ECON 202 Ole Miss Hayes Midterm Newest / ECON 202 Ole Miss Hayes
Midterm Exam Preparation
ECON 202 OLE MISS HAYES MIDTERM NEWEST / ECON 202 OLE
MISS HAYES MIDTERM EXAM PREPARATION /ECON 202 OLE
MISS HAYES MIDTERM PRACTICE EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY
GRADED A+(NEWEST VERSION!)
If an economy is operating inside its production possibilities curve for consumer
goods and capital goods, it - Correct Answer-can produce more of both consumer
goods and capital goods by using resources that are currently idle.
Broadly defined, competition involves - Correct Answer-independently acting
buyers and sellers and freedom to enter or leave markets.
Productive efficiency refers to - Correct Answer-the use of the least-cost method
of production.
A price floor in a competitive market will result in persistent shortages of a
product. - Correct Answer-false
In moving along a demand curve, which of the following is not held constant? -
Correct Answer-the price of the product itself.
At the point where the demand and supply curves for a product intersect, -
Correct Answer-the quantity that consumers want to purchase and the amount
producers choose to sell are the same.
1|Page
, ECON 202 Ole Miss Hayes Midterm Newest / ECON 202 Ole Miss Hayes
Midterm Exam Preparation
If there is a shortage of product X, and the price is free to change, - Correct
Answer-the price of the product will rise.
The equilibrium price and quantity in a market usually produce allocative
efficiency because - Correct Answer-marginal benefit and marginal cost are equal
at that point.
The equilibrium price and quantity in a market usually produce allocative
efficiency because - Correct Answer-marginal benefit and marginal cost are equal
at that point.
Surpluses drive market prices up; shortages drive them down. - Correct Answer-
false
If the supply of a product decreases and the demand for that product
simultaneously increases, then equilibrium - Correct Answer-price must rise, but
equilibrium quantity may rise, fall, or remain unchanged.
The law of supply indicates that, other things equal, - Correct Answer-producers
will offer more of a product at high prices than at low prices.
At the equilibrium price, - Correct Answer-there are no pressures on price to
either rise or fall.
2|Page
, ECON 202 Ole Miss Hayes Midterm Newest / ECON 202 Ole Miss Hayes
Midterm Exam Preparation
Which of the following will cause a decrease in market equilibrium price and an
increase in equilibrium quantity? - Correct Answer-an increase in supply
With a downsloping demand curve and an upsloping supply curve for a product, a
decrease in resource prices will - Correct Answer-decrease equilibrium price and
increase equilibrium quantity.
A price floor means that - Correct Answer-government is imposing a minimum
legal price that is typically above the equilibrium price.
The law of demand states that, other things equal, - Correct Answer-price and
quantity demanded are inversely related.
An increase in quantity supplied might be caused by an increase in production
costs. - Correct Answer-false
A government tax per unit of output reduces supply. - Correct Answer-true
An increase in consumer incomes will cause a decrease in the demand for an
inferior good. - Correct Answer-true
Two goods are considered to be related goods by many buyers: if the price of one
increases, buyers buy more of the other. This indicates that the two goods are
complements. - Correct Answer-false
3|Page
Midterm Exam Preparation
ECON 202 OLE MISS HAYES MIDTERM NEWEST / ECON 202 OLE
MISS HAYES MIDTERM EXAM PREPARATION /ECON 202 OLE
MISS HAYES MIDTERM PRACTICE EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY
GRADED A+(NEWEST VERSION!)
If an economy is operating inside its production possibilities curve for consumer
goods and capital goods, it - Correct Answer-can produce more of both consumer
goods and capital goods by using resources that are currently idle.
Broadly defined, competition involves - Correct Answer-independently acting
buyers and sellers and freedom to enter or leave markets.
Productive efficiency refers to - Correct Answer-the use of the least-cost method
of production.
A price floor in a competitive market will result in persistent shortages of a
product. - Correct Answer-false
In moving along a demand curve, which of the following is not held constant? -
Correct Answer-the price of the product itself.
At the point where the demand and supply curves for a product intersect, -
Correct Answer-the quantity that consumers want to purchase and the amount
producers choose to sell are the same.
1|Page
, ECON 202 Ole Miss Hayes Midterm Newest / ECON 202 Ole Miss Hayes
Midterm Exam Preparation
If there is a shortage of product X, and the price is free to change, - Correct
Answer-the price of the product will rise.
The equilibrium price and quantity in a market usually produce allocative
efficiency because - Correct Answer-marginal benefit and marginal cost are equal
at that point.
The equilibrium price and quantity in a market usually produce allocative
efficiency because - Correct Answer-marginal benefit and marginal cost are equal
at that point.
Surpluses drive market prices up; shortages drive them down. - Correct Answer-
false
If the supply of a product decreases and the demand for that product
simultaneously increases, then equilibrium - Correct Answer-price must rise, but
equilibrium quantity may rise, fall, or remain unchanged.
The law of supply indicates that, other things equal, - Correct Answer-producers
will offer more of a product at high prices than at low prices.
At the equilibrium price, - Correct Answer-there are no pressures on price to
either rise or fall.
2|Page
, ECON 202 Ole Miss Hayes Midterm Newest / ECON 202 Ole Miss Hayes
Midterm Exam Preparation
Which of the following will cause a decrease in market equilibrium price and an
increase in equilibrium quantity? - Correct Answer-an increase in supply
With a downsloping demand curve and an upsloping supply curve for a product, a
decrease in resource prices will - Correct Answer-decrease equilibrium price and
increase equilibrium quantity.
A price floor means that - Correct Answer-government is imposing a minimum
legal price that is typically above the equilibrium price.
The law of demand states that, other things equal, - Correct Answer-price and
quantity demanded are inversely related.
An increase in quantity supplied might be caused by an increase in production
costs. - Correct Answer-false
A government tax per unit of output reduces supply. - Correct Answer-true
An increase in consumer incomes will cause a decrease in the demand for an
inferior good. - Correct Answer-true
Two goods are considered to be related goods by many buyers: if the price of one
increases, buyers buy more of the other. This indicates that the two goods are
complements. - Correct Answer-false
3|Page
