Econ 1002 - Study guides, Class notes & Summaries

Suppose that as the price of Y falls from $2.00 to $1.90, the quantity of Y demanded increases from 110 to 118. Then the absolute value of the price elasticity (using the midpoint formula) is - correct answer 1.37 An antidrug policy that reduces the supply of heroin might - correct answer increase street crime because the addict's demand for heroin is highly inelastic. How is elasticity determined on a graph - correct answer The steeper the slope the more elastic, the more gradient the sl...

Econ 1002 Test Review Chapters 10

ECON1002: Microeconomics Exam2 1. If many people in a community install fire hydrants, the whole community benefits including those that did not install it. Therefore, not enough people may decide to install the fire hydrant. This is one illustration of: A. The market allocating resources efficiently B. Monopoly power due to lack of competition C. Supply-side market failure D. Demand-side market failure 2. When a private firm provides fireworks, it could not produce the efficient amount of it be...

ECON0002 TERM 1 ACTUAL EXAM BANK / 250+ QUESTIONS AND VERIFIED SOLUTIONS 2024/2025 GRADED A+. 2 / 14 1. What is the 90/10 ratio?: average income of the richest 10% divided by theaverage income of the poorest 90% 2. What does disposable income not measure?: quality of social and physicalenvironment, amount of free time, goods and services you can't buy, goods andservices that are produced within the household 3. How to calculate nominal gdp?: sum of (price of good i x quantity of good ...

For a given level of inflation, if bright prospects for the future of the economy cause businesses to increase their spending on new capital, then the _____ shifts _____. - aggregate demand curve; right - aggregate demand curve; left - aggregate supply line; upward - aggregate supply line; downward correct answer: - aggregate demand curve; right Policymakers' use of stabilisation policy to eliminate output gaps is more appropriate when an economy self-corrects very _____ and when the ou...

ECON 1002 EXAM ( WALDEN UNI ) QNS & ANS .

ECON-1002-1 Applying The Supply and Demand ModelApplying The Supply and Demand ModelWalden UniversityECON-1002-1Applying The Supply and Demand Modelï‚·Over the past 10-20 years, the use of landline phones has fallen while the use of cell phones and smartphones has increased. Explain how changes in consumer tastes and preferences are affecting the demand functions for each product. Draw graphs for each of the two products (landlines and cell phones/smartphones) illustrating what has happened ...

1. If many people in a community install fire hydrants, the whole community benefits including those that did not install it. Therefore, not enough people may decide to install the fire hydrant. This is one illustration of: A. The market allocating resources efficiently B. Monopoly power due to lack of competition C. Supply-side market failure D. Demand-side market failure 2. When a private firm provides fireworks, it could not produce the efficient amount of it because it is unable to c...

ECON 1002 EXAM ( WALDEN UNI ) QNS & ANS

Exam (elaborations) ECON 1002 Microeconomics Walden TEST BANK Questions and Answers