Econ 202- Final Exam Questions with Correct Answers
A normal good is a good for which Correct Answer-demand increases when income increases.
Which of the following is NOT one of the factors that influences the supply of a product? Correct Answer-income
Which of the following is a microeconomic topic? Correct Answer-the reasons why Kathy buys less orange juice
When supply decreases and demand does not change, the equilibrium quantity Correct Answer-decreases and the price rises
If two variables are positively related Correct Answer-they move in the same direction over time
When the demand for a good decreases, its equilibrium price ___ and equilibrium quantity___. Correct Answer-falls; decreases
Goods that have a negative or inverse relationship between changes in income and changes in the demand for a product are called: Correct Answer-inferior goods
A price ___ makes it illegal to pay a lower price that the specified level. One example is Correct Answer-floor; the minimum wage A change in which of the following shifts the demand curve? Correct Answer-the tastes and preferences of consumers
A change in the price of a good Correct Answer-does not shift the good's
demand curve but does cause a movement along it.
The study of the decisions of individual units in the economy is known as Correct Answer-microeconomics
Which of the following correctly describes how price adjustments eliminate a shortage? Correct Answer-As the price rises, the quantity demanded decreases while the quantity supplied increases
The "law of supply" states that, other things remaining the same Correct Answer-firms will produce more of a good the higher its price
Opportunity cost is measured in terms of Correct Answer-both monetary
value and time
By itself, an increase in the number of suppliers in a market results in a Correct Answer-rightward shift in the supply curve
The "law of demand" states that changes in Correct Answer-the quantity demanded of a good are inversely related to changes in its price The quantity demanded of a good or service is the quantity that a consumer Correct Answer-is willing to buy at a particular price during a given time period.
Each point on a supply curve represents Correct Answer-the lowest price
for which a supplier can profitably sell another unit.
A society that is on its production possibilities frontier is Correct Answer-fully utilizing its productive resources
Each point on the demand curve reflects Correct Answer-the highest price consumers are willing and able to pay for that particular unit of a good.
Individual economic decisions are coordinated by Correct Answer-
markets through adjustments in prices
Which of the following will increase the demand for a normal good? Correct Answer-The price of the good is expected to increase in the future.
When a market is in equilibrium Correct Answer-there is no shortage and no surplus at the equilibrium price.
A nation produces at a point its PPF Correct Answer-when it produces inefficiently.
A normal good is a good for which Correct Answer-demand increases when income increases.
Which of the following is NOT one of the factors that influences the supply of a product? Correct Answer-income
Which of the following is a microeconomic topic? Correct Answer-the reasons why Kathy buys less orange juice
When supply decreases and demand does not change, the equilibrium quantity Correct Answer-decreases and the price rises
If two variables are positively related Correct Answer-they move in the same direction over time
When the demand for a good decreases, its equilibrium price ___ and equilibrium quantity___. Correct Answer-falls; decreases
Goods that have a negative or inverse relationship between changes in income and changes in the demand for a product are called: Correct Answer-inferior goods
A price ___ makes it illegal to pay a lower price that the specified level. One example is Correct Answer-floor; the minimum wage A change in which of the following shifts the demand curve? Correct Answer-the tastes and preferences of consumers
A change in the price of a good Correct Answer-does not shift the good's
demand curve but does cause a movement along it.
The study of the decisions of individual units in the economy is known as Correct Answer-microeconomics
Which of the following correctly describes how price adjustments eliminate a shortage? Correct Answer-As the price rises, the quantity demanded decreases while the quantity supplied increases
The "law of supply" states that, other things remaining the same Correct Answer-firms will produce more of a good the higher its price
Opportunity cost is measured in terms of Correct Answer-both monetary
value and time
By itself, an increase in the number of suppliers in a market results in a Correct Answer-rightward shift in the supply curve
The "law of demand" states that changes in Correct Answer-the quantity demanded of a good are inversely related to changes in its price The quantity demanded of a good or service is the quantity that a consumer Correct Answer-is willing to buy at a particular price during a given time period.
Each point on a supply curve represents Correct Answer-the lowest price
for which a supplier can profitably sell another unit.
A society that is on its production possibilities frontier is Correct Answer-fully utilizing its productive resources
Each point on the demand curve reflects Correct Answer-the highest price consumers are willing and able to pay for that particular unit of a good.
Individual economic decisions are coordinated by Correct Answer-
markets through adjustments in prices
Which of the following will increase the demand for a normal good? Correct Answer-The price of the good is expected to increase in the future.
When a market is in equilibrium Correct Answer-there is no shortage and no surplus at the equilibrium price.
A nation produces at a point its PPF Correct Answer-when it produces inefficiently.
