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