STUDENTS SUCCESS
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
ECS1501 ECONOMICS IA 1 SEMESTER 1-2 2024/25 - DISTINCTION
GUARANTEED 100%
Because of scarcity,
ans:> we must sacrifice something of value to obtain more of any good
or service we desire
Which of the following can increase the opportunity cost of attending
college for students?
ans:> An increase in wages paid to workers without college degrees
The table below shows how the marginal benefit of pizza dinners varies
with the number consumed per month for Ralph. Dinners per Month
Marginal Benefit 1 $8.00 2 $6.00 3 $4.00 4 $2.00 Suppose the price per
pizza dinner is $8.99 and accurately reflects the marginal cost of the
dinners to Ralph. Assuming that Ralph is rational,
ans:> he will not consume any pizza dinners this month.
Which of the following is an example of capital?
ans:> an oil tanker used by a petroleum company, an oven used by a
pizza parlor, a delivery truck, a shovel used by a farmer
Which of the following is assumed when constructing a production
possibilities curve?
ans:> The quantity of economic resources available during the year is
fixed.
Suppose an economy produces only pizza and jeans. If some resources
are specialized in the production of either pizzas or jeans,
ans:> the opportunity cost of additional units of pizza will increase as
more pizza is produced.
,Suppose a new government provision is enacted in the U.S. that
increases government spending of health benefits, providing tax-
financed, long-term nursing home care to the growing population of
people over the age of 65. If the U.S. is experiencing productive
efficiency, the new benefits
ans:> can be provided without any sacrifice of other goods and services
will involve sacrifice of other goods and services
will require a reallocation of resources from the production of other
goods and services to the production of health services for the elderly
** Both b and c
Suppose a nation produces only two goods--bread and computers.
Currently, resources are being used to produce 10,000 computers and 5
million loaves of bread each year. If productive efficiency prevails in this
nation this year,
ans:> it is possible to increase the production of bread to 6 million loaves
per year, only by reducing the number of computers produced.
An increase in the size of the economy's labor force is illustrated by a
graph
ans:> that shows two arrows moving to the right
In recent years, production possibilities curve of China has been shifting
out at a faster rate than any other nation in the world. Which of the
following can best explain China's rapid economic growth?
ans:> A high rate of investment.
An individual's ability to increase the consumption of two goods
___________ when the price of one or both goods ___________.
ans:> decreases, increases
Suppose you spend all your income on compact discs and hamburger
dinners. The price of a compact disc is $10, and the price of a
hamburger dinner is $5. It follows that the opportunity cost of a compact
disc is
ans:> two hamburger dinners.
Paola receives an allowance of $300 per month from her father, which
she uses to buy gasoline for her car and to buy cassette tapes. Suppose
the price of gasoline doubles while the price of cassette tapes and her
allowance remain the same. This implies that
ans:> the opportunity cost of cassette tapes for Paola will decrease.
,The U.S. Treasury is expected to decrease its demand for loanable
funds. Other things being equal, this implies that
ans:> interest rates will fall.
Suppose the market equilibrium price of lumber increases while, at the
same time, the market equilibrium quantity sold declines. Which of the
following is the most likely explanation for the change in the market
equilibrium price and quantity?
ans:> A decrease in the supply of lumber.
Before the November 13, 1993, Florida State vs. Notre Dame football
game, the price of a ticket to the game was below the equilibrium price.
A price below the market equilibrium price results in
ans:> a shortage of tickets.
If price in the market for dinosaur bones is below its equilibrium level,
ans:> price will increase and quantity demanded will decrease.
A recession hits the U.S., and there's a decrease in the demand for
labor. Assuming nothing else changes in labor markets and the labor
market achieves a new equilibrium in response to the decrease in
demand,
ans:> there will be a surplus of workers.
A rent control law is passed in the city of Portland. If the equilibrium rent
for a one-bedroom apartment is $550 per month,
ans:> there will be a shortage of one-bedroom apartments if the rent
ceiling is below $550 per month.
