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 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
Question #2
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
Question #3
A Increases
B Decreases
C Unchanged
D Unclear
Question #4
A P increases; Q decreases
B P is unchanged; Q is unchanged
C P and Q both decrease
D P is unchanged; Q increases
Question #5
A Unchanged
B Decreases
C Unclear
D Increases
Question #6
A MR=MC
B P=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 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
Question #8
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
Question #9
A TRUE
B FALSE
Question #10
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
Question #11
A FALSE
B TRUE
Question #12
A decrease its output
B change nothing
C increase its output
D increase the price
Question #13
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
Question #14
A 5
B 3
C 1
D 4
Question #15
A $500
B Not enough information
C $200
D $700
Question #16
A $50
B $500
C $200
D $100
Question #17
A $31.25
B $62.50
C $75
D $40
Question #18
A FALSE
B TRUE
Question #19
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
Question #20
A Availability bias
B Confirmation bias
C Framing bias
D Planning fallacy
Question #21
A Confirmation bias
B Framing bias
C Availability bias
D Planning fallacy
Question #22
A Overconfidence bias
B Planning fallacy
C Framing bias
D Availability bias
Question #23
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
Question #24
A It is less than 0
B It is greater than 0
C It is inelastic
D None of the above
Question #25
A Complements
B Substitutes
C Unrelated
D None of the above
Question #26
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
Question #27
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
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 No effect
C Unclear
D Sellers will now pay more of the tax
Question #30
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
Question #31
A Unchanged
B Increase in its magnitude
C Decrease in its magnitude
D Unclear
Question #32
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
Question #33
A Stays the same
B Increase
C Unclear
D Decrease
Question #34
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
Question #35
A Ad valorem subsidy
B Rent control
C Minimum wage
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 $150
B $100
C $175
D $75
Question #37
A A Backstrom-Daldumyan Tariff
B Tax
C Price floor
D None of the above
Question #38
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
Question #39
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
Question #40
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
Question #41
A Decreases
B Unchanged
C Unclear
D Increases
Question #42
A Both increase
B Both decrease
C The price increases while the quantity is unchanged
D The price decreases while the quantity is unclear
Question #43
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
Question #44
A FALSE
B TRUE
Question #45
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%
Question #46
A TRUE
B FALSE
Question #47
A Households
B International traders
C The government
D Firms
Question #48
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
Question #49
A TRUE
B FALSE
Question #50
A Increases the benefit
B Decreases the explicit cost
C Decreases the benefit
D Increases the opportunity cost
Question #51
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