STUDENTS SUCCESS
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
EC260 FINAL EXAM WINTER 2024-2025 ACTUAL EXAM COMPLETE -
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz The supply curve
Ans: Represents the quantity supplied at any given price
Quiz Suppose a market with an upward-sloping supply curve were currently at
equilibrium. A rightward shift of the demand curve would case
Ans: An increase in both price and quantity
Quiz consumers and firms are known as price takers only if
Ans: they cannot unilaterally affect the market price
Quiz Which of the following is NOT a characteristic of perfectly competitive markets?
Ans: Products are differentiated.
Quiz Government prohibition of advertising cigarettes on television would most likely
result in
Ans: a leftward shift in the demand curve for cigarettes.
Quiz A leftward shift of the supply curve in a market with a downward-sloping
demand curve will lead to a(n)
Ans: increase in equilibrium price, excess demand at the old price, decrease in
quantity demanded
Quiz A market equilibrium occurs
Ans: through the interaction of self-interested buyers and sellers.
Quiz Profit is
, Ans: the difference between a firm's revenues and its costs.
Quiz Which of the following would be considered part of a firm's strategy?
Ans: Production levels, which inputs to use, sales strategy
Quiz A market
Ans: allows interactions between consumers and firms.
Quiz Economic models are most useful in
Ans: explaining outcomes resulting from management decisions.
Quiz Society faces trade-offs because of
Ans: scarcity.
Quiz If you are using a 95% confidence interval and the absolute value of the t-
statistic is larger than the critical value, then
Ans: we reject the null hypothesis at a 95% confidence level.
Quiz On a linear demand curve, the lower the price
Ans: the less elastic is demand.
Quiz If it is difficult to substitute for a good in the short run, but easy in the long run,
then
Ans: the elasticity of demand is more elastic in the long run
Quiz If the price elasticity of demand for a good is greater than one in absolute value,
economists characterize that demand is
Ans: elastic
Quiz If the demand curve for slices of pizza is given as Q = 300 - 16p, then the point
elasticity of demand when price is $1.50 is
Ans: -0.087
Quiz If the demand curve is given by Q = a + bp, then b is
Ans: the change in quantity demanded if price changes by 1.
Quiz If the price of a slice of pizza rises from $2.50 to $3, and quantity demanded
falls from 10,000 slices to 7,400 slices, using the formula for arc price elasticity, what
is the percentage change in price?
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
EC260 FINAL EXAM WINTER 2024-2025 ACTUAL EXAM COMPLETE -
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz The supply curve
Ans: Represents the quantity supplied at any given price
Quiz Suppose a market with an upward-sloping supply curve were currently at
equilibrium. A rightward shift of the demand curve would case
Ans: An increase in both price and quantity
Quiz consumers and firms are known as price takers only if
Ans: they cannot unilaterally affect the market price
Quiz Which of the following is NOT a characteristic of perfectly competitive markets?
Ans: Products are differentiated.
Quiz Government prohibition of advertising cigarettes on television would most likely
result in
Ans: a leftward shift in the demand curve for cigarettes.
Quiz A leftward shift of the supply curve in a market with a downward-sloping
demand curve will lead to a(n)
Ans: increase in equilibrium price, excess demand at the old price, decrease in
quantity demanded
Quiz A market equilibrium occurs
Ans: through the interaction of self-interested buyers and sellers.
Quiz Profit is
, Ans: the difference between a firm's revenues and its costs.
Quiz Which of the following would be considered part of a firm's strategy?
Ans: Production levels, which inputs to use, sales strategy
Quiz A market
Ans: allows interactions between consumers and firms.
Quiz Economic models are most useful in
Ans: explaining outcomes resulting from management decisions.
Quiz Society faces trade-offs because of
Ans: scarcity.
Quiz If you are using a 95% confidence interval and the absolute value of the t-
statistic is larger than the critical value, then
Ans: we reject the null hypothesis at a 95% confidence level.
Quiz On a linear demand curve, the lower the price
Ans: the less elastic is demand.
Quiz If it is difficult to substitute for a good in the short run, but easy in the long run,
then
Ans: the elasticity of demand is more elastic in the long run
Quiz If the price elasticity of demand for a good is greater than one in absolute value,
economists characterize that demand is
Ans: elastic
Quiz If the demand curve for slices of pizza is given as Q = 300 - 16p, then the point
elasticity of demand when price is $1.50 is
Ans: -0.087
Quiz If the demand curve is given by Q = a + bp, then b is
Ans: the change in quantity demanded if price changes by 1.
Quiz If the price of a slice of pizza rises from $2.50 to $3, and quantity demanded
falls from 10,000 slices to 7,400 slices, using the formula for arc price elasticity, what
is the percentage change in price?
