ECON 2 LATEST 2025 EXAM WITH
MULTIPLE QUESTIONS AND
CORRECT ANSWERS ALREADY
GRADED A+, Exams of Business
Ethics[FULL EXAM]
If the government decided to legalize the purchase and sale of
marijuana, the equilibrium quantity would _________ and the price
would ________ if the supply of marijuana increased by _______ than
the demand for marijuana increased. - ANSWER >>>>>Rise; rise; less
if a college sets its tuition ____ below the equilibrium tuition, then it
will have to use some form of nonprice rationing device to determine
who will be accepted for admission to the college - ANSWER
>>>>>Below
If the quantity demanded of medical care is higher at a zero price than
at some positive price, then it follows that the demand for the specific
items that make up health care will be higher (than it would be if the
quantity demanded of medical care were lower) - ANSWER >>>>>True
The space on the freeway is fixed at any instant of time. A supply curve
that shows this is: - ANSWER >>>>>Perfect vertical
In a given community, if the government builds more freeways, then
the supply curve for freeway space shifts rightward and the demand
curve for freeway space shifts leftward. - ANSWER >>>>>False
,The main different between the short run and the long run is that -
ANSWER >>>>>in the short run, one or more inputs are fixed
The demand for seats in 10 a.m. classes at the university is higher than
the demand for seats in 8 a.m. classes. the supply is fixed. If the
university can only charge a single price and wished to maximize the
total number of seats purchased during the day, it should set the price: -
ANSWER >>>>>At equilibrium for 8 a.m. classes.
If the purchased and sale of a currently illegal drug, such as marijuana,
were decriminalized, we would expect: - ANSWER >>>>>An increase in
demand and supply of this drug
The longer the period of time allowed for the producer of a good to
adjust to a change in the price of the good, the ____________ the price
elasticity of supply will be. This statement assumes that the quantity
supplied __________ be altered with time. - ANSWER >>>>>More
elastic; can
if the demand for a good is unit elastic then, - ANSWER >>>>>The
percentage change in quantity demanded is equal to the percentage
change in price.
At the price of a good falls from $5 to $3, the quantity supplied of good
falls from 400 units to 300 units. Price elasticity of supply is: - ANSWER
>>>>>0.57
A normal good is: - ANSWER >>>>>a good for which the demand rises
as income rises
,The producer of X is contemplating a price change and has asked for
your advice. After some empirical investigation, you conclude that the
price elasticity of demand for X is 0.75. You advice to the producer is to:
- ANSWER >>>>>Increase price to raise total revenue.
Cross elasticity of demand measures the responsiveness of changes in
the quantity _____ of one good to changes in _____ - ANSWER
>>>>>Demanded; the price of the another good.
Airlines that try to lower fares to increase revenue believe the demand
for airline service is: - ANSWER >>>>>Price elastic
Which of the following statements is false? - ANSWER >>>>>If total
utility rises, so much marginal utility and if If total utility falls, so much
total utility
Indifference curves are convex to the origin if: - ANSWER >>>>>Both "a
person's marginal rate of substitution declines as he she consumes
more of a good," and the "law of diminishing marginal utility holds" are
correct
The marginal rate of substitutions is illustrated by the - ANSWER
>>>>>Slope of the indifference curve
If a person's income and the price of both goods all rise by the same
percentage, then her budget constraint: - ANSWER >>>>>Move
outward away from the origin, and its slope remains the same
, The diamond-water paradox holds that often things that have high ____
have a ____ price and things that have a low ____ have a ____ price -
ANSWER >>>>>Value in use; low; value in use; high
There is a link between production and cost. We know this because: -
ANSWER >>>>>What happens to MPP directs what happens to MC
If the owners of a firms earn accounting profit, it follows that - ANSWER
>>>>>none of these ANSWER s is correct
If the marginal cost curve for a firm first declines and then rises, it
follows that the MPP of the variable input: - ANSWER >>>>>first rises
and then declines.
