Final Exam

A  Price increases and quantity decreases

B  Price and quantity both decrease

C  Price is unclear and quantity decreases

D  Price is unchanged and quantity is unchanged

A  Price is unclear and quantity decreases

B  Price and quantity both decrease

C  Price is unchanged and quantity is unchanged

D  Price increases and quantity decreases

A  Decreases

B  Unchanged

C  Unclear

D  Increases

A  P is unchanged; Q is unchanged

B  P and Q both decrease

C  P increases; Q decreases

D  P is unchanged; Q increases

A  Unchanged

B  Increases

C  Unclear

D  Decreases

A  P=ATC

B  MR=MC

C  P=MC

D  None of the above

A  It is yet another topic designed by your instructor to bore you

B  They are legal in only a few states in the US because of how damaging they are to a state’s poorer population

C  They tended to be blocked by states which had a monopoly on lotteries

D  They are far worse than regular savings accounts in every possible way which explains why no one uses PLSAs

A  Its profits are affected by changes in tastes and preferences

B  It tends to have some barrier to entry

C  Q=q

D  All of the above characterize a monopoly

A  TRUE

B  FALSE

A  There are no fixed costs

B  Firms will close in the short run

C  The price above represents the long run equilibrium

D  Firms will enter in the long run

A  FALSE

B  TRUE

A  change nothing

B  increase its output

C  decrease its output

D  increase the price

A  The market will transform into a monopoly

B  Fifteen firms will leave the market

C  The market price will go up

D  There will be more than 100 firms in this market

A  4

B  3

C  5

D  1

A  $700

B  $200

C  Not enough information

D  $500

A  $100

B  $50

C  $500

D  $200

A  $62.50

B  $75

C  $31.25

D  $40

A  TRUE

B  FALSE

A  It incorporates physics into economic thought

B  It assumes people are rational

C  It tries to use nudges to influence people’s choices for their benefit

D  Its supporters believe behavioral economics is a substitute for traditional economics

A  Framing bias

B  Availability bias

C  Planning fallacy

D  Confirmation bias

A  Framing bias

B  Confirmation bias

C  Availability bias

D  Planning fallacy

A  Overconfidence bias

B  Framing bias

C  Planning fallacy

D  Availability bias

A  The branch of economics that incorporates psychology into economic models

B  The study of how any form of human behavior is due to being rational

C  The branch of economics that includes anthropology in economic models

D  A part of microeconomics focused on supply and demand

A  It is less than 0

B  It is inelastic

C  It is greater than 0

D  None of the above

A  Complements

B  Substitutes

C  Unrelated

D  None of the above

A  Price would increase and quantity would decrease

B  Price and quantity would increase

C  Price would decrease and quantity would increase

D  Price and quantity would decrease

A  The tax burden will fall completely on the sellers

B  The tax burden will fall mostly on the buyers

C  The tax burden will fall equally on the sellers and buyers

D  The tax burden will fall mostly on the sellers

A  Increased tax burden on the buyers

B  Increased tax burden on the sellers

C  Not enough information

D  None of the above

A  Buyers will now pay more of the tax

B  No effect

C  Sellers will now pay more of the tax

D  Unclear

A  Buyers will buy the product even if the price rises by a small amount

B  An increase in the price will cause the revenue to decline

C  The good likely has many complements

D  The good has no substitutes

A  Increase in its magnitude

B  Decrease in its magnitude

C  Unclear

D  Unchanged

A  The change in quantity supplied from a given change in the price

B  The unit change in quantity supplied from a $1 increase in the price

C  The Price Elasticity of Supply

D  The percentage change in quantity supplied from a 1% increase in the price

A  Decrease

B  Increase

C  Unclear

D  Stays the same

A  The price sellers receive increases

B  The quantity decreases

C  The price buyers pay decreases

D  Consumers of this good are made happier by the tax

A  Rent control

B  Ad valorem subsidy

C  Minimum wage

D  None of the above

A  $150

B  $175

C  $100

D  $75

A  Price floor

B  A Backstrom-Daldumyan Tariff

C  Tax

D  None of the above

A  A legalized minimum price for a good or service

B  A legalized maximum price for a good or service

C  A limit on the quantity of a good or service

D  A tax placed on a good or service

A  Price unclear, quantity decreases

B  Price increases, quantity unclear

C  Supply curve shifts to the right; Demand curve shifts to the right

D  Supply curve shifts to the right; Demand curve shifts to the left

A  Few people want primary care services

B  There is a shortage of primary care doctors

C  The number of people who want to become primary care doctors far exceeds the demand

D  There is an effective price floor applied in this market

A  Increases

B  Decreases

C  Unclear

D  Unchanged

A  The price decreases while the quantity is unclear

B  Both increase

C  The price increases while the quantity is unchanged

D  Both decrease

A  The curve that tells us what a country is capable of producing if it uses all its resources

B  The curve that tells us how much a certain economics instructor’s enrollment will fall when the students realize how boring he is

C  The curve that tells us the quantity demanded at a given price

D  None of the above

A  TRUE

B  FALSE

A  A tax causes a decline in the quantity of a good or service

B  A tax on gas should be removed

C  The national government should increase its spending to increase GDP

D  The unemployment rate for November 2019 is 3.5%

A  TRUE

B  FALSE

A  Firms

B  The government

C  Households

D  International traders

A  When you decided whether to take this class, you did not need to consider alternative uses of your time

B  An increase in a country’s income means its education level will fall

C  The best way to allocate resources is for the supply to follow the demand

D  The government can never improve on market outcomes

A  FALSE

B  TRUE

A  Increases the opportunity cost

B  Decreases the benefit

C  Decreases the explicit cost

D  Increases the benefit

A  The study of decision-making of how to distribute scarce resources by individual people and firms

B  The study of money, GDP and the stock market

C  The science of being boring at a national level

D  None of the above