ECO 365 FINAL EXAM
Which of the following statements is true about a downward-sloping demand curve that is a
straight line?
The slope remains the same, but elasticity falls as you move down the demand curve.
The slope and the elasticity fall as you move down the demand curve.
The slope remains the same, but elasticity rises as you move down the demand curve.
The slope and elasticity are the same at all points.
The best example of positive externality is:
Roller coaster rides
Pollution
Education
Alcoholic beverages
, Suppose that college tuition is higher this year than last and that more students are enrolled in
college this year than last year. Based on this information, we can best conclude that:
despite the increase in price, quantity demanded rose due to some other factors
changing.
this situation has nothing to do with the law of demand.
the law of demand is invalid.
the demand for a college education is positively sloped.
Suppose foreign shrimp prices drop by 32 percent and importers gain a 90 percent market share.
From this information, what would economists strongly suspect about this industry?
The large sales of foreigners indicate they are better strategic business bargainers
than Americans are.
Foreign sellers probably are colluding on price to maximize profits.
Americans have a comparative advantage in shrimping.
Foreigners have a comparative advantage in shrimping.
Which of the following statements is true about a downward-sloping demand curve that is a
straight line?
The slope remains the same, but elasticity falls as you move down the demand curve.
The slope and the elasticity fall as you move down the demand curve.
The slope remains the same, but elasticity rises as you move down the demand curve.
The slope and elasticity are the same at all points.
The best example of positive externality is:
Roller coaster rides
Pollution
Education
Alcoholic beverages
, Suppose that college tuition is higher this year than last and that more students are enrolled in
college this year than last year. Based on this information, we can best conclude that:
despite the increase in price, quantity demanded rose due to some other factors
changing.
this situation has nothing to do with the law of demand.
the law of demand is invalid.
the demand for a college education is positively sloped.
Suppose foreign shrimp prices drop by 32 percent and importers gain a 90 percent market share.
From this information, what would economists strongly suspect about this industry?
The large sales of foreigners indicate they are better strategic business bargainers
than Americans are.
Foreign sellers probably are colluding on price to maximize profits.
Americans have a comparative advantage in shrimping.
Foreigners have a comparative advantage in shrimping.
