ECON 151 Quizzes questions and
answers Rated A+
The price of cotton rises. What happens in the market for cotton shirts?
A. The equilibrium price falls and the equilibrium quantity rises.
B. The equilibrium price rises and the equilibrium quantity falls.
C. The equilibrium price and quantity rise.
D. The equilibrium price and quantity fall. - answersB
Scarcity is defined as?
A. The reward or penalty that encourages or discourages an action
B. A previously incurred and irreversible cost
C. Pleasure you get from dressing up on Halloween
D. Inability to satisfy all our wants - answersD
Whenever a choice is made
A. the cost of that choice could be referred to as opportunity cost
B.the cost is easy to measure in dollar terms
C. a free good must be involved
D. scarcity is not a problem - answersA
High school athletes who skip college to become professional athletes
A. obviously do not understand the value of a college education
B. usually do so because they cannot get into college
C. understand that the opportunity cost of attending college is very high
D. are not making a rational decision since the marginal benefits of college outweigh the
marginal costs of college for high school athletes - answersC
The relationship between the price of a good and the quantity people are willing and
able to purchase is:
A. demand
B. supply
C. equilibrium
D. disequilibrium - answersA
Which of the following would shift the demand curve for new textbooks to the right?
A. A decrease in the price of paper.
B. A fall in the price of used textbooks.
C. An increase in college enrollments.
D. A fall in the price of new textbooks. - answersC
,A decrease in the price of milk (an ingredient of ice cream) will result in a(n):
A. shift of the supply curve of ice cream to the left.
B. shift of the supply curve of ice cream to the right.
C. lower price of ice cream, and thus an increase in the demand for ice cream.
D. increase in the demand for ice cream and a decrease in the supply of milk. -
answersB
If Dave can produce 200 large pizzas per hour and 0 medium pizzas per hour or 0 large
pizzas per hour and 100 medium pizzas per hour and faces a linear production
possibilities curve for his store, the opportunity cost of producing an additional medium
pizza is ______ large pizzas.
A. 0.5
B. 2
C. 100
D. 200 - answersB
According to the marginal decision rule, if marginal benefit:
A. exceeds marginal cost, an activity should be reduced.
B. is less than marginal cost, an activity should be reduced.
C. is equal to marginal cost, an activity should be reduced.
D. exceeds marginal cost, net benefit is maximized. - answersB
The price of eggs might go up because:
A. of an increase in the price of bacon.
B. the supply of eggs increased.
C. the price of chicken feed increased.
D. the demand for eggs fell. - answersC
Net benefit can be maximized by equating:
A. total benefit to total cost.
B. marginal benefit to marginal cost.
C. marginal benefit to total cost.
D. total benefit to marginal cost. - answersB
Mike really likes hot-dogs. When hot-dogs are on sale at $0.25, mike buys 12 hot-dogs
for the week. When the price goes up to $0.50, mike buys 8 hot dogs. What is the slope
of mikes demand curve:
A. -0.25
B. -4
C. -0.0625
D. 1 - answersC
If a buyer's willingness to pay for a new Honda is $20,000 and she is able to actually
buy it for $18,000, her consumer surplus is
A. $0
B. $2,000
, C. $18,000
D. $20,000 - answersB
An increase in demand, all other things unchanged, will result in a(n) ________ in the
equilibrium price and a(n) ________ in the equilibrium quantity.
A. increase; increase
B. decrease; decrease
C. decrease; increase
D. increase; decrease - answersA
Given the demand equation P=10-2Q, if 4 units of a good are consumed what is the
consumer surplus?
A. $2
B. $4
C. $8
D. $16 - answersD
There is equilibrium in the market when:
A. supply and demand are equal
B. price is established where the supply and the demand curve intersect
C. all that suppliers wish to sell and demanders wish to buy at the given price are the
same
D. all of the above are correct - answersD
Demand is best defined as the:
A. amount of a commodity that buyers would be willing and able to purchase at a
specific price.
B. price that buyers would be willing and able to pay for a specific quantity of a good.
C. relationship between the price of a good and the quantity people are able to
purchase, all other things unchanged.
D. relationship between the price of a good and the quantity people are willing and able
to purchase, all other things unchanged. - answersD
If steak and potatoes are complements, when the price of steak goes up, the demand
curve for potatoes:
A. shifts to the right
B. shifts to the left
C. stays the same
D. shifts to the right and then moves right back - answersB
Which of the following is an example of an intermediate good or service?
A. The purchase of a new yacht by a boating enthusiast
B. The purchase of lumber by a construction company
C. The salaries paid to military personnel
D. The salary earned by a construction worker - answersB
answers Rated A+
The price of cotton rises. What happens in the market for cotton shirts?