As a result of a government guarantee of $2.50 per gallon for milk--no
matter how much milk is produced--more farmers enter this market until
the new supply curve equals S2. As a result of this development,
(a) the milk surplus will increase to 7.6 billion gallons.
(b) taxpayers will pay an extra $6.25 billion to dairy farmers.
(c) the real equilibrium price of milk will be $.63.
(d) All of the above.
(e) (a) and (c) only.
ans:> All of the above.
The graph shows the demand for and supply of labor hours by teenagers
in the U.S. If the minimum wage is increased from $4.25 to $6.00 per
hour, the result will be
, ans:> an increase in labor hours supplied by teenagers, along with a
decrease in labor hours demanded by employers of teenagers.
The price elasticity of demand for Bart Simpson watches is -3. A 5%
increase in the price of the watches will cause the quantity demanded to
ans:> decrease by 15%.
The more substitutes there are for an item,
ans:> the more elastic the demand will be.
If the price elasticity of demand for car tags is zero for all prices, the
demand curve is
ans:> vertical.
The income elasticity of demand for furniture is 4. It follows that, other
things being equal, a 7% increase in consumer income will
ans:> increase the quantity of furniture purchased by 28%.
The cross-elasticity of demand between JVC VCRs and the price of
Sony VCRs is likely to be
ans:> a positive number.
A per-unit tax will be paid entirely by consumers if (a) demand is
perfectly inelastic.
(b) demand is elastic.
(c) supply is perfectly elastic.
(d) Either (a) or (c).
ans:> Either (a) or (c).
If the supply of steel is perfectly elastic, an increase in the demand for
steel will
ans:> increase the quantity of steel supplied, but have no effect on the
price.
The portion of corporate profits that's passed on to stockholders is called
ans:> dividends.
Implicit costs are equal to
ans:> opportunity costs of owner-supplied resources.
John is president of a small corporation. At the end of the year, his
accountant calculates the following costs attributable to the business.
Payroll for wages and salaries: $100,000
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
ECS1501 ECONOMICS IA 1 SEMESTER 1-2 2024/25 - DISTINCTION
GUARANTEED 100%
Because of scarcity,
ans:> we must sacrifice something of value to obtain more of any good
or service we desire
Which of the following can increase the opportunity cost of attending
college for students?
ans:> An increase in wages paid to workers without college degrees
The table below shows how the marginal benefit of pizza dinners varies
with the number consumed per month for Ralph. Dinners per Month
Marginal Benefit 1 $8.00 2 $6.00 3 $4.00 4 $2.00 Suppose the price per
pizza dinner is $8.99 and accurately reflects the marginal cost of the
dinners to Ralph. Assuming that Ralph is rational,
ans:> he will not consume any pizza dinners this month.
Which of the following is an example of capital?
ans:> an oil tanker used by a petroleum company, an oven used by a
pizza parlor, a delivery truck, a shovel used by a farmer
Which of the following is assumed when constructing a production
possibilities curve?
ans:> The quantity of economic resources available during the year is
fixed.
Suppose an economy produces only pizza and jeans. If some resources
are specialized in the production of either pizzas or jeans,
ans:> the opportunity cost of additional units of pizza will increase as
more pizza is produced.
,Suppose a new government provision is enacted in the U.S. that
increases government spending of health benefits, providing tax-
financed, long-term nursing home care to the growing population of
people over the age of 65. If the U.S. is experiencing productive
efficiency, the new benefits
ans:> can be provided without any sacrifice of other goods and services
will involve sacrifice of other goods and services
will require a reallocation of resources from the production of other
goods and services to the production of health services for the elderly
** Both b and c
Suppose a nation produces only two goods--bread and computers.
Currently, resources are being used to produce 10,000 computers and 5
million loaves of bread each year. If productive efficiency prevails in this
nation this year,
ans:> it is possible to increase the production of bread to 6 million loaves
per year, only by reducing the number of computers produced.
