Final Exam

A  Price increases and quantity decreases

B  Price is unclear and quantity decreases

C  Price is unchanged and quantity is unchanged

D  Price and quantity both decrease

A  Price is unchanged and quantity is unchanged

B  Price increases and quantity decreases

C  Price and quantity both decrease

D  Price is unclear and quantity decreases

A  Increases

B  Unclear

C  Decreases

D  Unchanged

A  P increases; Q decreases

B  P and Q both decrease

C  P is unchanged; Q is unchanged

D  P is unchanged; Q increases

A  Unclear

B  Decreases

C  Increases

D  Unchanged

A  P=MC

B  MR=MC

C  P=ATC

D  None of the above

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

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

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

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

A  Q=q

B  It tends to have some barrier to entry

C  Its profits are affected by changes in tastes and preferences

D  All of the above characterize a monopoly

A  FALSE

B  TRUE

A  There are no fixed costs

B  Firms will enter in the long run

C  Firms will close in the short run

D  The price above represents the long run equilibrium

A  FALSE

B  TRUE

A  change nothing

B  increase the price

C  decrease its output

D  increase its output

A  There will be more than 100 firms in this market

B  The market price will go up

C  The market will transform into a monopoly

D  Fifteen firms will leave the market

A  4

B  5

C  3

D  1

A  $700

B  $200

C  Not enough information

D  $500

A  $200

B  $50

C  $500

D  $100

A  $75

B  $62.50

C  $31.25

D  $40

A  FALSE

B  TRUE

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

B  It assumes people are rational

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

D  It incorporates physics into economic thought

A  Confirmation bias

B  Framing bias

C  Planning fallacy

D  Availability bias

A  Availability bias

B  Framing bias

C  Planning fallacy

D  Confirmation bias

A  Availability bias

B  Overconfidence bias

C  Planning fallacy

D  Framing bias

A  The branch of economics that incorporates psychology into economic models

B  A part of microeconomics focused on supply and demand

C  The branch of economics that includes anthropology in economic models

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

A  It is inelastic

B  It is less than 0

C  It is greater than 0

D  None of the above

A  Complements

B  Unrelated

C  Substitutes

D  None of the above

A  Price would increase and quantity would decrease

B  Price would decrease and quantity would increase

C  Price and quantity would decrease

D  Price and quantity would increase

A  The tax burden will fall completely on the sellers

B  The tax burden will fall mostly on the sellers

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

D  The tax burden will fall mostly on the buyers

A  Increased tax burden on the sellers

B  Not enough information

C  Increased tax burden on the buyers

D  None of the above

A  Sellers will now pay more of the tax

B  Unclear

C  No effect

D  Buyers will now pay more of the tax

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

B  The good has no substitutes

C  The good likely has many complements

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

A  Unchanged

B  Decrease in its magnitude

C  Increase in its magnitude

D  Unclear

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

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

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

D  The Price Elasticity of Supply

A  Stays the same

B  Increase

C  Unclear

D  Decrease

A  Consumers of this good are made happier by the tax

B  The price buyers pay decreases

C  The price sellers receive increases

D  The quantity decreases

A  Rent control

B  Minimum wage

C  Ad valorem subsidy

D  None of the above

A  $100

B  $75

C  $175

D  $150

A  Price floor

B  A Backstrom-Daldumyan Tariff

C  Tax

D  None of the above

A  A tax placed on a good or service

B  A limit on the quantity of a good or service

C  A legalized minimum price for a good or service

D  A legalized maximum price for a good or service

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

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

C  Price unclear, quantity decreases

D  Price increases, quantity unclear

A  There is a shortage of primary care doctors

B  There is an effective price floor applied in this market

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

D  Few people want primary care services

A  Unchanged

B  Increases

C  Decreases

D  Unclear

A  The price decreases while the quantity is unclear

B  The price increases while the quantity is unchanged

C  Both increase

D  Both decrease

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

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 what a country is capable of producing if it uses all its resources

D  None of the above

A  TRUE

B  FALSE

A  A tax on gas should be removed

B  The unemployment rate for November 2019 is 3.5%

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

D  The national government should increase its spending to increase GDP

A  TRUE

B  FALSE

A  Firms

B  Households

C  International traders

D  The government

A  The government can never improve on market outcomes

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

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

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

A  FALSE

B  TRUE

A  Decreases the explicit cost

B  Increases the opportunity cost

C  Increases the benefit

D  Decreases the benefit

A  The study of money, GDP and the stock market

B  The science of being boring at a national level

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

D  None of the above