Final Exam

A  Price is unclear and quantity decreases

B  Price increases and quantity decreases

C  Price and quantity both decrease

D  Price is unchanged and quantity is unchanged

A  Price increases and quantity decreases

B  Price and quantity both decrease

C  Price is unchanged and quantity is unchanged

D  Price is unclear and quantity decreases

A  Unclear

B  Unchanged

C  Increases

D  Decreases

A  P is unchanged; Q is unchanged

B  P is unchanged; Q increases

C  P and Q both decrease

D  P increases; Q decreases

A  Unchanged

B  Increases

C  Decreases

D  Unclear

A  P=ATC

B  P=MC

C  MR=MC

D  None of the above

A  It is yet another topic designed by your instructor to bore you

B  They are legal in only a few states in the US because of how damaging they are to a state’s poorer population

C  They are far worse than regular savings accounts in every possible way which explains why no one uses PLSAs

D  They tended to be blocked by states which had a monopoly on lotteries

A  It tends to have some barrier to entry

B  Q=q

C  Its profits are affected by changes in tastes and preferences

D  All of the above characterize a monopoly

A  TRUE

B  FALSE

A  Firms will enter in the long run

B  The price above represents the long run equilibrium

C  Firms will close in the short run

D  There are no fixed costs

A  TRUE

B  FALSE

A  increase the price

B  change nothing

C  increase its output

D  decrease its output

A  Fifteen firms will leave the market

B  The market price will go up

C  The market will transform into a monopoly

D  There will be more than 100 firms in this market

A  1

B  5

C  4

D  3

A  $200

B  Not enough information

C  $500

D  $700

A  $100

B  $50

C  $500

D  $200

A  $31.25

B  $75

C  $62.50

D  $40

A  FALSE

B  TRUE

A  It tries to use nudges to influence people’s choices for their benefit

B  It assumes people are rational

C  It incorporates physics into economic thought

D  Its supporters believe behavioral economics is a substitute for traditional economics

A  Planning fallacy

B  Framing bias

C  Availability bias

D  Confirmation bias

A  Availability bias

B  Planning fallacy

C  Confirmation bias

D  Framing bias

A  Availability bias

B  Planning fallacy

C  Overconfidence bias

D  Framing bias

A  A part of microeconomics focused on supply and demand

B  The branch of economics that incorporates psychology into economic models

C  The branch of economics that includes anthropology in economic models

D  The study of how any form of human behavior is due to being rational

A  It is greater than 0

B  It is inelastic

C  It is less than 0

D  None of the above

A  Complements

B  Substitutes

C  Unrelated

D  None of the above

A  Price would increase and quantity would decrease

B  Price and quantity would decrease

C  Price would decrease and quantity would increase

D  Price and quantity would increase

A  The tax burden will fall mostly on the sellers

B  The tax burden will fall equally on the sellers and buyers

C  The tax burden will fall completely on the sellers

D  The tax burden will fall mostly on the buyers

A  Not enough information

B  Increased tax burden on the buyers

C  Increased tax burden on the sellers

D  None of the above

A  Unclear

B  Buyers will now pay more of the tax

C  No effect

D  Sellers will now pay more of the tax

A  The good likely has many complements

B  An increase in the price will cause the revenue to decline

C  The good has no substitutes

D  Buyers will buy the product even if the price rises by a small amount

A  Unchanged

B  Increase in its magnitude

C  Unclear

D  Decrease in its magnitude

A  The change in quantity supplied from a given change in the price

B  The unit change in quantity supplied from a $1 increase in the price

C  The Price Elasticity of Supply

D  The percentage change in quantity supplied from a 1% increase in the price

A  Increase

B  Decrease

C  Stays the same

D  Unclear

A  The price sellers receive increases

B  Consumers of this good are made happier by the tax

C  The price buyers pay decreases

D  The quantity decreases

A  Rent control

B  Minimum wage

C  Ad valorem subsidy

D  None of the above

A  $100

B  $75

C  $175

D  $150

A  A Backstrom-Daldumyan Tariff

B  Tax

C  Price floor

D  None of the above

A  A tax placed on a good or service

B  A legalized maximum price for a good or service

C  A limit on the quantity of a good or service

D  A legalized minimum price for a good or service

A  Price unclear, quantity decreases

B  Price increases, quantity unclear

C  Supply curve shifts to the right; Demand curve shifts to the right

D  Supply curve shifts to the right; Demand curve shifts to the left

A  There is a shortage of primary care doctors

B  Few people want primary care services

C  There is an effective price floor applied in this market

D  The number of people who want to become primary care doctors far exceeds the demand

A  Increases

B  Unchanged

C  Decreases

D  Unclear

A  The price increases while the quantity is unchanged

B  Both decrease

C  Both increase

D  The price decreases while the quantity is unclear

A  The curve that tells us how much a certain economics instructor’s enrollment will fall when the students realize how boring he is

B  The curve that tells us what a country is capable of producing if it uses all its resources

C  The curve that tells us the quantity demanded at a given price

D  None of the above

A  TRUE

B  FALSE

A  A tax on gas should be removed

B  The unemployment rate for November 2019 is 3.5%

C  The national government should increase its spending to increase GDP

D  A tax causes a decline in the quantity of a good or service

A  FALSE

B  TRUE

A  Firms

B  Households

C  The government

D  International traders

A  An increase in a country’s income means its education level will fall

B  The best way to allocate resources is for the supply to follow the demand

C  When you decided whether to take this class, you did not need to consider alternative uses of your time

D  The government can never improve on market outcomes

A  FALSE

B  TRUE

A  Increases the benefit

B  Increases the opportunity cost

C  Decreases the benefit

D  Decreases the explicit cost

A  The science of being boring at a national level

B  The study of decision-making of how to distribute scarce resources by individual people and firms

C  The study of money, GDP and the stock market

D  None of the above