by 50%; E. We can't tell. - correct answer-
C. It will increase by 50%;
5*10%=50%.
