Exam (elaborations)
RUTGERS MICRO EXAM 1 QUESTIONS AND ANSWERS 2024
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RUTGERS MICRO EXAM 1 QUESTIONS AND ANSWERS 2024
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RUTGERS MICRO EXAM 1what factor would result solely in a movement along the demand curve for a
particular good? - ANSWERS-a change in the price of that good
other things being equal, when the price of hamburgers increases, the Ruiz family
increases their purchase of hot dogs. we can therefore conclude that, for the Ruiz
family, - ANSWERS-hamburgers and hot dogs are substitutes
T or F:
a perfectly inelastic demand curve for insulin would mean that the quantity
demanded DOES NOT respond at all to changes in the price of insulin - ANSWERS-
true
consider two competing motorcycle manufacturers, Harley-Davidson and Honda.
If Harley-Davidson raises the price of its motorcycles, we can expect: - ANSWERS-
a shift to the right in the demand curve for Hondas and higher prices for Hondas
Betsy loves to garden, and her rose garden is enjoyed by everyone in her
neighborhood. because her consumption of rosebushes provides a positive
externality to the community, the government should _____ because the market
quantity of rose bushes is _____ than the socially optimal quantity. - ANSWERS-
provide a subsidy; lower
, a marginal change is a - ANSWERS-small incremental adjustment
when the percentage change in quantity demanded is larger than the percentage
change in price, demand is said to be: - ANSWERS-price-elastic
if the income elasticity of a demand for a good is _____, the good is said to be
_____ - ANSWERS-negative; inferior
T or F:
a good is excludable if non-payers can be prevented from consuming it -
ANSWERS-true
if the economy booms and peoples' income rise, then the demand curve for a
normal good like new houses will _____ and the equilibrium quantity of new
houses produced will _____ - ANSWERS-shift to the right; increase
the incidence of a tax: - ANSWERS-refers to how much of the tax is actually paid
by consumers and producers
points beyond the production-possibility frontier - ANSWERS-are unattainable
with current resources
the circular-flow diagram shows the flow of ____ and the flow of _______ -
ANSWERS-money; goods and services
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