Econ 101 Final Exam 104 QUESTIONS
AND ANSWERS GRADED A LATEST
VERSION
In a competitive market, excess demand for a good exists whenever....?
a. resources are scarce
b. the current price is below the equilibrium price
c. the current price is above the equilibrium price
d. sellers are subject to the constraints imposed by input prices and technology e. the
quantity supplied at the current price exceeds the quantity demanded - CORRECT
ANSWERS b. the current price is below the equilibrium price
Which of the following is an example of a stock variable?
a. The amount of cereal a person buys each week
b. The amount of cereal a child consumes each month
c. The amount of cereal produced each day
d. The amount of cereal in a person's pantry
e. None of these are stock variables - CORRECT ANSWERS d. The amount of cereal
in a person's pantry
Economics is...?
a. exclusively the study of business firms
b. applicable only when scarcity is not a problem
c. exclusively the study of the markets for stocks and bonds
d. fundamentally the same as sociology
e. the study of choice under conditions of scarcity - CORRECT ANSWERS e. the
study of choice under conditions of scarcity
Complementary goods...
a. do not adhere to the law of demand
b. are usually used in conjunction with each other
c. are usually used in place of one another
d. are goods whose demand rises as incomes rise e. are goods whose demand falls as
wealth falls - CORRECT ANSWERS b. are usually used in conjunction with each
other
If Greg uses a special glue to make model planes that he sells and the price of his
model planes increases, then one would expect that the equilibrium price of the special
glue would _______ and the equilibrium quantity would _________.
a. increase; increase
b. decrease; decrease
,c. increase; decrease
d. decrease; increase
e. increase; indeterminant - CORRECT ANSWERS a. increase; increase
Positive economics deals with...
a. opinions that affirm economists' theories
b. statements of fact
c. practical ways of improving people's self-esteem by making money
d. statements about the way things ought to be
e. theories about improving people's self-esteem - CORRECT ANSWERS b.
statements of fact
Microeconomics....
a. is purely theoretical and has little value in explaining real-world phenomena b.
focuses on what is happening in the economy as a whole
c. addresses scarcity from a global perspective
d. examines how individuals, households, and firms make economic decisions
e. answers the fundamental economic questions of how, when, where, and why -
CORRECT ANSWERS d. examines how individuals, households, and firms make
economic decisions
The demand curve for dolls shows the quantity of dolls demanded
a. at each level of income
b. at the equilibrium price for dolls
c. by U.S. consumers
d. by suppliers of those dolls
e. at each possible price of dolls - CORRECT ANSWERS e. at each possible price of
dolls
According to the law of demand,
a. there is a positive relationship between quantity demanded and price
b. as the price rises, demand will shift to the right
c. as the price rises, consumers will continue to purchase the same quantity of the good
d. as the price rises, demand will shift to the left
e. there is a negative relationship between quantity demanded and price - CORRECT
ANSWERS e. there is a negative relationship between quantity demanded and price
Even though households may have unlimited wants, they have to allocate their
spending carefully because they
a. do not want their credit card bills to be too high
b. worry about their taxes
c. have limited intelligence
d. have limited incomes
e. basically want to become wealthy - CORRECT ANSWERS d. have limited incomes
An entrepreneur is best described as
, a. someone that is hired to work in a firm
b. someone who creates human capital
c. someone with the ability to combine other resources in a productive enterprise
d. anyone who owns productive enterprise
e. anyone who produces long-lived physical capital - CORRECT ANSWERS c.
someone with the ability to combine other resources in a productive enterprise
The overall performance of the economic system as a whole is the focus of
a. international finance
b. labor economics
c. microeconomics
d. macroeconomics
e. public economics - CORRECT ANSWERS d. macroeconomics
Microeconomics analyzes individual parts of the economy rather than broad economic
aggregates.
a. True
b. False - CORRECT ANSWERS a. True
Suppose that the Council of Economic Advisers tells the President that "the
unemployment rate is 4 percent." The President responds, "That rate is still too high."
The President's statement is
a. a normative statement
b. a positive statement
c. empirically verifiable by checking economic data
d. an indisputable statistical fact
e. an incorrect positive statement - CORRECT ANSWERS a. a normative statement
Individuals face opportunity costs because
a. the minimum wage is too low
b. technology is improving too quickly
c. time and funds are scarce
d. government cutbacks are widespread, except possibly among society's most affluent
households
e. welfare gives individuals an incentive to stay at home - CORRECT ANSWERS c.
time and funds are scarce
When households and businesses interact in resource markets money
a. is not exchanged
b. is flowing toward businesses
c. is flowing toward households
d. is not used at all
e. is flowing to both businesses and households - CORRECT ANSWERS c. is flowing
toward households
When demand increases,
AND ANSWERS GRADED A LATEST
VERSION
In a competitive market, excess demand for a good exists whenever....?
