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