Exam (elaborations)
Principles of Microeconomics Final Exam correctly answered to pass
- Course
- Microeconomics 215
- Institution
- University Of South Alabama
Principles of Microeconomics Final Exam correctly answered to pass
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Principles of Microeconomics Final ExamThe price of gold increased. The following is likely to happen on the gold market
-the demand for gold will increase now and supply of gold will decrease now
-the demand for gold will decrease now and supply of gold will increase now
-both supply and demand now will decrease
-both demand and supply now will increase
-neither supply nor demand will shift - correct answer ✔✔neither supply nor demand will shift
which of the following areas graphically represents total surplus?
-area above the supply curve but below the price
-area below the demand curve but above the price
-area below the price
-area above the price
-area below the supply curve and above the demand curve
-area above the supply curve but below the demand curve - correct answer ✔✔Area above the supply curve but below the demand curve
The price of good X Increased and the demand for good Y decreased as a result. This suggests that X and Y are
-normal goods
-inferior goods
-substitutes
-complements - correct answer ✔✔Complements Anna has 3 options of what to do today: 1) go rock climbing which she values at $40. 2) Watch the new episode of the House of Dragon which she values at $20. 3)Studying for an economics exam which she values at $10. She picks to go rock climbing. What are her opportunity costs in this case?
-$10
-$20
-$30
-$40 - correct answer ✔✔$20
Which of the following results in a shortage?
-binding price ceiling
-binding price floor
-non-binding price ceiling
-non-binding price floor
-both binding and non-binding price ceiling
-both binding and non-binding price floor - correct answer ✔✔Binding price ceiling
A government introduced a binding price floor. As a result:
-efficiency will increase
-efficiency will decrease
-efficiency will stay the same - correct answer ✔✔Efficiency will decrease
The actual price of chicken is $4. The government tells that the maximum price of chicken should be $5. This is an example of:
-binding price ceiling
-binding price floor non-binding price ceiling
non-binding price floor - correct answer ✔✔Non-binding price ceiling
Suppose there are no price control on the market. It is currently experiencing a surplus. This suggests that the price will:
-increase
-decrease
-stay the same - correct answer ✔✔Decrease
Which of the following words describes what economics is about best:
-money
-unemployment
-choice
-government - correct answer ✔✔Choice
Good X is a substitute in production for good Y . Suppose the price of X increased. What will happen to the equilibrium quantity of good Y?
-increase
-decrease
-change ambiguously - correct answer ✔✔Decrease
Good X is a complement for good Y . Suppose the price of X increased. What will happen to the equilibrium price of good Y?
-increase
-decrease
-change ambiguously - correct answer ✔✔Decrease Supposed a price of good X increased. Holding everything else constant the producer surplus will
-increase
-decrease
-stay the same - correct answer ✔✔Increase
Computers and software are complements. Suppose the price of computers increased. What is going to happen to producer surplus on the software market. It will:
-increase
-decrease
-stay the same
-change ambiguously - correct answer ✔✔Decrease
Substitutes are goods that:
-can be used one instead of the other
-are used together
-we consume more of when income increases
-we consume less of when income increases - correct answer ✔✔can be used one instead of the other
Suppose taxes on candy increased. And at the same time the research on health effects of candy makes it less popular. The following is likely to happen with the price on the candy market:
-it will increase
-it will decrease
-the change in price will be ambiguous - correct answer ✔✔the change in price will be ambiguous
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