Navigation » List of Schools » Los Angeles Valley College » Economics » Econ 001 – Principles of Economics » Winter 2020 » Exam 1
Below are the questions for the exam with the choices of answers:
Question #1
A The price increases a lot but the quantity increases only a little
B The price decreases and the quantity increases
C The price increases a lot but the quantity falls by a lot
D The price increases a little but the quantity increases a lot
Question #2
A Increases
B Stays the same
C Unclear
D Decreases
Question #3
A Sellers pay the entire tax
B Government obtains more revenue
C Price buyers pay decreases
D None of the above
Question #4
A PES is elastic
B An increase in price causes an increase in total revenue
C An increase in price causes a huge increase in supply
D None of the above
Question #5
A There will be no equilibrium price in this market
B The supply does not shift if there are more sellers
C The supply curve is downward sloping
D The supply is not affected by changes in price
Question #6
A The quantity demanded is not very responsive to a change in the price
B The demand curve is flat and downward sloping
C A decrease in costs will cause a greater change in the quantity than in the price
D An increase in tastes and preferences will cause a greater change in the quantity than the price
Question #7
A More elastic
B More cosmetic
C More inelastic
D None of the above
Question #8
A The implementation of an effective price floor on the market
B Buyers’ income increases
C Buyers’ income increases and sellers expect the price to increase
D Tastes and preferences move away from the product
Question #9
A Decreases
B Unclear
C Stays the same
D Increases
Question #10
A Decreases
B Increases
C Stays the same
D Unclear
Question #11
A The quantity supplied does not change much when price increases
B PES for toddler walkers is inelastic
C An increase in tastes and preferences will cause a greater change in the quantity than the price
D A decrease in costs will cause a greater change in the price than in the quantity
Question #12
A Its demand curve is steep and downward sloping
B The good likely has many substitutes
C The good has no complements
D Buyers will buy the product even if the price rises by a large amount
Question #13
A Unclear
B Increase in its magnitude (that is, its absolute value)
C Decrease in its magnitude (that is, its absolute value)
D Unchanged
Question #14
A The change in quantity supplied from a given change in the price
B The Price Elasticity of Supply
C The unit change in quantity supplied from a $1 increase in the price
D The percentage change in quantity supplied from a 1% increase in the price
Question #15
A Unclear
B Decrease
C Stays the same
D Increase
Question #16
A Consumers of this good are made happier by the tax
B The quantity increases
C The price sellers receive decreases
D The price buyers pay decreases
Question #17
A Markets are usually the best way to allocate resources
B People face tradeoffs
C Decisions are often marginal
D None of the above
Question #18
A A price floor has been applied
B There will be a long waiting list to get a kidney
C The government’s policy will cause the supply curve of kidneys to shift
D The PED has increased in magnitude
Question #19
A 4,000
B 3,500
C 2,500
D 5,500
Question #20
We have the following table for humidifiers:
Price Quantity supplied Quantity demanded
$200 6,500 1,500
$175 6,000 2,000
$150 5,500 2,500
$125 5,000 3,000
$100 4,500 3,500
$75 4,000 4,000
$50 3,500 4,500
$25 3,000 5,000
$0 2,500 5,500
What is the equilibrium price?
A $75
B $125
C $150
D $175
Question #21
A Price falls and quantity is unclear
B Price rises and quantity rises
C Price rises and quantity is unclear
D None of the above
Question #22
A Price is unclear and quantity falls
B Price falls and quantity rises
C Price rises and quantity falls
D Price falls and quantity is unclear
Question #23
A Price rises and quantity is unclear
B Price falls and quantity falls
C Price is unclear and quantity is unclear
D None of the above
Question #24
A P is unclear and quantity falls
B Price is unclear and quantity is unclear
C Price increases and quantity increases
D Price falls and quantity is unclear
Question #25
A Price is unclear and quantity is unclear
B Price increases and quantity increases
C Price falls and quantity is unclear
D Price is unclear and quantity falls
Question #26
A Supply shift to the left
B Supply shift to the right
C Demand shift to the left
D Demand shift to the right
Question #27
A TRUE
B FALSE
Question #28
A The market has moved towards its new equilibrium so the shortage disappeared
B The market has moved from a shortage to surplus
C The market has had a shortage since then
D Marijuana in Colorado does not really make people feel hungry (nor stoned)
Question #29
A The curve telling us what a country is capable of producing if it uses all its resources
B The curve telling us how many puffs of marijuana are optimal at a given price
C The curve telling us the quantity supplied at a given price
D None of the above
Question #30
A A tax causes an increase in the price buyers pay for a good
B The tax burden is dependent on whom the tax is applied on
C The Trump tax cuts should be repealed
D The unemployment rate for November 2018 is 3.7%
Question #31
A It omits a sector of the economy known as the government
B It consists only of households without any firms or markets
C It looks bigger
D It looks more like a circle
Question #32
A TRUE
B FALSE
Question #33
A TRUE
B FALSE
Question #34
A When your teacher decided to teach this course, he must worry about alternative uses of his time
B An increase in a nation’s income means its life expectancy is going to fall
C To make a decision about whether to buy a textbook, I can just consider how helpful it will be
D To encourage more people to participate in the course discussions, I make each discussion worth fewer points
Question #35
A Trade is beneficial
B Income affecting the standard of living
C People respond to incentives
D Tradeoffs
Question #36
A FALSE
B TRUE
Question #37
A The opportunity cost of going to community college increases
B The Nazarov cost of going to community college decreases
C The explicit cost of going to community college increases
D The benefit of going to community college increases
Question #38
A Increases the benefit
B Increases the opportunity cost
C Decreases the benefit
D Decreases the explicit cost
Question #39
A Raising your grade in the course from getting a good grade on the exam
B Caring for a loved one
C Watching a TV show with your friends
D Studying for another course’s exam