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ECON 2100- Final Exam questions and answers.
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ECON 2100- Final Exam questions and answers.
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ECON 2100- Final Examquestions and answers
In economics, man-made resources such as tools, equipment, and
structures that are used to produce other goods and services are referred
to as - answer capital
Corn and soybeans are alternatives that could be grown by most farmers.
If government subsidies for ethanol lead to higher corn prices, this will -
answer decrease the supply of soybeans
The production possibilities curve illustrates the basic principle that -
answer if the resources of an economy are being used efficiently, more of
one good can be produced only if less of another is produced
Which of the following is an example of a rational decision - answer Jayla,
a burglar who breaks into houses, decides to break into the house at 265
Elm Street, rather than the house next door because the house next door
has a sign in the yard that says "home protected by a security system
Which of the following is not a function of prices in a market system -
answer Prices ensure an equitable distribution of goods and services
among consumers
Which of the following is a positive economic statement - answer If taxes
are over 50 percent of national income, job creation falls
Which of the following is most likely to lead to an increase in the rental
price of apartments near your campus - answer an unexpected increase in
enrollment at your college
According to the law of supply - answer producers are willing to supply
larger amounts of a good as its price increases
,According to the law of comparative advantage, both individuals and
nations will be able to produce a larger joint output if each productive
activity is undertaken by - answer the low opportunity cost producer
Middlemen are individuals who - answer provide services that reduce the
cost of transactions and help achieve additional gains from trade
Suppose a new law requires all piercing studios to pass tougher licensing
tests and to begin using more costly sterilization methods. Other things
constant, this law would cause - answer a decrease in the supply of
piercings and a higher price for piercings.
Which of the following statements about exchange is false - answer If one
trading partner gains, the other must lose.
Which of the following is true regarding value and exchange? - answer
Voluntary exchange creates value by channeling goods into the hands of
people who value them most.
A point inside the production possibilities curve represents a combination
of goods that is - answer unattainable
A decrease in the expected future price of a good will cause the current
demand for the good to - answer increase, which is a shift to the left of
the demand curve
The equilibrium market price of coffee would be - answer $6 per pound
Which of the following events would increase producer surplus - answer
Sellers' costs stay the same and the price of the good increases
Refer to Table 2-3. The opportunity cost of 1 pound of meat for the farmer
is - answer 4 pounds of potatoes
, The value of a good - answer depends on many factors, including who uses
it and under what circumstances
Entrepreneurs have a strong incentive to - answer do all of the above
If consumer purchases of a good are not very sensitive to the price of the
good, economists say the demand for the good is relatively - answer
inelastic
The economic way of thinking stresses that - answer incentives matter--
when an option becomes less costly, people will be more likely to choose it
If the citizens of a country were to work harder and take less leisure time,
it would - answer shift the production possibilities curve outward
Market prices generally promote social cooperation because they - answer
clarify the options available to people and encourage individuals to help
others in exchange for income
Criteria for rationing goods and resources must be established because of
- answer scarcity imposed by nature.
When economists say the supply of a product has increased, they mean
the - answer supply curve has shifted to the right.
Which of the following will cause a decrease in the demand for peanut
butter? - answer a doubling in the price of bread
Refer to Table 3-2. If the market price is $1,100, the combined total cost of
all participating sellers is - answer $2,250.
If there is an increase in both the supply and demand for a good, which of
the following will definitely occur? - answer The equilibrium quantity will
increase.
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