ECON 351>FINAL EXAM
MICROECONMICS 2021
Ceteris paribus" means:
an association of variables.
all other things remain
constant. a cause and effect
relationship.
considering the influences of other variables.
An increase in the federal minimum wage causes an increase in unemployment among
teenagers" is a:
statement of positive
economics. statement of
normative economics. testable
value judgment.
fallacy of composition.
As consumption of a good increases, the extra satisfaction received from consuming an
additional unit of the good decreases." This statement is known as the law of:
demand.
increasing costs.
diminishing marginal
utility. diminishing
marginal returns. total
utility.
Because of unseasonable cold weather, much of the peach crop has been destroyed."
This statement indicates that the:
price of peaches will fall.
quantity of peaches that will be available at any given price has
decreased. demand for peaches will shift to the left.
quantity of peaches that will be available at any given price have increased.
P a g e 1 | 60
,I'm tired of eating muffins for breakfast. Today, I'm trying a bagel." These statements
most clearly reflect the:
law of increasing returns to
scale. second law of demand.
law of diminishing marginal
utility. law of comparative
advantage.
P a g e 2 | 60
,Ceteris paribus, a change in the price of a good always results in a
change in: income.
tastes.
quantity demanded.
both income and
tastes. the price of
other goods.
A "kinked" demand curve reflects a tendency on the part of an
oligopolist to: follow price increases but not price
reductions.
following price reductions but
not price increases.
be unconcerned with rivals'
behavior. None of these.
A bus is mostly filled with passengers and ready to travel from Los Angeles to San
Francisco. At the last minute, a person comes running up to the bus and takes a seat.
The change in the bus company's total cost as a result of transporting one more
passenger on this trip is called:
marginal cost.
average total
cost. variable
cost.
fixed cost.
opportunity cost.
A cartel is a formal agreement among firms to control price and output of a product.
True
False
A cartel:
is a group of firms formally agreeing to control the price and the output of a
product.
has as its primary goal to reap monopoly profits by replacing competition with
cooperation. is illegal in the United States, but not in other nations.
all of these
P a g e 3 | 60
, A chain saw is an example of which of the following factors of production?
Land.
Labor.
Capital.
None of these.
A change in supply cannot be caused by a change in:
resource
prices.
technology.
prices of other goods.
the price of the good
itself. the number of
suppliers.
A common characteristic of oligopolies is:
interdependence in pricing
decisions. independent pricing
decisions.
low industry concentration.
few or no plant-level economies of scale.
A competitive car wash currently hires 4 workers, who together can wash 80 cars per
day. The market price of car washes is $5 per wash, and the price of workers is $60 per
day. The car wash should hire a fifth worker if it would increase total production to at
least:
92 cars per
day. 100 cars
per day. 104
cars per day.
110 cars per day.
P a g e 4 | 60
MICROECONMICS 2021
Ceteris paribus" means:
an association of variables.
all other things remain
constant. a cause and effect
relationship.
considering the influences of other variables.
An increase in the federal minimum wage causes an increase in unemployment among
teenagers" is a:
statement of positive
economics. statement of
normative economics. testable
value judgment.
fallacy of composition.
As consumption of a good increases, the extra satisfaction received from consuming an
additional unit of the good decreases." This statement is known as the law of:
demand.
increasing costs.
diminishing marginal
utility. diminishing
marginal returns. total
utility.
Because of unseasonable cold weather, much of the peach crop has been destroyed."
This statement indicates that the:
price of peaches will fall.
quantity of peaches that will be available at any given price has
decreased. demand for peaches will shift to the left.
quantity of peaches that will be available at any given price have increased.
P a g e 1 | 60
,I'm tired of eating muffins for breakfast. Today, I'm trying a bagel." These statements
most clearly reflect the:
law of increasing returns to
scale. second law of demand.
law of diminishing marginal
utility. law of comparative
advantage.
P a g e 2 | 60
,Ceteris paribus, a change in the price of a good always results in a
change in: income.
tastes.
quantity demanded.
both income and
tastes. the price of
other goods.
A "kinked" demand curve reflects a tendency on the part of an
oligopolist to: follow price increases but not price
reductions.
following price reductions but
not price increases.
be unconcerned with rivals'
behavior. None of these.
A bus is mostly filled with passengers and ready to travel from Los Angeles to San
Francisco. At the last minute, a person comes running up to the bus and takes a seat.
The change in the bus company's total cost as a result of transporting one more
passenger on this trip is called:
marginal cost.
average total
cost. variable
cost.
fixed cost.
opportunity cost.
A cartel is a formal agreement among firms to control price and output of a product.
True
False
A cartel:
is a group of firms formally agreeing to control the price and the output of a
product.
has as its primary goal to reap monopoly profits by replacing competition with
cooperation. is illegal in the United States, but not in other nations.
all of these
P a g e 3 | 60
, A chain saw is an example of which of the following factors of production?
Land.
Labor.
Capital.
None of these.
A change in supply cannot be caused by a change in:
resource
prices.
technology.
prices of other goods.
the price of the good
itself. the number of
suppliers.
A common characteristic of oligopolies is:
interdependence in pricing
decisions. independent pricing
decisions.
low industry concentration.
few or no plant-level economies of scale.
A competitive car wash currently hires 4 workers, who together can wash 80 cars per
day. The market price of car washes is $5 per wash, and the price of workers is $60 per
day. The car wash should hire a fifth worker if it would increase total production to at
least:
92 cars per
day. 100 cars
per day. 104
cars per day.
110 cars per day.
P a g e 4 | 60
