Microeconomics Final UPDATED Actual Exam Questions and CORRECT Answers
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Microeconomics
Institution
Microeconomics
Microeconomics Final UPDATED Actual
Exam Questions and CORRECT Answers
The sum of all the individual supply curves for a product is called?
a. total supply
b. market supply
c. aggregate supply
d. total output - CORRECT ANSWER- b. market supply
Microeconomics Final UPDATED Actual
Exam Questions and CORRECT Answers
The sum of all the individual supply curves for a product is called?
a. total supply
b. market supply
c. aggregate supply
d. total output - CORRECT ANSWER✔✔- b. market supply
A market supply curve shows how the total quantity supplied of a good varies as
a. technology varies
b. price varies
c. input prices vary
d. demand varies - CORRECT ANSWER✔✔- b. price varies
Today, producers changed their expectation about the future. This change
a. can cause a movement along a supply curve
b. can affect future supply, but not today's supply
c. can affect today's supply
d. cannot affect either today's supply or future supply - CORRECT ANSWER✔✔- c. can
affect today's supply.
Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It
has just learned that its leading competitor, Toysorama, is mass-producing an excellent copy
and plans to flood the market with their $5 doll in 6 weeks. Funster should
a. "fight fire with fire" by decreasing supply of its doll for 6 weeks and then increasing the
supply.
b. increase the supply of their doll now before the other doll hits the market.
c. increase the price of their now.
d. discontinue their doll. - CORRECT ANSWER✔✔- b. increase the supply of their doll now
before the other doll hits the market.
, Which space represents an increase in equilibrium price and an indeterminate change in
equilibrium quantity?
a. an increase in demand and an increase in supply
b. an increase in demand and a decrease in supply
c. a decrease in demand and an increase in supply
d. a decrease in demand and a decrease in supply - CORRECT ANSWER✔✔- b. an increase
in demand and a decrease in supply
What will happen to the equilibrium price and quantity of new cars if the price of gasoline
rises, the price of steel rises, public transportation becomes cheaper and more comfortable,
and auto-workers negotiate higher wages?
a. Price will fall and the effect on quantity is ambiguous.
b. Price will rise and the effect on quantity is ambiguous.
c. Quantity will fall and the effect on price is ambiguous.
d. Quantity will rise and the effect on price is ambiguous. - CORRECT ANSWER✔✔- c.
Quantity will fall and the effect on price is ambiguous.
Which of the following is likely to have the most price inelastic demand?
a. mint-flavored toothpaste
b. toothpaste
c. Colgate mint-flavored toothpaste
d. a generic mint-flavored toothpaste - CORRECT ANSWER✔✔- b. toothpaste
The price elasticity of demand for eggs
a. is computed as the percentage change in quantity demanded of eggs divided by the
percentage change in price of eggs.
b. will be lower if there is a new invention that is a close substitute for eggs.
c. will be higher if consumers consider eggs to be a luxury good.
d. All of the above are correct. - CORRECT ANSWER✔✔- a. is computed as the percentage
change in quantity demanded of eggs divided by the percentage change in price of eggs.
Suppose that quantity rises by 10% as a result of a 15% decrease in price. The price elasticity
of demand for this good is
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