ECON FINAL PEPP NEWEST ACTUAL EXAM
ECON FINAL PEPP NEWEST ACTUAL EXAM COMPLETE 250 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+||BRAND NEW VERSION!!
Its lunch time, you are hungry and would like to have some pizza. By the law of
diminishing marginal value,
A.) you would pay more for your first slice of pizza than your second
B.) you would pay more for your second slice of pizza than your first
C.) you would pay an equal amount of money for both the slices since they are
identical
D.) none of the above - Correct Answer-A.) you would pay more for your first slice
of pizza than your second
The difference between the value you place on a product and its market price is
called
A.) Consumer surplus
B.) Quantity demanded
C.) Demand
D.) None of the above - Correct Answer-A.) Consumer surplus
Changes in the price of a product can cause
A.) A movement along the demand curve
B.) A shift of the demand curve
C.) A shift of the supply curve
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, ECON FINAL PEPP NEWEST ACTUAL EXAM
D.) All of the above - Correct Answer-A.) A movement along the demand curve
Which of the following would shift the supply of Florida Oranges to the left?
A.) hurricane in Florida destroying a major part of the crop
B.) an increase in the price of water per unit, a major input, used to irrigate the
orange trees
C). one of the orange groves shuts down
D.) all of the above - Correct Answer-D.) all of the above
A recent medical study reports new benefits of cycling. Simultaneously, the price
of the parts needed to make bikes falls. The demand curve would _________ and
the supply curve would__________
A.) Shift to the right, shift to the left
B.) shift to the left, shift to the right
C.) shift to the left, shift to the left
D.) shift to the right, shift to the right - Correct Answer-D.) shift to the right, shift
to the right
Excess supply of a product exerts ___________pressure on prices
A.) Zero
B.) No
C.) Upward
D.) Downward - Correct Answer-D.) Downward
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, ECON FINAL PEPP NEWEST ACTUAL EXAM
An increase in the price of laptop memory chips causes the price for laptops
_____________ and the quantity supplied for laptops ____________.
A.) Increase; increase
B.) Increase; decrease
C.) Decrease; increase
D.) Decrease, decrease - Correct Answer-B.) Increase; decrease
An attack on an oil field in Saudi Arabia would have what impact on the global
market for crude oil?
A.) Increase in price due to an increase in Demand
B.) Increase in price due to an decrease in Demand
C.) Decrease in price due to an decrease in Demand
D.) Decrease in price due to an increase in Supply
E.) Increase in price due to an decrease in Supply - Correct Answer-E.) Increase in
price due to an decrease in Supply
The quantity of bottled water sold in the past decade has increased signifi- cantly
despite very little change in price. What best explains this?
A.) Increase in Demand and decrease in Supply
B.) Increase in Demand and no change in Supply
C.) Decrease in Demand and increase in Supply
D.) Increase in Demand and increase in Supply - Correct Answer-D.) Increase in
Demand and increase in Supply
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, ECON FINAL PEPP NEWEST ACTUAL EXAM
Which is MOST likely to happen in the market for picture frames if there is an
INCREASE in the price of glass and a DECREASE in the price of consumer photo-
printing services? NB: Think of shocks to Supply and/or Demand first.
A.) Increase in price, decrease in quantity
B.) Decrease in price, Uncertain change in quantity
C.) Increase in price, Uncertain change in quantity
D.) Uncertain change in price, Decrease in quantity
E. Decrease in price, Decrease in quantity - Correct Answer-C.) Increase in price,
Uncertain change in quantity
The difference between the maximum price the consumer is willing to pay and the
price the consumer actually pays for a product is referred to as:
A.) market surplus.
B.) market shortage.
C.) consumer surplus.
D.) producer surplus. - Correct Answer-C.) consumer surplus.
You are sick and tired of your old wardrobe. You decide to donate it to a charity of
your choice. Your action
A.) Creates wealth by moving the clothes from lower value use to higher value
use
B.) Destroys wealth since you lose your clothes
C.) Creates wealth by making you feel richer
D.) All of the above - Correct Answer-A.) Creates wealth by moving the clothes
from lower value use to higher value use
4|Page
ECON FINAL PEPP NEWEST ACTUAL EXAM COMPLETE 250 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+||BRAND NEW VERSION!!
