ECON 2010 EXAM 2- LSU QUESTIONS
AND CORRECT ANSWERS
demand ✅✅CORRECT ANSW-buyers desire and ability for goods
supply ✅✅CORRECT ANSW-sellers ability and desire to make and sell goods
Equilibrium ✅✅CORRECT ANSW-quantity supplied = quantity demanded
surplus ✅✅CORRECT ANSW-quantity demanded < quantity supplied
shortage ✅✅CORRECT ANSW-quantity demanded > quantity supplied
quantity demanded of: increase ✅✅CORRECT ANSW-suppose the price of umbrellas decreases.
everything else held constant, this will cause the ? umbrellas to ?
quantity supplied of: decreased ✅✅CORRECT ANSW-suppose the price of umbrellas decreases.
Everything else held constant this will cause the ? umbrellas to ?
buyers ✅✅CORRECT ANSW-price of X increased
quantity demanded increased
sellers ✅✅CORRECT ANSW-price of X increased
quantity supplied increased
quantity demanded ✅✅CORRECT ANSW-the amount of a good that buyers are willing and able to
purchase
quantity supplied ✅✅CORRECT ANSW-the amount of a good that sellers are willing and able to
sell
good ✅✅CORRECT ANSW-labor (number of workers)
, price ✅✅CORRECT ANSW-wage
buyers ✅✅CORRECT ANSW-employers demand for labor
sellers ✅✅CORRECT ANSW-employees supply labor
total cost ✅✅CORRECT ANSW-fixed cost + variable cost
ex: salary x workers
max profit ✅✅CORRECT ANSW-{QxP}-TC
total revenue ✅✅CORRECT ANSW-Price x Quantity
ex: computers x price
profit ✅✅CORRECT ANSW-total revenue - total cost
increasing wage inequality. ✅✅CORRECT ANSW-in the us there is evidence of
the real wage ✅✅CORRECT ANSW-in the market for labor, the price of labor is
increases; decreases ✅✅CORRECT ANSW-as the real wage decreases, the quantity of labor
demanded ? and the quantity of labor supplied ?
decreases; decreases ✅✅CORRECT ANSW-holding other factors constant, if crude oil prices
decline relative to the prices of other products, then the real wages of workers in oil and natural gas
extraction will ? and employment in these industries will ?
increases; increases ✅✅CORRECT ANSW-holding other factors constant, technological progress ?
the real wage and ? employment
AND CORRECT ANSWERS
demand ✅✅CORRECT ANSW-buyers desire and ability for goods
supply ✅✅CORRECT ANSW-sellers ability and desire to make and sell goods
Equilibrium ✅✅CORRECT ANSW-quantity supplied = quantity demanded
surplus ✅✅CORRECT ANSW-quantity demanded < quantity supplied
shortage ✅✅CORRECT ANSW-quantity demanded > quantity supplied
quantity demanded of: increase ✅✅CORRECT ANSW-suppose the price of umbrellas decreases.
everything else held constant, this will cause the ? umbrellas to ?
quantity supplied of: decreased ✅✅CORRECT ANSW-suppose the price of umbrellas decreases.
Everything else held constant this will cause the ? umbrellas to ?
buyers ✅✅CORRECT ANSW-price of X increased
quantity demanded increased
sellers ✅✅CORRECT ANSW-price of X increased
quantity supplied increased
quantity demanded ✅✅CORRECT ANSW-the amount of a good that buyers are willing and able to
purchase
quantity supplied ✅✅CORRECT ANSW-the amount of a good that sellers are willing and able to
sell
good ✅✅CORRECT ANSW-labor (number of workers)
, price ✅✅CORRECT ANSW-wage
buyers ✅✅CORRECT ANSW-employers demand for labor
sellers ✅✅CORRECT ANSW-employees supply labor
total cost ✅✅CORRECT ANSW-fixed cost + variable cost
ex: salary x workers
max profit ✅✅CORRECT ANSW-{QxP}-TC
total revenue ✅✅CORRECT ANSW-Price x Quantity
ex: computers x price
profit ✅✅CORRECT ANSW-total revenue - total cost
increasing wage inequality. ✅✅CORRECT ANSW-in the us there is evidence of
the real wage ✅✅CORRECT ANSW-in the market for labor, the price of labor is
increases; decreases ✅✅CORRECT ANSW-as the real wage decreases, the quantity of labor
demanded ? and the quantity of labor supplied ?
decreases; decreases ✅✅CORRECT ANSW-holding other factors constant, if crude oil prices
decline relative to the prices of other products, then the real wages of workers in oil and natural gas
extraction will ? and employment in these industries will ?
increases; increases ✅✅CORRECT ANSW-holding other factors constant, technological progress ?
the real wage and ? employment
