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ECO213 Midterm Review TFC Questions with Answers 100% Verified Correct|
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ECO213 Midterm Review TFC Questions with Answers 100% Verified Correct|
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ECO213 Midterm Review TFC Questions withAnswers 100% Verified Correct|
An example of a positive economic statement is, An increase in the price of a product
causes consumers to purchase more of that product.
True or False - ✔✔False
Ceteris paribus means other things constant.
True or False - ✔✔True
Government antitrust laws were designed to
a) prevent natural monopolies
b) correct the outcomes of positive and negative externalities in private markets
c) encourage the production of public goods
d) prevent collusion among firms
e) regulate natural monopolies - ✔✔d) prevent collusion among firms
A point outside the production possibilities frontier
a) represents unemployment of resources
b) cannot be reached using the available technology
c) would not represent an efficient combination of goods
,d) represents full employment of resources
e) is less desirable than one that lies inside the frontier - ✔✔b) cannot be reached
using the available technology
More elastic means
a) more desirable
b) less responsive
c) unchanging
d) more responsive
e) less desirable - ✔✔d) more responsive
A decrease in demand for a good could mean that
a) consumers are willing to buy larger quantities of the good at each price
b) the demand curve has undergone a parallel shift to the right
c) the demand curve has shifted to the left
d) the demand curve has undergone a nonparallel shift to the right
e) consumers are willing to pay a higher price for each quantity of the good - ✔✔c)
the demand curve has shifted to the left
A decrease in the supply of chocolate chips would usually result in a
a) decrease in the demand for chocolate chips
b) lower equilibrium price and a lower equilibrium quantity
c) lower equilibrium price and a higher equilibrium quantity
, d) higher equilibrium price and a lower equilibrium quantity
e) higher equilibrium price and a higher equilibrium quantity - ✔✔d) higher
equilibrium price and a lower equilibrium quantity
A government-imposed price floor above the market price of milk would increase
consumers expenditures on milk only if
a) demand falls
b) supply is inelastic
c) demand is elastic
d) demand is inelastic
e) supply is unit elastic - ✔✔d) demand is inelastic
A normal good is defined as a product for which quantity demanded increases as price
decreases.
True or False? - ✔✔False
Demand is inelastic if
a) the percentage change in price is equal to the percentage change in quantity
demanded
b) the value of price elasticity is less than -1 (e.g., -3)
c) the value of price elasticity is equal to -1
d) the percentage change in price is less than the percentage change in quantity
demanded
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