ECON 202 Ole Miss Hayes Final Newest / ECON 202 Ole Miss Hayes Final
Exam Preparation
ECON 202 OLE MISS HAYES FINAL NEWEST / ECON 202 OLE MISS
HAYES FINAL EXAM PREPARATION /ECON 202 OLE MISS HAYES FINAL
PRACTICE EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS |ALREADY GRADED A+(NEWEST VERSION!)
The particular price that results in quantity supplied being equal to quantity
demanded is the best price because it
a.
minimizes the expenditure of buyers.
b.
maximizes costs of the seller.
c.
maximizes the combined welfare of buyers and sellers.
d.
maximizes tax revenue for the government. - Correct Answer-C
Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he
wishes at a price of $0.55 per can. On a particular day, he is willing to pay $0.95
for the first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for
the fourth can. Assume Abraham is rational in deciding how many cans to buy. His
consumer surplus is
a.
$0.70.
b.
$1.00.
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, ECON 202 Ole Miss Hayes Final Newest / ECON 202 Ole Miss Hayes Final
Exam Preparation
c.
$0.50.
d.
$0.60. - Correct Answer-A
Inefficiency exists in an economy when a good is
a.
not produced because buyers do not value it very highly.
b.
not being consumed by buyers who value it most highly.
c.
being produced with less than all available resources.
d.
not distributed fairly among buyers. - Correct Answer-B
Producer surplus directly measures
a.
the well-being of society as a whole.
b.
sellers' willingness to sell.
c.
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, ECON 202 Ole Miss Hayes Final Newest / ECON 202 Ole Miss Hayes Final
Exam Preparation
the well-being of sellers.
d.
the well-being of buyers and sellers. - Correct Answer-C
A price ceiling will be binding only if it is set
a.
above the equilibrium price.
b.
equal to the equilibrium price.
c.
either above or below the equilibrium price.
d.
below the equilibrium price. - Correct Answer-D
A legal maximum on the price at which a good can be sold is called a price
a.
subsidy.
b.
ceiling.
c.
support.
3|Page
, ECON 202 Ole Miss Hayes Final Newest / ECON 202 Ole Miss Hayes Final
Exam Preparation
d.
floor. - Correct Answer-B
A tax imposed on the sellers of a good will raise the
a.
price paid by buyers and lower the equilibrium quantity.
b.
price paid by buyers and raise the equilibrium quantity.
c.
effective price received by sellers and raise the equilibrium quantity.
d.
effective price received by sellers and lower the equilibrium quantity. - Correct
Answer-A
A price ceiling is binding when it is set
a.
above the equilibrium price, causing a shortage.
b.
below the equilibrium price, causing a surplus.
c.
below the equilibrium price, causing a shortage.
d.
above the equilibrium price, causing a surplus. - Correct Answer-C
4|Page
Exam Preparation
ECON 202 OLE MISS HAYES FINAL NEWEST / ECON 202 OLE MISS
HAYES FINAL EXAM PREPARATION /ECON 202 OLE MISS HAYES FINAL
PRACTICE EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS |ALREADY GRADED A+(NEWEST VERSION!)
The particular price that results in quantity supplied being equal to quantity
demanded is the best price because it
a.
minimizes the expenditure of buyers.
b.
maximizes costs of the seller.
c.
maximizes the combined welfare of buyers and sellers.
d.
maximizes tax revenue for the government. - Correct Answer-C
Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he
wishes at a price of $0.55 per can. On a particular day, he is willing to pay $0.95
for the first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for
the fourth can. Assume Abraham is rational in deciding how many cans to buy. His
consumer surplus is
a.
$0.70.
b.
$1.00.
1|Page
, ECON 202 Ole Miss Hayes Final Newest / ECON 202 Ole Miss Hayes Final
Exam Preparation
c.
$0.50.
d.
$0.60. - Correct Answer-A
Inefficiency exists in an economy when a good is
a.
not produced because buyers do not value it very highly.
b.
not being consumed by buyers who value it most highly.
c.
being produced with less than all available resources.
d.
not distributed fairly among buyers. - Correct Answer-B
Producer surplus directly measures
a.
the well-being of society as a whole.
b.
sellers' willingness to sell.
c.
2|Page
, ECON 202 Ole Miss Hayes Final Newest / ECON 202 Ole Miss Hayes Final
Exam Preparation
the well-being of sellers.
d.
the well-being of buyers and sellers. - Correct Answer-C
A price ceiling will be binding only if it is set
a.
above the equilibrium price.
b.
equal to the equilibrium price.
c.
either above or below the equilibrium price.
d.
below the equilibrium price. - Correct Answer-D
A legal maximum on the price at which a good can be sold is called a price
a.
subsidy.
b.
ceiling.
c.
support.
3|Page
, ECON 202 Ole Miss Hayes Final Newest / ECON 202 Ole Miss Hayes Final
Exam Preparation
d.
floor. - Correct Answer-B
A tax imposed on the sellers of a good will raise the
a.
price paid by buyers and lower the equilibrium quantity.
b.
price paid by buyers and raise the equilibrium quantity.
c.
effective price received by sellers and raise the equilibrium quantity.
d.
effective price received by sellers and lower the equilibrium quantity. - Correct
Answer-A
A price ceiling is binding when it is set
a.
above the equilibrium price, causing a shortage.
b.
below the equilibrium price, causing a surplus.
c.
below the equilibrium price, causing a shortage.
d.
above the equilibrium price, causing a surplus. - Correct Answer-C
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