Working alone, a person who shirks receives ____ the benefits of
shirking and pays ____ the costs of shirking. - ANSWER >>>>>all; all
Marginal cost in the change in - ANSWER >>>>>total cost that results
from a change in output and total variable cost that results from a
change in output
Diseconomies of scales are said to exit wen inputs are increased by
some percentage and output increases by a(n) ____ percentage, causing
unit costs to ____ - ANSWER >>>>>smaller; rise
If the government sets out to make home buying easier for more people
by forcing lenders to accept down payments and interest rates, the
result will likely be in housing prices. - ANSWER >>>>>If the
government sets out to make home buying easier for more people by
MULTIPLE QUESTIONS AND
CORRECT ANSWERS ALREADY
GRADED A+, Exams of Business
Ethics[FULL EXAM]
If the government decided to legalize the purchase and sale of
marijuana, the equilibrium quantity would _________ and the price
would ________ if the supply of marijuana increased by _______ than
the demand for marijuana increased. - ANSWER >>>>>Rise; rise; less
if a college sets its tuition ____ below the equilibrium tuition, then it
will have to use some form of nonprice rationing device to determine
who will be accepted for admission to the college - ANSWER
>>>>>Below
If the quantity demanded of medical care is higher at a zero price than
at some positive price, then it follows that the demand for the specific
items that make up health care will be higher (than it would be if the
quantity demanded of medical care were lower) - ANSWER >>>>>True
The space on the freeway is fixed at any instant of time. A supply curve
that shows this is: - ANSWER >>>>>Perfect vertical
In a given community, if the government builds more freeways, then
the supply curve for freeway space shifts rightward and the demand
curve for freeway space shifts leftward. - ANSWER >>>>>False
,The main different between the short run and the long run is that -
ANSWER >>>>>in the short run, one or more inputs are fixed
The demand for seats in 10 a.m. classes at the university is higher than
the demand for seats in 8 a.m. classes. the supply is fixed. If the
university can only charge a single price and wished to maximize the
total number of seats purchased during the day, it should set the price: -
ANSWER >>>>>At equilibrium for 8 a.m. classes.
If the purchased and sale of a currently illegal drug, such as marijuana,
were decriminalized, we would expect: - ANSWER >>>>>An increase in
demand and supply of this drug
The longer the period of time allowed for the producer of a good to
adjust to a change in the price of the good, the ____________ the price
elasticity of supply will be. This statement assumes that the quantity
supplied __________ be altered with time. - ANSWER >>>>>More
elastic; can
if the demand for a good is unit elastic then, - ANSWER >>>>>The
percentage change in quantity demanded is equal to the percentage
change in price.
At the price of a good falls from $5 to $3, the quantity supplied of good
falls from 400 units to 300 units. Price elasticity of supply is: - ANSWER
>>>>>0.57
A normal good is: - ANSWER >>>>>a good for which the demand rises
as income rises
,The producer of X is contemplating a price change and has asked for
your advice. After some empirical investigation, you conclude that the
price elasticity of demand for X is 0.75. You advice to the producer is to:
- ANSWER >>>>>Increase price to raise total revenue.
Cross elasticity of demand measures the responsiveness of changes in
the quantity _____ of one good to changes in _____ - ANSWER
>>>>>Demanded; the price of the another good.
Airlines that try to lower fares to increase revenue believe the demand
for airline service is: - ANSWER >>>>>Price elastic
Which of the following statements is false? - ANSWER >>>>>If total
utility rises, so much marginal utility and if If total utility falls, so much
total utility
Indifference curves are convex to the origin if: - ANSWER >>>>>Both "a
person's marginal rate of substitution declines as he she consumes
more of a good," and the "law of diminishing marginal utility holds" are
correct
The marginal rate of substitutions is illustrated by the - ANSWER
>>>>>Slope of the indifference curve
If a person's income and the price of both goods all rise by the same
percentage, then her budget constraint: - ANSWER >>>>>Move
outward away from the origin, and its slope remains the same
, The diamond-water paradox holds that often things that have high ____
have a ____ price and things that have a low ____ have a ____ price -
ANSWER >>>>>Value in use; low; value in use; high
There is a link between production and cost. We know this because: -
ANSWER >>>>>What happens to MPP directs what happens to MC
If the owners of a firms earn accounting profit, it follows that - ANSWER
>>>>>none of these ANSWER s is correct
If the marginal cost curve for a firm first declines and then rises, it
follows that the MPP of the variable input: - ANSWER >>>>>first rises
and then declines.
Working alone, a person who shirks receives ____ the benefits of
shirking and pays ____ the costs of shirking. - ANSWER >>>>>all; all
Marginal cost in the change in - ANSWER >>>>>total cost that results
from a change in output and total variable cost that results from a
change in output
Diseconomies of scales are said to exit wen inputs are increased by
some percentage and output increases by a(n) ____ percentage, causing
unit costs to ____ - ANSWER >>>>>smaller; rise
If the government sets out to make home buying easier for more people
by forcing lenders to accept down payments and interest rates, the
result will likely be in housing prices. - ANSWER >>>>>If the
government sets out to make home buying easier for more people by
