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ECON 201 FINAL EXAM- Version 1| Questions with Complete Solutions.
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ECON 201 FINAL EXAM- Version 1| Questions with Complete Solutions.
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ECON 201 FINAL EXAMTable 2.1 Kaitlyn and Larissa have formed a dog bathing and gr
ooming business. The number of dogs they can bathe or groom
in any given day is depicted in Table 2.1. The opportunity cost
of grooming the third dog in a day is bathing ________ dog(s).
a. 3
b. 4
c. 5
d. 18
Answer:b. 4
Suppose that you own a house. What is the opportunity cost of
living in the house?
a. There is no opportunity cost unless you could set up a busin
ess in the house.
b. The opportunity cost is the rent you could have received from
a tenant if you didn't live there.
c. The opportunity cost is the cost of your monthly mortgage pa
yment plus bills.
d. There is no opportunity cost because you own the house.
Answer:b. The opportunity cost is the rent you could have recei
ved from a tenant if you didn't live there.
Kaitlyn and Larissa have formed a dog bathing and grooming b
usiness business. The number of dogs they can bathe or groo
,m in any given day is depicted in Table 2.1. The opportunity co
st of grooming the first dog in a day is bathing ________ dog(s).
a. 1 b
b. 2
c. 24
d. 25
Answer:b.2
Steven lives in a big city where there is a shortage of parking. H
e has a parking spot in his driveway where he parks his car. W
hich of the following statements is most correct?
a. The opportunity cost depends on how much Steven's mortga
ge payment is.
b. Steven has a lower opportunity cost of owning a car than his
neighbor, who must rent a parking spot.
c. The opportunity cost of using the spot is zero, because Steve
n owns the house
d. The opportunity cost of using the parking spot is the price he
could charge someone else for using the spot.
Answer:d. The opportunity cost of using the parking spot is the
price he could charge someone else for using the spot.
Refer to Table 2.4. The principle of diminishing returns sets in
with the addition of the tank of fertilizer.
a. second
,b. third
c. fourth
d. fifth
Answer:a. second
Diminishing returns occurs because
a. consumers don't buy enough of the products produced.
b. not enough people have jobs
c. two people have not satisfied their self-interests.
d. one of the inputs in the production process is fixed.
Answer:d. one of the inputs in the production process is fixed.
In table 2.3, the principle of diminishing returns first occurs whe
n how many workers are hired?
a. 2
b. 3
c. 4
d. 5
Answer:d c. 4
According to the principle of diminishing returns, an additional
worker decreases total output.
a. True
, b. False
Answer:d b. False
Kaitlyn and Larissa have formed a dog bathing and grooming b
usiness. The number of dogs they can bathe or groom in any gi
ven day is depicted in Table 2.1. The opportunity cost of groomi
ng the sixth dog in a day is bathing ________dog(s).
a. 0
b. 5
c. 6
d. 7
Answer:d. 7
If the demand for jelly decreases, and the price of grapes (used
to make jelly) rises
a. the equilibrium price of jelly might rise or fall, and the equilibri
um quantity of jelly falls.
b. the equilibrium price of jelly rises and the equilibrium quantity
of jelly might rise or fall.
c. the equilibrium price of jelly might rise or fall, and the equilibri
um quantity of jelly rises.
d. the equilibrium price of jelly falls and the equilibrium quantity
of jelly might rise or fall.
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