Navigation » List of Schools » Los Angeles Valley College » Economics » Econ 001 – Principles of Economics » Winter 2020 » Final Exam
Below are the questions for the exam with the choices of answers:
Question #1
A Price and quantity both decrease
B Price is unclear and quantity decreases
C Price is unchanged and quantity is unchanged
D Price increases and quantity decreases
Question #2
A Price is unclear and quantity decreases
B Price is unchanged and quantity is unchanged
C Price increases and quantity decreases
D Price and quantity both decrease
Question #3
A Decreases
B Unchanged
C Increases
D Unclear
Question #4
A P is unchanged; Q increases
B P and Q both decrease
C P increases; Q decreases
D P is unchanged; Q is unchanged
Question #5
A Increases
B Unclear
C Decreases
D Unchanged
Question #6
A P=MC
B MR=MC
C P=ATC
D None of the above
Question #7
A They are far worse than regular savings accounts in every possible way which explains why no one uses PLSAs
B It is yet another topic designed by your instructor to bore you
C They are legal in only a few states in the US because of how damaging they are to a state’s poorer population
D They tended to be blocked by states which had a monopoly on lotteries
Question #8
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
Question #9
A FALSE
B TRUE
Question #10
A Firms will enter in the long run
B There are no fixed costs
C The price above represents the long run equilibrium
D Firms will close in the short run
Question #11
A FALSE
B TRUE
Question #12
A increase the price
B increase its output
C decrease its output
D change nothing
Question #13
A The market will transform into a monopoly
B The market price will go up
C There will be more than 100 firms in this market
D Fifteen firms will leave the market
Question #14
A 5
B 3
C 1
D 4
Question #15
A $200
B $500
C $700
D Not enough information
Question #16
A $500
B $200
C $100
D $50
Question #17
A $31.25
B $40
C $62.50
D $75
Question #18
A TRUE
B FALSE
Question #19
A It incorporates physics into economic thought
B It assumes people are rational
C Its supporters believe behavioral economics is a substitute for traditional economics
D It tries to use nudges to influence people’s choices for their benefit
Question #20
A Framing bias
B Confirmation bias
C Planning fallacy
D Availability bias
Question #21
A Planning fallacy
B Confirmation bias
C Availability bias
D Framing bias
Question #22
A Overconfidence bias
B Framing bias
C Planning fallacy
D Availability bias
Question #23
A The study of how any form of human behavior is due to being rational
B The branch of economics that incorporates psychology into economic models
C The branch of economics that includes anthropology in economic models
D A part of microeconomics focused on supply and demand
Question #24
A It is inelastic
B It is greater than 0
C It is less than 0
D None of the above
Question #25
A Substitutes
B Unrelated
C Complements
D None of the above
Question #26
A Price and quantity would decrease
B Price and quantity would increase
C Price would increase and quantity would decrease
D Price would decrease and quantity would increase
Question #27
A The tax burden will fall mostly on the buyers
B The tax burden will fall equally on the sellers and buyers
C The tax burden will fall mostly on the sellers
D The tax burden will fall completely on the sellers
Question #28
A Not enough information
B Increased tax burden on the buyers
C Increased tax burden on the sellers
D None of the above
Question #29
A Buyers will now pay more of the tax
B Sellers will now pay more of the tax
C Unclear
D No effect
Question #30
A An increase in the price will cause the revenue to decline
B The good likely has many complements
C Buyers will buy the product even if the price rises by a small amount
D The good has no substitutes
Question #31
A Decrease in its magnitude
B Unclear
C Increase in its magnitude
D Unchanged
Question #32
A The percentage change in quantity supplied from a 1% increase 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 change in quantity supplied from a given change in the price
Question #33
A Increase
B Decrease
C Unclear
D Stays the same
Question #34
A The quantity decreases
B The price buyers pay decreases
C The price sellers receive increases
D Consumers of this good are made happier by the tax
Question #35
A Minimum wage
B Rent control
C Ad valorem subsidy
D None of the above
Question #36
We have the following table for humidifiers:
Price Quantity supplied Quantity demanded
$200 3,500 0
$175 3,000 0
$150 2,500 500
$125 2,000 1,000
$100 1,500 1,500
$75 1,000 2,000
$50 500 2,500
$25 0 3,000
$0 0 3,500
What is the equilibrium price?
A $175
B $75
C $150
D $100
Question #37
A Tax
B Price floor
C A Backstrom-Daldumyan Tariff
D None of the above
Question #38
A A limit on the quantity of a good or service
B A legalized maximum price for a good or service
C A tax placed on a good or service
D A legalized minimum price for a good or service
Question #39
A Price increases, quantity unclear
B Price unclear, quantity decreases
C Supply curve shifts to the right; Demand curve shifts to the left
D Supply curve shifts to the right; Demand curve shifts to the right
Question #40
A There is an effective price floor applied in this market
B Few people want primary care services
C There is a shortage of primary care doctors
D The number of people who want to become primary care doctors far exceeds the demand
Question #41
A Unclear
B Increases
C Decreases
D Unchanged
Question #42
A The price decreases while the quantity is unclear
B Both decrease
C The price increases while the quantity is unchanged
D Both increase
Question #43
A The curve that tells us the quantity demanded at a given price
B The curve that tells us what a country is capable of producing if it uses all its resources
C The curve that tells us how much a certain economics instructor’s enrollment will fall when the students realize how boring he is
D None of the above
Question #44
A FALSE
B TRUE
Question #45
A A tax causes a decline in the quantity of a good or service
B The national government should increase its spending to increase GDP
C A tax on gas should be removed
D The unemployment rate for November 2019 is 3.5%
Question #46
A TRUE
B FALSE
Question #47
A Firms
B Households
C The government
D International traders
Question #48
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
Question #49
A TRUE
B FALSE
Question #50
A Decreases the explicit cost
B Decreases the benefit
C Increases the opportunity cost
D Increases the benefit
Question #51
A The science of being boring at a national level
B The study of decision-making of how to distribute scarce resources by individual people and firms
C The study of money, GDP and the stock market
D None of the above