Its lunch time, you are hungry and would like to have some pizza. By the law of
diminishing marginal value,
A.) you would pay more for your first slice of pizza than your second
B.) you would pay more for your second slice of pizza than your first
C.) you would pay an equal amount of money for both the slices since they are
identical
D.) none of the above - Correct Answer-A.) you would pay more for your first slice
of pizza than your second
The difference between the value you place on a product and its market price is
called
A.) Consumer surplus
B.) Quantity demanded
C.) Demand
D.) None of the above - Correct Answer-A.) Consumer surplus
Changes in the price of a product can cause
A.) A movement along the demand curve
B.) A shift of the demand curve
C.) A shift of the supply curve
1|Page
, ECON FINAL PEPP NEWEST ACTUAL EXAM
D.) All of the above - Correct Answer-A.) A movement along the demand curve
Which of the following would shift the supply of Florida Oranges to the left?
A.) hurricane in Florida destroying a major part of the crop
B.) an increase in the price of water per unit, a major input, used to irrigate the
orange trees
C). one of the orange groves shuts down
D.) all of the above - Correct Answer-D.) all of the above
A recent medical study reports new benefits of cycling. Simultaneously, the price
of the parts needed to make bikes falls. The demand curve would _________ and
the supply curve would__________
A.) Shift to the right, shift to the left
B.) shift to the left, shift to the right
C.) shift to the left, shift to the left
D.) shift to the right, shift to the right - Correct Answer-D.) shift to the right, shift
to the right
Excess supply of a product exerts ___________pressure on prices
A.) Zero
B.) No
C.) Upward
D.) Downward - Correct Answer-D.) Downward
2|Page
, ECON FINAL PEPP NEWEST ACTUAL EXAM
An increase in the price of laptop memory chips causes the price for laptops
_____________ and the quantity supplied for laptops ____________.
A.) Increase; increase
B.) Increase; decrease
C.) Decrease; increase
D.) Decrease, decrease - Correct Answer-B.) Increase; decrease
An attack on an oil field in Saudi Arabia would have what impact on the global
market for crude oil?
A.) Increase in price due to an increase in Demand
B.) Increase in price due to an decrease in Demand
C.) Decrease in price due to an decrease in Demand
D.) Decrease in price due to an increase in Supply
E.) Increase in price due to an decrease in Supply - Correct Answer-E.) Increase in
price due to an decrease in Supply
The quantity of bottled water sold in the past decade has increased signifi- cantly
despite very little change in price. What best explains this?
A.) Increase in Demand and decrease in Supply
B.) Increase in Demand and no change in Supply
C.) Decrease in Demand and increase in Supply
D.) Increase in Demand and increase in Supply - Correct Answer-D.) Increase in
Demand and increase in Supply
3|Page
, ECON FINAL PEPP NEWEST ACTUAL EXAM
Which is MOST likely to happen in the market for picture frames if there is an
INCREASE in the price of glass and a DECREASE in the price of consumer photo-
printing services? NB: Think of shocks to Supply and/or Demand first.
A.) Increase in price, decrease in quantity
B.) Decrease in price, Uncertain change in quantity
C.) Increase in price, Uncertain change in quantity
D.) Uncertain change in price, Decrease in quantity
E. Decrease in price, Decrease in quantity - Correct Answer-C.) Increase in price,
Uncertain change in quantity
The difference between the maximum price the consumer is willing to pay and the
price the consumer actually pays for a product is referred to as:
A.) market surplus.
B.) market shortage.
C.) consumer surplus.
D.) producer surplus. - Correct Answer-C.) consumer surplus.
You are sick and tired of your old wardrobe. You decide to donate it to a charity of
your choice. Your action
A.) Creates wealth by moving the clothes from lower value use to higher value
use
B.) Destroys wealth since you lose your clothes
C.) Creates wealth by making you feel richer
D.) All of the above - Correct Answer-A.) Creates wealth by moving the clothes
from lower value use to higher value use
4|Page