A. The equilibrium price falls and the equilibrium quantity rises.
B. The equilibrium price rises and the equilibrium quantity falls.
C. The equilibrium price and quantity rise.
D. The equilibrium price and quantity fall. - answersB
Scarcity is defined as?
A. The reward or penalty that encourages or discourages an action
B. A previously incurred and irreversible cost
C. Pleasure you get from dressing up on Halloween
D. Inability to satisfy all our wants - answersD
Whenever a choice is made
A. the cost of that choice could be referred to as opportunity cost
B.the cost is easy to measure in dollar terms
C. a free good must be involved
D. scarcity is not a problem - answersA
High school athletes who skip college to become professional athletes
A. obviously do not understand the value of a college education
B. usually do so because they cannot get into college
C. understand that the opportunity cost of attending college is very high
D. are not making a rational decision since the marginal benefits of college outweigh the
marginal costs of college for high school athletes - answersC
The relationship between the price of a good and the quantity people are willing and
able to purchase is:
A. demand
B. supply
C. equilibrium
D. disequilibrium - answersA
Which of the following would shift the demand curve for new textbooks to the right?
A. A decrease in the price of paper.
B. A fall in the price of used textbooks.
C. An increase in college enrollments.
D. A fall in the price of new textbooks. - answersC
,A decrease in the price of milk (an ingredient of ice cream) will result in a(n):
A. shift of the supply curve of ice cream to the left.
B. shift of the supply curve of ice cream to the right.
C. lower price of ice cream, and thus an increase in the demand for ice cream.
D. increase in the demand for ice cream and a decrease in the supply of milk. -
answersB
If Dave can produce 200 large pizzas per hour and 0 medium pizzas per hour or 0 large
pizzas per hour and 100 medium pizzas per hour and faces a linear production
possibilities curve for his store, the opportunity cost of producing an additional medium
pizza is ______ large pizzas.
A. 0.5
B. 2
C. 100
D. 200 - answersB
According to the marginal decision rule, if marginal benefit:
A. exceeds marginal cost, an activity should be reduced.
B. is less than marginal cost, an activity should be reduced.
C. is equal to marginal cost, an activity should be reduced.
D. exceeds marginal cost, net benefit is maximized. - answersB
The price of eggs might go up because:
A. of an increase in the price of bacon.
B. the supply of eggs increased.
C. the price of chicken feed increased.
D. the demand for eggs fell. - answersC
Net benefit can be maximized by equating:
A. total benefit to total cost.
B. marginal benefit to marginal cost.
C. marginal benefit to total cost.
D. total benefit to marginal cost. - answersB
Mike really likes hot-dogs. When hot-dogs are on sale at $0.25, mike buys 12 hot-dogs
for the week. When the price goes up to $0.50, mike buys 8 hot dogs. What is the slope
of mikes demand curve:
A. -0.25
B. -4
C. -0.0625
D. 1 - answersC
If a buyer's willingness to pay for a new Honda is $20,000 and she is able to actually
buy it for $18,000, her consumer surplus is
A. $0
B. $2,000
, C. $18,000
D. $20,000 - answersB
An increase in demand, all other things unchanged, will result in a(n) ________ in the
equilibrium price and a(n) ________ in the equilibrium quantity.
A. increase; increase
B. decrease; decrease
C. decrease; increase
D. increase; decrease - answersA
Given the demand equation P=10-2Q, if 4 units of a good are consumed what is the
consumer surplus?
A. $2
B. $4
C. $8
D. $16 - answersD
There is equilibrium in the market when:
A. supply and demand are equal
B. price is established where the supply and the demand curve intersect
C. all that suppliers wish to sell and demanders wish to buy at the given price are the
same
D. all of the above are correct - answersD
Demand is best defined as the:
A. amount of a commodity that buyers would be willing and able to purchase at a
specific price.
B. price that buyers would be willing and able to pay for a specific quantity of a good.
C. relationship between the price of a good and the quantity people are able to
purchase, all other things unchanged.
D. relationship between the price of a good and the quantity people are willing and able
to purchase, all other things unchanged. - answersD
If steak and potatoes are complements, when the price of steak goes up, the demand
curve for potatoes:
A. shifts to the right
B. shifts to the left
C. stays the same
D. shifts to the right and then moves right back - answersB
Which of the following is an example of an intermediate good or service?
A. The purchase of a new yacht by a boating enthusiast
B. The purchase of lumber by a construction company
C. The salaries paid to military personnel
D. The salary earned by a construction worker - answersB
