Final Exam

A  Price is unchanged and quantity is unchanged

B  Price and quantity both decrease

C  Price increases and quantity decreases

D  Price is unclear and quantity decreases

A  Price and quantity both decrease

B  Price increases and quantity decreases

C  Price is unclear and quantity decreases

D  Price is unchanged and quantity is unchanged

A  Increases

B  Decreases

C  Unchanged

D  Unclear

A  P increases; Q decreases

B  P is unchanged; Q is unchanged

C  P and Q both decrease

D  P is unchanged; Q increases

A  Unchanged

B  Decreases

C  Unclear

D  Increases

A  MR=MC

B  P=MC

C  P=ATC

D  None of the above

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

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

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

A  It tends to have some barrier to entry

B  Q=q

C  Its profits are affected by changes in tastes and preferences

D  All of the above characterize a monopoly

A  TRUE

B  FALSE

A  Firms will close in the short run

B  The price above represents the long run equilibrium

C  Firms will enter in the long run

D  There are no fixed costs

A  FALSE

B  TRUE

A  decrease its output

B  change nothing

C  increase 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  5

B  3

C  1

D  4

A  $500

B  Not enough information

C  $200

D  $700

A  $50

B  $500

C  $200

D  $100

A  $31.25

B  $62.50

C  $75

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 incorporates physics into economic thought

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

A  Availability bias

B  Confirmation bias

C  Framing bias

D  Planning fallacy

A  Confirmation bias

B  Framing bias

C  Availability bias

D  Planning fallacy

A  Overconfidence bias

B  Planning fallacy

C  Framing bias

D  Availability bias

A  A part of microeconomics focused on supply and demand

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  The branch of economics that incorporates psychology into economic models

A  It is less than 0

B  It is greater than 0

C  It is inelastic

D  None of the above

A  Complements

B  Substitutes

C  Unrelated

D  None of the above

A  Price would decrease and quantity would increase

B  Price and quantity would increase

C  Price would increase and quantity would decrease

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 mostly on the sellers

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

A  Not enough information

B  Increased tax burden on the buyers

C  Increased tax burden on the sellers

D  None of the above

A  Buyers will now pay more of the tax

B  No effect

C  Unclear

D  Sellers 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  Increase in its magnitude

C  Decrease in its magnitude

D  Unclear

A  The Price Elasticity of Supply

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

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

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

A  Stays the same

B  Increase

C  Unclear

D  Decrease

A  The quantity decreases

B  The price buyers pay decreases

C  Consumers of this good are made happier by the tax

D  The price sellers receive increases

A  Ad valorem subsidy

B  Rent control

C  Minimum wage

D  None of the above

A  $150

B  $100

C  $175

D  $75

A  A Backstrom-Daldumyan Tariff

B  Tax

C  Price floor

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 tax placed on a good or service

D  A limit on the quantity of a good or service

A  Price unclear, quantity decreases

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

C  Price increases, quantity unclear

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

A  There is an effective price floor applied in this market

B  Few people want primary care services

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

D  There is a shortage of primary care doctors

A  Decreases

B  Unchanged

C  Unclear

D  Increases

A  Both increase

B  Both decrease

C  The price increases while the quantity is unchanged

D  The price decreases while the quantity is unclear

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 the quantity demanded at a given price

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

A  FALSE

B  TRUE

A  A tax on gas should be removed

B  The national government should increase its spending to increase GDP

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

D  The unemployment rate for November 2019 is 3.5%

A  TRUE

B  FALSE

A  Households

B  International traders

C  The government

D  Firms

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

B  The government can never improve on market outcomes

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

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

A  TRUE

B  FALSE

A  Increases the benefit

B  Decreases the explicit cost

C  Decreases the benefit

D  Increases the opportunity cost

A  The study of money, GDP and the stock market

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

C  The science of being boring at a national level

D  None of the above