a. resources are scarce
b. the current price is below the equilibrium price
c. the current price is above the equilibrium price
d. sellers are subject to the constraints imposed by input prices and technology e. the
quantity supplied at the current price exceeds the quantity demanded - CORRECT
ANSWERS b. the current price is below the equilibrium price
Which of the following is an example of a stock variable?
a. The amount of cereal a person buys each week
b. The amount of cereal a child consumes each month
c. The amount of cereal produced each day
d. The amount of cereal in a person's pantry
e. None of these are stock variables - CORRECT ANSWERS d. The amount of cereal
in a person's pantry
Economics is...?
a. exclusively the study of business firms
b. applicable only when scarcity is not a problem
c. exclusively the study of the markets for stocks and bonds
d. fundamentally the same as sociology
e. the study of choice under conditions of scarcity - CORRECT ANSWERS e. the
study of choice under conditions of scarcity
Complementary goods...
a. do not adhere to the law of demand
b. are usually used in conjunction with each other
c. are usually used in place of one another
d. are goods whose demand rises as incomes rise e. are goods whose demand falls as
wealth falls - CORRECT ANSWERS b. are usually used in conjunction with each
other
If Greg uses a special glue to make model planes that he sells and the price of his
model planes increases, then one would expect that the equilibrium price of the special
glue would _______ and the equilibrium quantity would _________.
a. increase; increase
b. decrease; decrease
,c. increase; decrease
d. decrease; increase
e. increase; indeterminant - CORRECT ANSWERS a. increase; increase
Positive economics deals with...
a. opinions that affirm economists' theories
b. statements of fact
c. practical ways of improving people's self-esteem by making money
d. statements about the way things ought to be
e. theories about improving people's self-esteem - CORRECT ANSWERS b.
statements of fact
Microeconomics....
a. is purely theoretical and has little value in explaining real-world phenomena b.
focuses on what is happening in the economy as a whole
c. addresses scarcity from a global perspective
d. examines how individuals, households, and firms make economic decisions
e. answers the fundamental economic questions of how, when, where, and why -
CORRECT ANSWERS d. examines how individuals, households, and firms make
economic decisions
The demand curve for dolls shows the quantity of dolls demanded
a. at each level of income
b. at the equilibrium price for dolls
c. by U.S. consumers
d. by suppliers of those dolls
e. at each possible price of dolls - CORRECT ANSWERS e. at each possible price of
dolls
According to the law of demand,
a. there is a positive relationship between quantity demanded and price
b. as the price rises, demand will shift to the right
c. as the price rises, consumers will continue to purchase the same quantity of the good
d. as the price rises, demand will shift to the left
e. there is a negative relationship between quantity demanded and price - CORRECT
ANSWERS e. there is a negative relationship between quantity demanded and price
Even though households may have unlimited wants, they have to allocate their
spending carefully because they
a. do not want their credit card bills to be too high
b. worry about their taxes
c. have limited intelligence
d. have limited incomes
e. basically want to become wealthy - CORRECT ANSWERS d. have limited incomes
An entrepreneur is best described as
, a. someone that is hired to work in a firm
b. someone who creates human capital
c. someone with the ability to combine other resources in a productive enterprise
d. anyone who owns productive enterprise
e. anyone who produces long-lived physical capital - CORRECT ANSWERS c.
someone with the ability to combine other resources in a productive enterprise
The overall performance of the economic system as a whole is the focus of
a. international finance
b. labor economics
c. microeconomics
d. macroeconomics
e. public economics - CORRECT ANSWERS d. macroeconomics
Microeconomics analyzes individual parts of the economy rather than broad economic
aggregates.
a. True
b. False - CORRECT ANSWERS a. True
Suppose that the Council of Economic Advisers tells the President that "the
unemployment rate is 4 percent." The President responds, "That rate is still too high."
The President's statement is
a. a normative statement
b. a positive statement
c. empirically verifiable by checking economic data
d. an indisputable statistical fact
e. an incorrect positive statement - CORRECT ANSWERS a. a normative statement
Individuals face opportunity costs because
a. the minimum wage is too low
b. technology is improving too quickly
c. time and funds are scarce
d. government cutbacks are widespread, except possibly among society's most affluent
households
e. welfare gives individuals an incentive to stay at home - CORRECT ANSWERS c.
time and funds are scarce
When households and businesses interact in resource markets money
a. is not exchanged
b. is flowing toward businesses
c. is flowing toward households
d. is not used at all
e. is flowing to both businesses and households - CORRECT ANSWERS c. is flowing
toward households
When demand increases,
