Navigation » List of Schools » Glendale Community College » Economics » Econ 101 – Microeconomics » Spring 2023 » Midterm
Below are the questions for the exam with the choices of answers:
Question #1
A 400
B 200
C 300
D 100
E 500
Question #2
A 880
B 660
C 400
D 600
E 500
Question #3
A increasing returns to scale at low levels of production and decreasing returns to scale at high levels of production
B fixed costs are decreasing at low levels of production but increasing at high levels of production
C the average variable cost curve increases at low levels of production but decreases at high levels of production
D fixed costs are increasing at low levels of production but decreasing at high levels of production
E decreasing returns to scale at low levels of production and specialization at high levels of production
Question #4
A products A and B are unrelated
B products A and B are substitutes, 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 complements, if the price falls for B the demand for A falls
E products A and B are complements, if the price falls for B the demand for A rises
Question #5
A 1
B 0.5
C -0.5
D 0
E None of these
Question #6
A An item that consumers can quickly and easily change their consumption of
B Necessity
C An item with many substitutes
D Luxury
E An item that represents a large portion of consumers’ income
Question #7
A Ed = 0.9, demand is inelastic
B b. Ed = 0.4, demand is elastic
C Ed = 0.4, demand is inelastic
D Ed = 0.9, demand is elastic
E Ed = 2.3, demand is elastic
Question #8
A increasing taxes
B increasing interest rates
C cutting subsidies for the agriculture industry
D decreasing taxes
E a public works project to rebuild a bridge
Question #9
A A tax on producers
B None of these
C A subsidy to buyers
D All of these
E A subsidy to producers
Question #10
A 60,000 – which is less than the societally optimal amount since education is a positive externality
B 30,000 – which is more than the societally optimal amount since education is a positive externality
C 60,000 – which is more than the societally optimal amount since education is a positive externality
D 30,000 – which is less than the societally optimal amount since education is a positive externality
E 30,000 – which is less than the societally optimal amount since education is a negative externality
Question #11
A quantity sold decreases, price may increase or decrease
B price increases, quantity sold may increase or decrease
C quantity sold increases, price may increase or decrease
D price decreases, quantity sold increases
E price decreases, quantity sold may increase or decrease
Question #12
A price increases, quantity sold decreases
B price decreases, quantity sold increases
C price increases, quantity sold increases
D price decreases, quantity sold may increase or decrease
E price decreases, quantity sold decreases
Question #13
A the price of gas increases
B the price of bicycles increases
C None of these
D the price of bicycles decreases
E the price of gas decreases
Question #14
A $600 and 22m
B $800 and 5m
C $800 and 16m
D $600 and 12m
E $400 and 16m
Question #15
A The cost of gas increases.
B The government provides Toyota a subsidy for each car produced.
C The price of steel used in the production of Priuses increases.
D Consumers realize the Prius is a slow and tacky vehicle.
E The price of Toyota Priuses rises.
Question #16
A firms buy resources/labor from households and households sell resources/labor to firms.
B households buy resources/labor from firms and firms sell resources/labor to households.
C All of the choices
D None of the choices
Question #17
A Monetary incentives exist for entrepreneurs who bear risk.
B Neither are characteristic of a market economy.
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 Individuals, not the government, own the factors of production.