Gov Econ Assessment 2 Basic
Economic Concepts Microeconomics
Scarcity of what is the basis for economics? - answersresources
Which of the following would be considered a microeconomic area of study? -
answersindividual consumer decisions and types of business organization
The below graph illustrates which of the following? - answersan increase in demand (D)
from D1 to D2
In the following diagram, what is the equilibrium price (Pe)? - answers$5
In the following diagram, a price floor (Pf) would be established: - answersat any price
above $5
The federal minimum wage law is an example of a price floor. Which of the following is
a consequence of the law? - answersthere is a persistent surplus of low-skilled workers
If the price (P) of a good increases by 10% and quantity demanded (Qd) of the good
decreases by 20%, determine the value and interpretation of price elasticity of demand
(Ed). - answersEd = 2, so demand (D) for the good is elastic
Suppose the calculation for cross-price elasticity of demand between two goods (Exy) =
-2.5. What can be concluded about the relationship between these goods? - answersthe
goods are complements
Which of the following is true regarding marginal utility (MU)? - answersmarginal utility
(MU) declines as additional units of a good are consumed
Economic Concepts Microeconomics
Scarcity of what is the basis for economics? - answersresources
Which of the following would be considered a microeconomic area of study? -
answersindividual consumer decisions and types of business organization
The below graph illustrates which of the following? - answersan increase in demand (D)
from D1 to D2
In the following diagram, what is the equilibrium price (Pe)? - answers$5
In the following diagram, a price floor (Pf) would be established: - answersat any price
above $5
The federal minimum wage law is an example of a price floor. Which of the following is
a consequence of the law? - answersthere is a persistent surplus of low-skilled workers
If the price (P) of a good increases by 10% and quantity demanded (Qd) of the good
decreases by 20%, determine the value and interpretation of price elasticity of demand
(Ed). - answersEd = 2, so demand (D) for the good is elastic
Suppose the calculation for cross-price elasticity of demand between two goods (Exy) =
-2.5. What can be concluded about the relationship between these goods? - answersthe
goods are complements
Which of the following is true regarding marginal utility (MU)? - answersmarginal utility
(MU) declines as additional units of a good are consumed
