ECN 221 EXAM 1 QUESTIONS AND VERIFIED ANSWERS |
100% CORRECT | ALREADY GRADED A
When we believe the best result will come from the decision we have
made, we are being Correct Answers rational
When we assume that consumers want to pay the lowest price possible,
we assume that consumers are Correct Answers rational
a cost that an entity has incurred, and which it can no longer recover by
any means Correct Answers sunk cost
The use of resources in the most productive way possible to produce the
goods and services that have the greatest total economic value to society
is called Correct Answers efficiency
"More people purchase chap stick when the weather man announces that
we are in for a very windy week." This statement implies that Correct
Answers buying Chap Stick is positively correlated with the
announcement of a windy week.
The concept of the invisible hand was first introduced to economics by
Correct Answers Adam Smith
An economic model Correct Answers discards unnecessary details to
clearly demonstrate the central principles of the economic
activity.
, The four important characteristics that define a perfectly competitive
market are Correct Answers 1. standardized good
2. full information
3. no transactions costs
4. participants are price takers.
If the price of a good increases by 10 percent, its quantity demanded
drops by 50 percent. The price elasticity of demand is Correct Answers -
5.0
It is likely that ________ has an income elasticity less than 1, and
________ have an income elasticity more than 1 Correct Answers
coffee; sailboats
The price elasticity of supply is ________ elastic over time
because ________ Correct Answers more; producers have a longer time
to adjust their production decisions
Considering the concept of cross-price elasticity, if two goods are
substitutes Correct Answers an increase in the price of one causes an
increase in the demand for the other
Cross-price elasticity refers to Correct Answers how much the quantity
demanded of one good changes in response to a change in the price of
a different good.
100% CORRECT | ALREADY GRADED A
When we believe the best result will come from the decision we have
made, we are being Correct Answers rational
When we assume that consumers want to pay the lowest price possible,
we assume that consumers are Correct Answers rational
a cost that an entity has incurred, and which it can no longer recover by
any means Correct Answers sunk cost
The use of resources in the most productive way possible to produce the
goods and services that have the greatest total economic value to society
is called Correct Answers efficiency
"More people purchase chap stick when the weather man announces that
we are in for a very windy week." This statement implies that Correct
Answers buying Chap Stick is positively correlated with the
announcement of a windy week.
The concept of the invisible hand was first introduced to economics by
Correct Answers Adam Smith
An economic model Correct Answers discards unnecessary details to
clearly demonstrate the central principles of the economic
activity.
, The four important characteristics that define a perfectly competitive
market are Correct Answers 1. standardized good
2. full information
3. no transactions costs
4. participants are price takers.
If the price of a good increases by 10 percent, its quantity demanded
drops by 50 percent. The price elasticity of demand is Correct Answers -
5.0
It is likely that ________ has an income elasticity less than 1, and
________ have an income elasticity more than 1 Correct Answers
coffee; sailboats
The price elasticity of supply is ________ elastic over time
because ________ Correct Answers more; producers have a longer time
to adjust their production decisions
Considering the concept of cross-price elasticity, if two goods are
substitutes Correct Answers an increase in the price of one causes an
increase in the demand for the other
Cross-price elasticity refers to Correct Answers how much the quantity
demanded of one good changes in response to a change in the price of
a different good.
