ECN 212 ACTUAL EXAM QUESTIONS AND ANSWERS 100% CORRECT
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Course
ECN 212
Institution
ECN 212
ECN 212 ACTUAL EXAM QUESTIONS AND ANSWERS 100% CORRECT
Which of the following events could shift both the demand curve and the supply curve for a good?
a. A technological advance pertaining to the production of the good is observed. b. Incomes of all buyers of the good increase. c. The numbe...
ECN 212 ACTUAL EXAM QUESTIONS
AND ANSWERS 100% CORRECT
Which of the following events could shift both the demand curve and the supply curve
for a good?
a. A technological advance pertaining to the production of the good is observed. b.
Incomes of all buyers of the good increase. c. The number of sellers of the good
increases. d. Everyone revises upward their expectation of next month's price of the
good - Answer- d. Everyone revises upward their expectation of next month's price of
the good
Suppose the number of buyers in a market increases and a technological advancement
occurs also. What would we expect to happen in the market?
a. The equilibrium price would increase, but the impact on the amount sold in the
market would be ambiguous .b. The equilibrium price would decrease, but the impact on
the amount sold in the market would be ambiguous. c. Equilibrium quantity would
increase, but the impact on equilibrium price would be ambiguous. d. Both equilibrium
price and equilibrium quantity would increase. - Answer- c. Equilibrium quantity would
increase, but the impact on equilibrium price would be ambiguous.
Suppose that a decrease in the price of good X results in fewer units of good Y being
sold. This implies that X and Y are
a. complementary goods .b. normal goods. c. inferior goods. d. substitute goods -
Answer- d. substitute goods
Which of the following events would cause the price of oranges to fall?
a. There is a shortage of oranges .b. An article is published in which it is claimed that
tangerines cause a serious disease, and oranges and tangerines are substitutes. c. The
price of land throughout Florida decreases, and Florida produces a significant
proportion of the nation's oranges. d. All of the above are correct. - Answer- c. The price
of land throughout Florida decreases, and Florida produces a significant proportion of
the nation's oranges.
What will happen to the equilibrium price and quantity of traditional camera film if
traditional cameras become more expensive, digital cameras become cheaper, the cost
, of the resources needed to manufacture traditional film falls and more firms decide to
manufacture traditional film?
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.
The effect on both price and quantity is ambiguous. - Answer- a. Price will fall and the
effect on quantity is ambiguous.
Define opportunity cost. What is the opportunity cost to you of attending college?
What was your opportunity cost of coming to class today - Answer- Whatever must be
given up to obtain some item it its opportunity cost. Basically, this would be a person's
second choice. The opportunity cost of a person attending college is the value of the
best alternative use of that person's time. For most students this would be the income
the student gives up by not working. A student's opportunity cost of coming to class was
the value of the best opportunity the student gave up. (For most students, that seems to
be sleep.)
Draw a production possibilities frontier showing increasing opportunity cost for hammers
in terms of horseshoes.
a. On the graph, identify the area of feasible outcomes and the area of infeasible
outcomes .b. On the graph, label a point that is efficient as point "E" and a point that is
inefficient as point "I" .c. On the graph, illustrate the effect of the discovery of a new vein
of iron ore, a resource needed to make both horseshoes and hammers, on this
economy. d. On a second graph, illustrate the effect of a new computerized assembly
line in the production of hammers on this economy - Answer-
What is the difference between a "change in supply" and a "change in quantity
supplied"?
Graph your answer. For each of the following changes, determine whether there will be
a change in quantity supplied or a change in supply.
i. a change in the resource cost
ii. a change in producer expectations iii. a change in price
iv. a change in technology
v. the number of sellers - Answer- A change in supply refers to a shift in the supply
curve. A change in quantity supplied refers to a movement along a fixed supply curve.
A hot dog vendor on a street corner wants to increase the total revenue from selling
hotdogs. The price elasticity of demand for the hot dogs is 1.1. Hence the vendor will
A) work harder to reduce the costs of production. B) lower the price of a hot dog. C)
raise the price of a hot dog as high as possible. D) do whatever it takes to sell as many
more hot dogs as possible. - Answer- B) lower the price of a hot dog
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