ECON 101 Midterm Exam 2024 Fully Scored 100%;AMU

ECON 101 Midterm Exam 2024 Fully Scored 100%;AMU Midterm - Results Attempt 1 of 1 Written Mar 26, 2024 2:10 PM - Mar 26, 2024 2:20 PM Attempt Score 100 / 100 - 100 % Overall Grade (Highest Attempt) 100 / 100 - 100 % Question 1 7 / 7 points Economics is the study of: increasing the level of productive resources so there is maximum output in society. increasing the level of productive resources so there is a minimum level of income. the efficient use of scarce resources paid for at the minimum level of cost to consumers and businesses. Question 2 7 / 7 points Which of the following is not a central focus of the "economic perspective"? Scarcity and choice. Purposeful behavior. Marginal analysis. Question 3 7 / 7 points The satisfaction or pleasure one gets from consuming a good or service is: price. consumption. preferences. Question 4 7 / 7 points The private ownership of property resources and use of prices to direct and coordinate economic activity is characteristic of: a command system. communism. socialism. Question 5 7 / 7 points Which statement best describes a capitalist economy? The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government. The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets. The production and allocation of goods and services is determined primarily through government. Question 6 7 / 7 points Capitalism is an economic system that: produces more capital goods than consumer goods. produces more consumer goods than capital goods. gives the government the right to tax individuals and corporations. Question 7 7 / 7 points In a market system, well-defined property rights are important because they: reduce unnecessary investment. limit destructive economic growth. create economic problems. Question 8 7 / 7 points If two goods are complements: they are consumed independently. an increase in the price of one will increase the demand for the other. they are necessarily inferior goods. Question 9 6 / 6 points When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is: inelastic. cross-elastic. unitary elastic. Question 10 6 / 6 points Demand can be said to be inelastic when: an increase in price results in a reduction in total revenue. a reduction in price results in an increase in total revenue. the elasticity coefficient exceeds one. Question 11 4 / 4 points Economic growth is shown by a shift of the production possibilities curve outward and to the right. False Question 12 4 / 4 points The four factors of production are land, labor, capital, and government services. True Question 13 4 / 4 points If demand increases and supply simultaneously decreases, equilibrium price will rise. False Question 14 4 / 4 points Property rights have a positive effect in a market economy because they encourage owners to maintain their property. False Question 15 4 / 4 points In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue. False Question 16 4 / 4 points Price elasticity of supply decreases the longer the time period. True Question 17 4 / 4 points Toothpaste and toothbrushes are substitute goods. True Question 18 4 / 4 points A government-set price ceiling will lower equilibrium price and quantity in a market. True Done