Navigation » List of Schools » Glendale Community College » Economics » Econ 101 – Microeconomics » Fall 2022 » Midterm
Below are the questions for the exam with the choices of answers:
Question #1
A They would gain revenue from a small price decrease and they would lose revenue from a small price increase
B They would gain revenue from a small price increase and they would lose revenue from a small price decrease
C They would lose revenue from a small price increase
D They would gain revenue from a small price decrease
Question #2
A products A and B are complements, if the price falls for B the demand for A rises
B products A and B are unrelated
C products A and B are complements, if the price falls for B the demand for A falls
D products A and B are substitutes, if the price falls for B the demand for A rises
E products A and B are substitutes, if the price falls for B the demand for A falls
Question #3
A 1
B 0
C -0.5
D None of the choices
E 0.5
Question #4
A Luxury
B An item that consumers can quickly and easily change their consumption of
C An item with many substitutes
D An item that represents a large portion of consumers’ income
E Necessity
Question #5
A Ed = 2.3, demand is elastic
B Ed = 0.4, demand is elastic
C c. Ed = 0.9, demand is inelastic
D Ed = 0.4, demand is inelastic
E Ed = 0.9, demand is elastic
Question #6
A decreasing taxes
B cutting subsidies for the agriculture industry
C increasing interest rates
D a public works project to rebuild a bridge
E increasing taxes
Question #7
A A subsidy to buyers
B A subsidy to producers
C All of the choices
D A tax on producers
E None of the choices
Question #8
A 60,000 – which is more than the societally optimal amount since education is a positive externality
B 30,000 – which is less than the societally optimal amount since education is a positive externality
C 30,000 – which is less than the societally optimal amount since education is a negative externality
D 30,000 – which is more than the societally optimal amount since education is a positive externality
E 60,000 – which is less than the societally optimal amount since education is a positive externality
Question #9
A price decreases, quantity sold may increase or decrease
B quantity sold increases, price may increase or decrease
C price increases, quantity sold may increase or decrease
D price decreases, quantity sold increases
E quantity sold decreases, price may increase or decrease
Question #10
A price decreases, quantity sold decreases
B price increases, quantity sold increases
C price decreases, quantity sold increases
D price decreases, quantity sold may increase or decrease
E price increases, quantity sold decreases
Question #11
A the price of bicycles increases
B the price of gas decreases
C the price of bicycles decreases
D None of these choices
E the price of gas increases
Question #12
A $600 and 22m
B $800 and 5m
C $800 and 16m
D $400 and 16m
E $600 and 12m
Question #13
A The price of Toyota Priuses rises.
B The cost of gas increases.
C Consumers realize the Prius is a slow and tacky vehicle.
D The price of steel used in the production of Priuses increases.
E The government provides Toyota a subsidy for each car produced.
Question #14
A households buy resources/labor from firms.
B firms buy resources/labor from households and households sell resources/labor to firms.
C households buy resources/labor from firms and firms sell resources/labor to households
D firms sell resources/labor to households.
Question #15
A None of these choices
B Monetary incentives exist for entrepreneurs who bear risk.
C Individuals, not the government, own the factors of production.
D Goods and services are sold in a competitive way.
E Government services are limited to basic protections such as enforcing laws and protecting the public.