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Eco 2302 Exam Questions And Correct Answers
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Eco 2302 Exam Questions And Correct AnswersWhich of the follow would lead to higher price Elasticity of demand? - Answer More
substitutes for the goods.
If the price elasticity of demand for ketchup is 0.50, then the price elasticity of demand
for ______ is likely to be ______ - Answer Brand A ketchup ,higher.
At a price of $8.00. quantity supplied is 100 units. At a price of $9.00, quantity supplied
is 126 units. Price elasticity of supply for the good is approximately_______ - Answer 1.96
If the supply curve of a good is perfectly elastic, and a per unit tax is placed on the
production of the good, it follows that ________ - Answer Consumers will end up paying
the entire tax.
If demand for good is inelastic, and price rises, total revenue ____; if demand of good is
elastic and price falls, total revenue will ____; if demand of Good is unit elastic and price
rises, total revenue will ____. - Answer rise, rise, remain unchanged
If good X falls in price by 5% and the quantity demanded of good Y rises by 4% the cross
elasticity of demand for goods X and Y is _____ and goods X and Y are_______ - Answer
-0.80, complements
Supply and Demand The price of good Y rises from $8.00 to $8.60 as the quantity
supplied rises from 2,000 to 2,400 units the price elasticity of supply for good Y is _____
and good Y is price _____ in supply. -Answer 2.52, elastic
If demand is _____ or supply is _____, the seller of a good will pay the full tax that is
placed on the sale of that good. Perfectly elastic, perfectly inelastic
, Mary spends the following percentage of her budget on goods A,B,C, and D: 29% on
good A, 15% good B, 10%good on C, and 6%good D. Ceteris paribus, for which good is
price elasticity of demand the highest, ceteris paribus? - Answer Good A
the endowment effect - Answer states that we value an item more highly if we own it
than if we do not own it.
Which of the following provides the meaning of compartmentalizing? - Answer innie can
more easily spend the $100 that he got as a birthday present than the $100 he earned at
his job.
If marginal utility for a good becomes negative, then - Answer total utility of the good
may start to fall beyond some point.
Suppose Joe is buying lemonade and popcorn in quantities such that he is attaining
consumer equilibrium. Then the price of lemonade rises. Ceteris paribus, Joe will be
likely to ________ his consumption of lemonade because the marginal utility per dollar
spent on lemonade has ________. - Answer: decrease, decreased
Researchers in the field of neuroeconomics have found that when an individual is faced
with two future-oriented choices the ________ system is involved which is the portion of
the brain that deals with ________. - Answer analytic, calculating, conscious thinking
The reason that diamonds are more expensive than water is because a diamond has
________ than an additional unit of water. - Answer a higher marginal utility
David receives 50 utils from consuming two oranges. His marginal utility from the
consumption of the second orange is 20 utils. The law of diminishing marginal utility can
be applied to determine that A) David's marginal utility from the third orange will be less
than 20 utils.
Which of the following is false? - Answer If marginal utility is falling then total utility must
also be falling.
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