UNT ECON 1100 EXAM 1 EXAM (ACTUAL
EXAM) WITH CORRECT QUESTIONS AND
WELL ANSWERED ANSWERS LATEST WELL
GRADED A+ 2025 – 2026
If a 5% increase in the price of a product results in a 10%
decrease in the quantity demanded of the product, then the
absolute value of the price elasticity of demand coefficient
is _________ and demand is said to be _________. -
ANSWERS-2, elastic
The demand for potato chips will increase in response to all
of the following except: - ANSWERS-a decrease in the price
of potato chips.
In the circular flow model, resources flow from the _____
sector to the _____ sector and are converted into output
that is supplied to households through the _____ market. -
ANSWERS-household; business; product
,If quantity demanded is 30 when price is $3 and quantity
demanded is 20 when price is $5, then total revenue
__________ if price increases from $3 to $5, implying that
demand is _________. - ANSWERS-increases; inelastic
In the market for used cars, a surplus of used cars would,
ceteris paribus: - ANSWERS-put downward pressure on the
price of used cars.
The primary difference between a change in supply and a
change in the quantity supplied is: - ANSWERS-a change in
quantity supplied is caused by a change in the price of the
good itself, and a change in supply is caused by a change in a
non-price determinant of supply
Which of the following will cause a decrease in the demand
for batteries? - ANSWERS-An increase in the price of digital
cameras, a complement for batteries
Based on the information in the table below, the
opportunity cost of producing one clock in Mexico is:
Clock Radio
Spain 4 hours 2 hours
, Mexico 3 hours 6 hours - ANSWERS-1/2 radio.
Which of the following is a normative microeconomic
statement? - ANSWERS-Government should lower the taxes
paid by small businesses.
An outward shift of a production possibilities frontier
illustrates that: - ANSWERS-economic growth has occurred.
If the demand for electricity is inelastic but not perfectly
inelastic, a 10% increase in the price of electricity is likely to:
- ANSWERS-lead to a decrease in the quantity demanded of
electricity of less than 10%.
In the graph below, a shift from PPF1 to PPF2 will occur as a
result of: - ANSWERS-an increase in the resources and
technology used to produce food and clothing.
Initially, assume Country A is producing and consuming 10
cars and 20 boats, while Country B is producing and
consuming 20 cars and 40 boats. The two countries then
decide to specialize according to comparative advantage
and engage in trade. The potential gains from trade for both
EXAM) WITH CORRECT QUESTIONS AND
WELL ANSWERED ANSWERS LATEST WELL
GRADED A+ 2025 – 2026
If a 5% increase in the price of a product results in a 10%
decrease in the quantity demanded of the product, then the
absolute value of the price elasticity of demand coefficient
is _________ and demand is said to be _________. -
ANSWERS-2, elastic
The demand for potato chips will increase in response to all
of the following except: - ANSWERS-a decrease in the price
of potato chips.
In the circular flow model, resources flow from the _____
sector to the _____ sector and are converted into output
that is supplied to households through the _____ market. -
ANSWERS-household; business; product
,If quantity demanded is 30 when price is $3 and quantity
demanded is 20 when price is $5, then total revenue
__________ if price increases from $3 to $5, implying that
demand is _________. - ANSWERS-increases; inelastic
In the market for used cars, a surplus of used cars would,
ceteris paribus: - ANSWERS-put downward pressure on the
price of used cars.
The primary difference between a change in supply and a
change in the quantity supplied is: - ANSWERS-a change in
quantity supplied is caused by a change in the price of the
good itself, and a change in supply is caused by a change in a
non-price determinant of supply
Which of the following will cause a decrease in the demand
for batteries? - ANSWERS-An increase in the price of digital
cameras, a complement for batteries
Based on the information in the table below, the
opportunity cost of producing one clock in Mexico is:
Clock Radio
Spain 4 hours 2 hours
, Mexico 3 hours 6 hours - ANSWERS-1/2 radio.
Which of the following is a normative microeconomic
statement? - ANSWERS-Government should lower the taxes
paid by small businesses.
An outward shift of a production possibilities frontier
illustrates that: - ANSWERS-economic growth has occurred.
If the demand for electricity is inelastic but not perfectly
inelastic, a 10% increase in the price of electricity is likely to:
- ANSWERS-lead to a decrease in the quantity demanded of
electricity of less than 10%.
In the graph below, a shift from PPF1 to PPF2 will occur as a
result of: - ANSWERS-an increase in the resources and
technology used to produce food and clothing.
Initially, assume Country A is producing and consuming 10
cars and 20 boats, while Country B is producing and
consuming 20 cars and 40 boats. The two countries then
decide to specialize according to comparative advantage
and engage in trade. The potential gains from trade for both
