Econ 201 Exam questions and
answers well graded A+
According to Dr. Watt’s summary of marginal value theory, the value of a good is based on: -
ANS✅✅the benefit/ usefulness of the good in the combination with its scarcity.
If a product is fungible, that means that units of the product are completely interchangeable. -
ANS✅✅true
the graph of the the marginal value curve of a good can be interpreted to show both the good's total
value and its market value or price. - ANS✅✅true
economics derives from a greek term which referred to household management. - ANS✅✅true
which term applies to knowledge that can be acquired and confirmed by observation -
ANS✅✅empirical
which product is most likely to have the most elastic demand curve? - ANS✅✅little teaser $5
pepperino pizza
which best explains why supply curves usually slope towards? - ANS✅✅cost rise with increased
production.
If the price of orange juice rises 10%, and quantity of OJ consumed declines by 50% per week, OJ
demand is - ANS✅✅elastic
what is equal at equilibrium? - ANS✅✅quantity supplied and quantity demanded.
when a business sets prices below equilibrium, it often finds that it can't keep products in stock,. to
correct this situation, the company will sooner or later raise its prices. this situation is known as? -
ANS✅✅shortage
A consumer subsidy can be defined as: - ANS✅✅a grant of money from government to consumers
of a good or service
, Consumer subsidies shift the demand curve to the right , leading to higher prices and higher
quantities for the subsidized product. - ANS✅✅1:demand
2:right
3:higher
4:higher
Consumers using government subsidies to purchase products or services for themselves represents
which kind of spending: - ANS✅✅category 3
From 1996 to 2016, college tuition in the US increased by roughly four times the rate of all consumer
goods prices. - ANS✅✅true
Other than consumer subsidies, what factors contribute to persistent increases in prices of goods or
services? - ANS✅✅A) labor-intensive production processes
B) Back of competition
C) high fixed costs in the production process
D) all of these
D) is correct
lecture 37
Economists always ask: - ANS✅✅compared to what?
What best defines the term "benevolent despot?" - ANS✅✅an all-powerful individual acting in the
public interest
What element do public choice theorists put at the "center stage" of their analysis? - ANS✅✅the
democratic electoral process
Public choice analysis begins with an assumption that people in government are acting strictly in
accordance with the public's interest, not their own self-interest. - ANS✅✅False
answers well graded A+
According to Dr. Watt’s summary of marginal value theory, the value of a good is based on: -
ANS✅✅the benefit/ usefulness of the good in the combination with its scarcity.
If a product is fungible, that means that units of the product are completely interchangeable. -
ANS✅✅true
the graph of the the marginal value curve of a good can be interpreted to show both the good's total
value and its market value or price. - ANS✅✅true
economics derives from a greek term which referred to household management. - ANS✅✅true
which term applies to knowledge that can be acquired and confirmed by observation -
ANS✅✅empirical
which product is most likely to have the most elastic demand curve? - ANS✅✅little teaser $5
pepperino pizza
which best explains why supply curves usually slope towards? - ANS✅✅cost rise with increased
production.
If the price of orange juice rises 10%, and quantity of OJ consumed declines by 50% per week, OJ
demand is - ANS✅✅elastic
what is equal at equilibrium? - ANS✅✅quantity supplied and quantity demanded.
when a business sets prices below equilibrium, it often finds that it can't keep products in stock,. to
correct this situation, the company will sooner or later raise its prices. this situation is known as? -
ANS✅✅shortage
A consumer subsidy can be defined as: - ANS✅✅a grant of money from government to consumers
of a good or service
, Consumer subsidies shift the demand curve to the right , leading to higher prices and higher
quantities for the subsidized product. - ANS✅✅1:demand
2:right
3:higher
4:higher
Consumers using government subsidies to purchase products or services for themselves represents
which kind of spending: - ANS✅✅category 3
From 1996 to 2016, college tuition in the US increased by roughly four times the rate of all consumer
goods prices. - ANS✅✅true
Other than consumer subsidies, what factors contribute to persistent increases in prices of goods or
services? - ANS✅✅A) labor-intensive production processes
B) Back of competition
C) high fixed costs in the production process
D) all of these
D) is correct
lecture 37
Economists always ask: - ANS✅✅compared to what?
What best defines the term "benevolent despot?" - ANS✅✅an all-powerful individual acting in the
public interest
What element do public choice theorists put at the "center stage" of their analysis? - ANS✅✅the
democratic electoral process
Public choice analysis begins with an assumption that people in government are acting strictly in
accordance with the public's interest, not their own self-interest. - ANS✅✅False
