Top Hat Questions and Answers
Note that the answers to all the questions are at the bottom of the file. I have omitted the puzzles and quotes.
3) You are a factory worker and you lose your job. You hear in the news that the U.S. has imported more from China this
year than last year. You conclude that you have lost your job to China. The problem with your conclusion is…
a) the U.S. also exported more to China this year than the year before.
b) the U.S. has imposed tariffs on Chinese imports.
c) the unemployment rate is lower today than it was 40 years ago.
d) two events may have happened around the same point in time, but that doesn’t mean one event caused the other.
4) The value of the best thing you give up to get something is…
a) marginal cost.
b) sunk cost.
c) fixed cost.
d) opportunity cost.
5) Suppose I buy a book for $20. I was willing to pay $30 for it, and the bookstore would have been willing to sell it for as
little as $10 (the amount for which they could sell it wholesale). What is the total gain to both sides?
6) Suppose the price of raspberries is $10 per pound, but then falls to $8 per pound. The Law of Demand states that…
a) demand will rise.
b) demand will fall.
c) quantity demanded will rise.
d) quantity demanded will fall.
7) Suppose the price of one year’s tuition at FSU rises from $5,000 to $15,000. Which of the following will occur, ceteris
paribus?
a) The quantity of students who choose to attend FSU will rise.
b) The quantity of students who choose to attend FSU will fall.
c) Other universities will lower their tuition.
d) Cars will become more fuel efficient.
8) If you are willing to pay $80 for your textbook, but you find a used copy for $20, your consumer surplus is…
a) $80
b) $20
c) $60
This study source was downloaded by 100000852681095 from CourseHero.com on 12-12-2022 23:29:26 GMT -06:00
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, d) $100
9) If the surgeon general announces that wearing shoes is bad for your posture, which of the following will occur?
a) Demand for shoes will shift to the right.
b) Demand for shoes will shift to the left.
c) Quantity of shoes demanded will rise.
d) The supply of shoes will fall.
10) If a person’s income goes up, and that person buys more chicken sandwiches, then we can conclude that for this
person…
a) chicken sandwiches are a normal good.
b) chicken sandwiches are an inferior good.
c) chicken sandwiches are substitutes.
d) chicken sandwiches are complements.
11) Consider the supply curve for potatoes. If the price of potatoes falls, then…
a) the quantity supplied will fall.
b) the quantity supplied will rise.
c) the supply will rise.
d) none of the above.
12) You sell your friend your old iPhone for $300, but you would have been willing to sell it for $250. Your producer
surplus is…
13) A tornado destroys several carpet factories in North Georgia. Which of the following occurs?
a) The quantity of carpet supplied rises.
b) The price of carpet falls.
c) The carpet supply curve shifts to the left.
d) The carpet supply curve shifts to the right.
14) If the price of cotton yarn (which is used to make t-shirts) goes up, which of the following will happen in the market
for t-shirts?
a) Supply will shift to the right, and price will fall.
b) Supply will shift to the left, and price will rise.
c) Demand will shift to the right, and price will rise.
d) Demand will shift to the left, and price will fall.
This study source was downloaded by 100000852681095 from CourseHero.com on 12-12-2022 23:29:26 GMT -06:00
https://www.coursehero.com/file/28942321/Top-Hat-Questions-and-Answers-For-Exam-1pdf/
Note that the answers to all the questions are at the bottom of the file. I have omitted the puzzles and quotes.
3) You are a factory worker and you lose your job. You hear in the news that the U.S. has imported more from China this
year than last year. You conclude that you have lost your job to China. The problem with your conclusion is…
a) the U.S. also exported more to China this year than the year before.
b) the U.S. has imposed tariffs on Chinese imports.
c) the unemployment rate is lower today than it was 40 years ago.
d) two events may have happened around the same point in time, but that doesn’t mean one event caused the other.
4) The value of the best thing you give up to get something is…
a) marginal cost.
b) sunk cost.
c) fixed cost.
d) opportunity cost.
5) Suppose I buy a book for $20. I was willing to pay $30 for it, and the bookstore would have been willing to sell it for as
little as $10 (the amount for which they could sell it wholesale). What is the total gain to both sides?
6) Suppose the price of raspberries is $10 per pound, but then falls to $8 per pound. The Law of Demand states that…
a) demand will rise.
b) demand will fall.
c) quantity demanded will rise.
d) quantity demanded will fall.
7) Suppose the price of one year’s tuition at FSU rises from $5,000 to $15,000. Which of the following will occur, ceteris
paribus?
a) The quantity of students who choose to attend FSU will rise.
b) The quantity of students who choose to attend FSU will fall.
c) Other universities will lower their tuition.
d) Cars will become more fuel efficient.
8) If you are willing to pay $80 for your textbook, but you find a used copy for $20, your consumer surplus is…
a) $80
b) $20
c) $60
This study source was downloaded by 100000852681095 from CourseHero.com on 12-12-2022 23:29:26 GMT -06:00
https://www.coursehero.com/file/28942321/Top-Hat-Questions-and-Answers-For-Exam-1pdf/
, d) $100
9) If the surgeon general announces that wearing shoes is bad for your posture, which of the following will occur?
a) Demand for shoes will shift to the right.
b) Demand for shoes will shift to the left.
c) Quantity of shoes demanded will rise.
d) The supply of shoes will fall.
10) If a person’s income goes up, and that person buys more chicken sandwiches, then we can conclude that for this
person…
a) chicken sandwiches are a normal good.
b) chicken sandwiches are an inferior good.
c) chicken sandwiches are substitutes.
d) chicken sandwiches are complements.
11) Consider the supply curve for potatoes. If the price of potatoes falls, then…
a) the quantity supplied will fall.
b) the quantity supplied will rise.
c) the supply will rise.
d) none of the above.
12) You sell your friend your old iPhone for $300, but you would have been willing to sell it for $250. Your producer
surplus is…
13) A tornado destroys several carpet factories in North Georgia. Which of the following occurs?
a) The quantity of carpet supplied rises.
b) The price of carpet falls.
c) The carpet supply curve shifts to the left.
d) The carpet supply curve shifts to the right.
14) If the price of cotton yarn (which is used to make t-shirts) goes up, which of the following will happen in the market
for t-shirts?
a) Supply will shift to the right, and price will fall.
b) Supply will shift to the left, and price will rise.
c) Demand will shift to the right, and price will rise.
d) Demand will shift to the left, and price will fall.
This study source was downloaded by 100000852681095 from CourseHero.com on 12-12-2022 23:29:26 GMT -06:00
https://www.coursehero.com/file/28942321/Top-Hat-Questions-and-Answers-For-Exam-1pdf/
