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Home / My courses / Current Term (Term 1, 2016-2017) / ECON 1580 - AY2017-T1 / Final Exam (Days 1 - 4) / Review Quiz #1
Flag question b. it is possible to produce more of one good without producing less of another.
c. not possible to produce more of one good without producing less of another
good.
The correct answer is: not possible to produce more of one good without producing less of
another good.
Question Water is considered a scarce good rather than a free good because:
Correct
Mark 1.00 out of Select one:
1.00
a. it has alternative uses.
Flag question
b. it does not have alternative uses.
Question A curve that represents combinations of two goods that yield equal levels of satisfaction is
Correct a/an:
d. price-consumption curve.
Question When an increase in the firm's output reduces its long-run average cost, it experiences:
Correct
Select one:
Mark 1.00 out of
1.00 a. economies of scale.
d. A real estate agent who leaves a job in Texas and searches for a similar,
higher paying job in California.
The correct answer is: A geologist who is permanently laid off from an oil company due to a
new technological advance.
c. equal satisfaction.
d. increasing prices.
Question After graduation from college you will receive a substantial increase in your income from a
Correct new job. If you decide that you will purchase more T-bone steak and less hamburger, then for
you hamburger would be considered a/an:
Mark 1.00 out of
1.00
Select one:
Flag question
a. normal good.
b. substitute good.
c. complementary good.
d. inferior good.
c. sellers will, all other things unchanged, offer more on the market at higher
prices.
d. sellers will, all other things unchanged, offer less on the market at lower
prices.
The correct answer is: consumers will, all other things unchanged, buy more at lower prices.
Question The cross price elasticity of demand for Coke with respect to the price of Pepsi has been
Correct estimated to be 0.61. If the price of Pepsi falls by 10 percent in a period, how will that affect
the demand for Coke in that period, all other things unchanged?
Mark 1.00 out of
1.00
Select one:
Flag question
a. The demand for Coke will increase but by less than 6.1 percent.
c. The demand for Coke will not change because many people prefer Coke over
Pepsi.
The correct answer is: The demand for Coke will fall.
Question If total revenue goes down when price falls, the price elasticity of demand is said to be:
Correct
Select one:
Mark 1.00 out of
1.00 a. price inelastic.
c. price elastic.
d. positive.
Question A strategy that is the same regardless of the action of the other player in a game is said to be
Correct a:
c. dominant strategy.
d. tit-for-tat strategy.
The correct answer is: dominant strategy.
Question If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity
Correct demanded does not change, this indicates that, if other things are unchanged, the price
elasticity of demand is:
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1.00
Select one:
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a. 0.
b. -0.5.
c. -1.
d. -2.
Question Diminishing marginal returns for the first four units of a variable input is exhibited by the
Correct marginal product sequence:
Question An increase in demand in a perfectly competitive industry characterized by constant costs will
Correct cause a/an:
c. increase in the quantity supplied in the short run and an increase in market
supply in the long run.
d. decrease in firm's marginal revenue.
The correct answer is: increase in the quantity supplied in the short run and an increase in
market supply in the long run.
Flag question
b. factors of production are owned by the government but decisions are made
privately.
The correct answer is: factors of production are privately owned and decisions are made
privately.
Flag question b. sets marginal cost equal to marginal revenue rather than price.
The correct answer is: sets marginal cost equal to marginal revenue rather than price.
Question If consumer income, preferences, and the prices of all other goods remain constant while the
Correct price of X varies, the amount purchased of X is defined by the:
d. price line.
Question To determine whether an economy's output is growing or shrinking, one must keep track of:
Correct
Select one:
Mark 1.00 out of
1.00 a. changes in nominal GDP.
Question If the production possibilities curve were a straight line sloping down from left to right, this
Correct would suggest that:
The correct answer is: no factor of production has any particular comparative advantage over
other resources.
Question The BEST example of making a choice at the margin is:
Correct
Select one:
Mark 1.00 out of
1.00 a. buying a new car.
d. attending college.
The correct answer is: a coffee drinker drinking another cup of coffee.
Question If the slope of the total product curve is decreasing, the slope of the total variable cost curve
Correct is:
c. unchanged.
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