Microeconomics Final Exam Wade Hudson
UPDATED Actual Exam Questions and
CORRECT Answers
Which of the following forces us to choose among alternatives? - CORRECT ANSWER✔✔-
Scarcity
Economics is primarily the study of - CORRECT ANSWER✔✔- how limited resources are
allocated to satisfy unlimited wants.
A theory asserts that consumers will purchase less of a good at higher prices than they will at
lower prices. - CORRECT ANSWER✔✔- It is likely that variables other than the price and
quantity of cars demanded were changing.
The fallacy of composition is: - CORRECT ANSWER✔✔- the erroneous view that what is
true for the individual will also be true for the group.
"The government should levy higher taxes on the rich and use the additional revenues to
provide better housing for the poor." This statement illustrates - CORRECT ANSWER✔✔- a
normative economic statement.
The opportunity cost of going to college includes - CORRECT ANSWER✔✔- both tuition
and the value of the student's time.
Which of the following would cause the quantity of wheat bread demanded to increase, but
not the demand for wheat? - CORRECT ANSWER✔✔- an increase in the number of farmers
growing wheat
Which of the following is most likely to be an example of a normal good? - CORRECT
ANSWER✔✔- A large SUV
A decrease in demand and an increase in supply are indicated by - CORRECT ANSWER✔✔-
Downward shifts in both curves.
, Coca-Cola bottlers increased their prices as the price of sugar (an important ingredient in
producing Coke) rose sharply in the late 1980s. Under these circumstances, the increase in
the price of Coke occurs as a result of a(n): - CORRECT ANSWER✔✔- decrease in supply
In general, an increase in price could be caused by either: - CORRECT ANSWER✔✔- an
increase in demand or a decrease in supply
At the current price of good Y, there is a shortage. As a result, we would expect: - CORRECT
ANSWER✔✔- its price to increase, quantity demanded to decrease, and quantity supplied to
increase.
Bailey's Barber Shop knows that a 15% increase in the price of their haircuts results in a 5%
decrease in the number of haircuts purchased. What is the elasticity of demand facing
Bailey's Barber Shop? - CORRECT ANSWER✔✔- 0.33
Certain goods are related such that an increase in the price of one good decreases the demand
for the other. These goods are: - CORRECT ANSWER✔✔- complements.
For a given reduction in demand for a product - CORRECT ANSWER✔✔- the decrease in
price will be greater the more inelastic is supply.
Which of the following is true of perfectly elastic supply? - CORRECT ANSWER✔✔- An
increase in price will not change the quantity supplied.
When demand is elastic - CORRECT ANSWER✔✔- price elasticity of demand is greater
than one. consumers are relatively responsive to changes in price. the percentage change in
quantity demanded resulting from a price change is greater than the percentage change in
price.
The Book Nook reduces prices by 20%. If the dollar value of The Book Nook's sales remain
constant, it indicates that: - CORRECT ANSWER✔✔- the quantity of books sold increases
by 20%.
UPDATED Actual Exam Questions and
CORRECT Answers
Which of the following forces us to choose among alternatives? - CORRECT ANSWER✔✔-
Scarcity
Economics is primarily the study of - CORRECT ANSWER✔✔- how limited resources are
allocated to satisfy unlimited wants.
A theory asserts that consumers will purchase less of a good at higher prices than they will at
lower prices. - CORRECT ANSWER✔✔- It is likely that variables other than the price and
quantity of cars demanded were changing.
The fallacy of composition is: - CORRECT ANSWER✔✔- the erroneous view that what is
true for the individual will also be true for the group.
"The government should levy higher taxes on the rich and use the additional revenues to
provide better housing for the poor." This statement illustrates - CORRECT ANSWER✔✔- a
normative economic statement.
The opportunity cost of going to college includes - CORRECT ANSWER✔✔- both tuition
and the value of the student's time.
Which of the following would cause the quantity of wheat bread demanded to increase, but
not the demand for wheat? - CORRECT ANSWER✔✔- an increase in the number of farmers
growing wheat
Which of the following is most likely to be an example of a normal good? - CORRECT
ANSWER✔✔- A large SUV
A decrease in demand and an increase in supply are indicated by - CORRECT ANSWER✔✔-
Downward shifts in both curves.
, Coca-Cola bottlers increased their prices as the price of sugar (an important ingredient in
producing Coke) rose sharply in the late 1980s. Under these circumstances, the increase in
the price of Coke occurs as a result of a(n): - CORRECT ANSWER✔✔- decrease in supply
In general, an increase in price could be caused by either: - CORRECT ANSWER✔✔- an
increase in demand or a decrease in supply
At the current price of good Y, there is a shortage. As a result, we would expect: - CORRECT
ANSWER✔✔- its price to increase, quantity demanded to decrease, and quantity supplied to
increase.
Bailey's Barber Shop knows that a 15% increase in the price of their haircuts results in a 5%
decrease in the number of haircuts purchased. What is the elasticity of demand facing
Bailey's Barber Shop? - CORRECT ANSWER✔✔- 0.33
Certain goods are related such that an increase in the price of one good decreases the demand
for the other. These goods are: - CORRECT ANSWER✔✔- complements.
For a given reduction in demand for a product - CORRECT ANSWER✔✔- the decrease in
price will be greater the more inelastic is supply.
Which of the following is true of perfectly elastic supply? - CORRECT ANSWER✔✔- An
increase in price will not change the quantity supplied.
When demand is elastic - CORRECT ANSWER✔✔- price elasticity of demand is greater
than one. consumers are relatively responsive to changes in price. the percentage change in
quantity demanded resulting from a price change is greater than the percentage change in
price.
The Book Nook reduces prices by 20%. If the dollar value of The Book Nook's sales remain
constant, it indicates that: - CORRECT ANSWER✔✔- the quantity of books sold increases
by 20%.
