UNT ECON 1100 EXAM 2 PRACTICE
PACK 2026 TESTED QUESTIONS AND
ANSWERS
◉ Which of the following will cause a decrease in the demand for
batteries?
Answer: An increase in the price of digital cameras, a complement for
batteries
◉ Based on the information in the table below, the opportunity cost of
producing one clock in Mexico is:
Clock Radio
Spain 4 hours 2 hours
Mexico 3 hours 6 hours
Answer: 1/2 radio.
◉ Which of the following is a normative microeconomic statement?
Answer: Government should lower the taxes paid by small businesses.
◉ An outward shift of a production possibilities frontier illustrates that:
Answer: economic growth has occurred.
◉ If the demand for electricity is inelastic but not perfectly inelastic, a
10% increase in the price of electricity is likely to:
, Answer: lead to a decrease in the quantity demanded of electricity of
less than 10%.
◉ If quantity demanded is 30 when price is $3 and quantity demanded is
20 when price is $5, then total revenue __________ if price increases
from $3 to $5, implying that demand is _________.
Answer: increases; inelastic
◉ In the market for used cars, a surplus of used cars would, ceteris
paribus:
Answer: put downward pressure on the price of used cars.
◉ In the graph below, a shift from PPF1 to PPF2 will occur as a result
of:
Answer: an increase in the resources and technology used to produce
food and clothing.
◉ Initially, assume Country A is producing and consuming 10 cars and
20 boats, while Country B is producing and consuming 20 cars and 40
boats. The two countries then decide to specialize according to
comparative advantage and engage in trade. The potential gains from
trade for both countries combined work out to be:
Answer: 20 boats, to be divided between the two countries.
◉ Which of the following is an example of capital as a factor of
production?
PACK 2026 TESTED QUESTIONS AND
ANSWERS
◉ Which of the following will cause a decrease in the demand for
batteries?
Answer: An increase in the price of digital cameras, a complement for
batteries
◉ Based on the information in the table below, the opportunity cost of
producing one clock in Mexico is:
Clock Radio
Spain 4 hours 2 hours
Mexico 3 hours 6 hours
Answer: 1/2 radio.
◉ Which of the following is a normative microeconomic statement?
Answer: Government should lower the taxes paid by small businesses.
◉ An outward shift of a production possibilities frontier illustrates that:
Answer: economic growth has occurred.
◉ If the demand for electricity is inelastic but not perfectly inelastic, a
10% increase in the price of electricity is likely to:
, Answer: lead to a decrease in the quantity demanded of electricity of
less than 10%.
◉ If quantity demanded is 30 when price is $3 and quantity demanded is
20 when price is $5, then total revenue __________ if price increases
from $3 to $5, implying that demand is _________.
Answer: increases; inelastic
◉ In the market for used cars, a surplus of used cars would, ceteris
paribus:
Answer: put downward pressure on the price of used cars.
◉ In the graph below, a shift from PPF1 to PPF2 will occur as a result
of:
Answer: an increase in the resources and technology used to produce
food and clothing.
◉ Initially, assume Country A is producing and consuming 10 cars and
20 boats, while Country B is producing and consuming 20 cars and 40
boats. The two countries then decide to specialize according to
comparative advantage and engage in trade. The potential gains from
trade for both countries combined work out to be:
Answer: 20 boats, to be divided between the two countries.
◉ Which of the following is an example of capital as a factor of
production?