An increase in the size of the economy's labor force is illustrated by a
graph
ans:> that shows two arrows moving to the right
In recent years, production possibilities curve of China has been shifting
out at a faster rate than any other nation in the world. Which of the
following can best explain China's rapid economic growth?
ans:> A high rate of investment.
An individual's ability to increase the consumption of two goods
___________ when the price of one or both goods ___________.
ans:> decreases, increases
Suppose you spend all your income on compact discs and hamburger
dinners. The price of a compact disc is $10, and the price of a
hamburger dinner is $5. It follows that the opportunity cost of a compact
disc is
ans:> two hamburger dinners.
Paola receives an allowance of $300 per month from her father, which
she uses to buy gasoline for her car and to buy cassette tapes. Suppose
the price of gasoline doubles while the price of cassette tapes and her
allowance remain the same. This implies that
ans:> the opportunity cost of cassette tapes for Paola will decrease.
,The U.S. Treasury is expected to decrease its demand for loanable
funds. Other things being equal, this implies that
ans:> interest rates will fall.
Suppose the market equilibrium price of lumber increases while, at the
same time, the market equilibrium quantity sold declines. Which of the
following is the most likely explanation for the change in the market
equilibrium price and quantity?
ans:> A decrease in the supply of lumber.
Before the November 13, 1993, Florida State vs. Notre Dame football
game, the price of a ticket to the game was below the equilibrium price.
A price below the market equilibrium price results in
ans:> a shortage of tickets.
If price in the market for dinosaur bones is below its equilibrium level,
ans:> price will increase and quantity demanded will decrease.
A recession hits the U.S., and there's a decrease in the demand for
labor. Assuming nothing else changes in labor markets and the labor
market achieves a new equilibrium in response to the decrease in
demand,
ans:> there will be a surplus of workers.
A rent control law is passed in the city of Portland. If the equilibrium rent
for a one-bedroom apartment is $550 per month,
ans:> there will be a shortage of one-bedroom apartments if the rent
ceiling is below $550 per month.
As a result of a government guarantee of $2.50 per gallon for milk--no
matter how much milk is produced--more farmers enter this market until
the new supply curve equals S2. As a result of this development,
(a) the milk surplus will increase to 7.6 billion gallons.
(b) taxpayers will pay an extra $6.25 billion to dairy farmers.
(c) the real equilibrium price of milk will be $.63.
(d) All of the above.
(e) (a) and (c) only.
ans:> All of the above.
The graph shows the demand for and supply of labor hours by teenagers
in the U.S. If the minimum wage is increased from $4.25 to $6.00 per
hour, the result will be
, ans:> an increase in labor hours supplied by teenagers, along with a
decrease in labor hours demanded by employers of teenagers.
The price elasticity of demand for Bart Simpson watches is -3. A 5%
increase in the price of the watches will cause the quantity demanded to
ans:> decrease by 15%.
The more substitutes there are for an item,
ans:> the more elastic the demand will be.
If the price elasticity of demand for car tags is zero for all prices, the
demand curve is
ans:> vertical.
The income elasticity of demand for furniture is 4. It follows that, other
things being equal, a 7% increase in consumer income will
ans:> increase the quantity of furniture purchased by 28%.
The cross-elasticity of demand between JVC VCRs and the price of
Sony VCRs is likely to be
ans:> a positive number.
A per-unit tax will be paid entirely by consumers if (a) demand is
perfectly inelastic.
(b) demand is elastic.
(c) supply is perfectly elastic.
(d) Either (a) or (c).
ans:> Either (a) or (c).
If the supply of steel is perfectly elastic, an increase in the demand for
steel will
ans:> increase the quantity of steel supplied, but have no effect on the
price.
The portion of corporate profits that's passed on to stockholders is called
ans:> dividends.
Implicit costs are equal to
ans:> opportunity costs of owner-supplied resources.
John is president of a small corporation. At the end of the year, his
accountant calculates the following costs attributable to the business.
Payroll for wages and salaries: $100,000
