Navigation » List of Schools » Glendale Community College » Economics » Econ 101 – Microeconomics » Summer 2021 » Test 1
Below are the questions for the exam with the choices of answers:
Question #1
A rightward shift in supply and demand.
B leftward shift in demand keeping supply constant.
C leftward shift in supply keeping demand constant.
D rightward shift in demand and a leftward shift in supply.
Question #2
A The equilibrium price decreased, but we can’t tell what happened to the equilibrium quantity because we aren’t given any information about the relative size of the shifts in supply and demand in the market.
B The equilibrium price increased, but we can’t tell what happened to the equilibrium quantity because we aren’t given any information about the relative size of the shifts in supply and demand in the market.
C The equilibrium quantity increased, but we can’t tell what happened to the equilibrium price because we aren’t given any information about the relative size of the shifts in supply and demand in the market.
D The equilibrium quantity decreased, but we can’t tell what happened to the equilibrium price because we aren’t given any information about the relative size of the shifts in supply and demand in the market.
Question #3
A Excess demand
B excess production
C not enough information provided to answer the question
D excess supply
Question #4
A Student slot into Harvard Medical School
B Rare metal coins
C Lamborghini
D Chanel Shoes
Question #5
A Yes, because the marginal revenue from producing the additional shoe is greater than the marginal costs
B Not enough information provided to answer the question
C No, because Nike already lost $30,000,000 and it should cut its losses and look for additional opportunities
D No, because the additional profits from the sale of the shoe are miniscule compared to the losses in that year
Question #6
A no effect
B a shortage of apartments
C excess supply
D a surplus of apartments
Question #7
A the market price is above equilibrium
B the market price is below equilibrium
C price is most likely going to decline
D the market price is at the equilibrium price
Question #8
A no effect
B excess supply
C excess demand
D a surplus
Question #9
A the supply curve will shift again after demand meets supply
B the equilibrium price will increase
C the equilibrium quantity will fall
D the equilibrium price will decrease
Question #10
A None of the available answers
B A change in the price of the good in the model
C A change in income
D A change in taxes on consumers
Question #11
A Total expenditures will increase
B The total quantity will decline
C Total expenditures will decline
D Demand will decrease in the medical care market initially due to insurance premium costs, but will increase over the long term
Question #12
A FALSE
B TRUE
Question #13
A quantity of natural gas exports produced to increase.
B supply of natural gas exports to shift to the left.
C supply of natural gas exports to shift to the right.
D demand for natural gas exports to shift to the right.
Question #14
A A change in the price of the good
B A change in the price of a substitute good
C A change in advertising expenditures
D A change in society’s income
Question #15
A is the same as sunk cost.
B includes only monetary outlays.
C is the net benefit forgone by not undertaking the next best alternative.
D is nonexistent for some choices.
Question #16
A down, the quantity demanded goes down.
B up, the quantity demanded also goes up.
C up, the quantity demanded goes down.
D down, the quantity demanded stays the same.
Question #17
A falls, lowering their equilibrium price and raising equilibrium quantity.
B falls, lowering their equilibrium price and quantity.
C rises, raising their equilibrium price and quantity.
D falls, raising their equilibrium price and lowering equilibrium quantity.
Question #18
A an equilibrium price has been reached.
B an equilibrium quantity has been reached.
C we are considering changes in just one factor.
D we are considering all the changes which might take place in actual markets.
Question #19
A TRUE
B FALSE
Question #20
A the quantity demanded is in a direct relation with prices, whereas demand is in an inverse relation.
B the quantity demanded is represented graphically by a curve and demand as a point on that curve.
C demand is represented graphically by a curve and quantity demanded as a point on that curve.
D the quantity demanded is in an inverse relation with prices, whereas demand is in a direct relation.
Question #21
A marginal cost, sunk cost, and total benefit.
B total cost and total benefit.
C sunk cost and marginal cost.
D marginal cost and marginal benefit.
Question #22
A the demand curve will shift to the left.
B a shortage will develop.
C the supply curve will shift to the right.
D a surplus will develop.