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ECO 213 Midterm Study Guide Latest Update
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ECO 213 Midterm Study Guide Latest Update...
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ECO 213 Midterm Study Guide Latest UpdateScarcity is when we cannot have as much as we would like to have.
a. True
b. False - Answer False
When one is to make a rational decision and needs to consider the costs and benefits
that are involved in it, the opportunity cost of that decision is often not taken into
account and while it should.
a. True
b. False - Answer True
If X and Y are substitutes, a decrease in the price of Y will shift the demand curve for X to
the right.
a. True
b. False - Answer False
Using supply and demand analysis a price ceiling will result in customers waiting in line
for gasoline even if the price ceiling is set at a level higher than the equilibrium price.
a. True
b. False - Answer False
Macroeconomics is the branch of economics that studies aggregates for the economy
as a whole.
a. True
b. False - Answer True
When there is a decision to be made in which one has to consider costs and benefits
, involved, opportunity cost arising out of a decision is mostly not considered whereas it
should be.
a. True
b. False - Answer True
Suppose A and B are complements. Other things equal, the demand curve for A will shift
rightward when the price of B rises.
a. True
b. False - Answer False
Assume a price floor is set above the equilibrium price. The result is a surplus.
a. True
b. False - Answer True
A good economic model should capture as many details about real-world behaviour as
possible.
a. True
b. False - Answer False
If some resources went to waste rather to use in production, the economy would
operate outside its production possibility curve.
a. True
b. False - Answer False
Equilibrium in a market exists when there is neither a surplus nor a shortage of the item.
a. True
b. False - Answer True
Public goods are overproduced in the marketplace.
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