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AREC 202 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+

AREC 202 FINAL EXAM QUESTIONS SOLVED CORRECTLY Excise Tax - Answers Tax on sales of a good or service: "per-unit" tax Effects: 1. It raises price paid by buyer 2. Reduces price received by sellers 3. Drives a wedge between the two ** If the producer is taxed, the supply curve will shift upwards by the amount of the tax. ** If the consumer is taxed, the demand curve will shift downwards by the amount of the tax. **It does not matter who is actually paying the tax, the burden is ...

AREC 202 Exam Questions with Verified Solutions Latest update 2025 Comparative Advantage - Answers When a persons opportunity cost of preforming a task is lower than the other person's opportunity cost. Absolute Advantage - Answers When a person can preform a task in less time than the other person. Sunk Cost - Answers A cost that is beyond recovery at the moment a decision must be made Marginal Benefit - Answers Increases in total benefit that results from carrying out one additional uni...

What insight(s) did we get from the classroom clicker experiment where students had to choose how many points to contribute to a class account? Some people were willing to give more in order to acquire a higher point total, but other would keep all of their points. The people who decided to keep all of their points ended up better in the long-run. What insight(s) did we get from the Moblab experiment on asymmetric information (the Lemons Market experiment) The seller knows more about the va...

1. The optimal level of any activity (for consumers, firms or governments) is where A) average benefits from this activity equal average costs of this activity. B) total benefits from this activity equal total costs of this activity. C) marginal benefits from this activity equal marginal costs of this activity. D) marginal benefits from this activity are maximized. 1. To decide whether to increase an activity by one unit you should compare A) opportunity costs and sunk costs B) marginal ...

AREC 202 Midterm – Kroll UPDATED LQuestions and CORRECT Answers Opportunity Costs - CORRECT ANSWER- What you must give up in order to get a product or service. Economics is the study of? - CORRECT ANSWER- Choice What is the difference between micro and macro economics? - CORRECT ANSWER- Micro: the study of individual choice Macro: the study of the national economy

AREC 202 Midterm – Kroll UPDATED ACTUAL Questions and CORRECT Answers What is economics, and what does it have to do with your life? - CORRECT ANSWER- The study of how people make choices under conditions of scarcity What is the difference between microeconomics and macroeconomics? - CORRECT ANSWER- Macro: the study of national economies and policies the government uses to improve performance. Micro: the study of choice under scarcity and its implications for behaviors of prices...

AREC 202 FINAL ACTUAL Questions and CORRECT Answers When does demand for a normal good increase? - CORRECT ANSWER- When income increases When does demand for an inferior good increase? - CORRECT ANSWER- When income decreases If two goods are complements and the price of one good decreases, what happens to the demand, price, and quantity of the other good? - CORRECT ANSWER- It increases