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Microeconomics Final Exam/141 questions with Answers/Distinction Scores
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Microeconomics Final Exam/141questions with Answers/Distinction
Scores
(unit 2)
A downward sloping demand curve can be explained by
I. diminishing marginal utility
II. diminishing marginal returns
III. the substitution effect
IV. the income effect - -I, III, and IV only
- Which of the following will not change the demand for oranges? - -A
change in the price of oranges
- If there is an increase in demand for a good, what will most likely happen
to the price and quantity of the good exchanged? - -Price increase, Quantity
increase
- If hot dogs are an inferior good, an increase in income will result in - -a
decrease in demand for hot dogs
- An increase in the price of gasoline will cause the demand curve for tires to
shift in which direction? - -To the left, because gasoline and tires are
complements
- Assume that coal is a normal good. If the price of coal increases and the
quantity sold increases, which of the following is consistent with these
observations? - -The price of oil increased, oil and coal being substitutes
- During a football game, it starts to rain and the temperature drops. The
senior class, which runs the concession stand and is studying economics,
reaises the price of coffee from 50 cents to 75 cents a cup. They sell more
than ever before. Which answer explains this? - -The demand for coffee
increased.
- Which of the following statements best reflects the law of diminishing
marginal utility? - -"I couldn't eat another doughnut if you paid me."
- Which of the following will not cause the demand curve for athletic shoes
to shift? - -A decrease in the price of athletic shoes
- Assume that the demand for apples is downward sloping. If the price of
apples falls from $.80 to $.65 per pound, which of the following will occur? -
-A larger quantity of apples will be demanded
, - On the graph above, what area represents consumer surplus when the
price is $10? - -C
- If the cost of producing automobiles increases, equilibrium quantity and
consumer surplus will most likely change in which of the following ways? - -
Price increase, Quantity decrease, Consumer Surplus decrease
- Compare with 2000 and 2001. Which of the following statements is (are)
true?
I. Demand has increased
II. Quantity demanded has increased
III. Supply has increased
IV. Quantity supplied has increased
V. Supply has decreased - -I and IV only
- Producer surplus is the - -amount the seller is paid less the cost of
production
- During the 1990s, the price of VCRs fell by about 30%, and quantity sold
decreased by the same amount. The demand for VCRs must - -have shifted
to the left
- Which of the following will occur if a legal price floor is placed on a good
below its free-market equilibrium? - -The equilibrium price will ration the
good
- A marketing survey shows that gate receipts would increase if the price of
tickets to a summer rock concert increased, even though the number of
tickets sold would fall. What does this imply about the price elasticity of
demand for concert tickets? - -Demand is inelastic
- According to the graph above, which of the following will occur if a legal
price ceiling is imposed at price X? - -Shortages will occur
- Which of the following statements about price controls is true? - -Price
ceilings and price floors result in a misallocation of resources
- If the price of a lunch at thee school cafeteria increases and cafeteria
revenue remains constant, the elasticity of demand for a school lunch must
be - -unit elastic
- If an excise tax is imposed on a product, comsumer surplus and producer
surplus for this good will most likely change in which of the following ways? -
-Consumer Surplus decrease, Producer Surplus decrease
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