Navigation » List of Schools » Los Angeles Valley College » Economics » Econ 001 – Principles of Economics » Winter 2020 » Exam 1
Below are the questions for the exam with the choices of answers:
Question #1
A The price increases a lot but the quantity increases only a little
B The price increases a little but the quantity increases a lot
C The price increases a lot but the quantity falls by a lot
D The price decreases and the quantity increases
Question #2
A Unclear
B Increases
C Decreases
D Stays the same
Question #3
A Government obtains more revenue
B Price buyers pay decreases
C Sellers pay the entire tax
D None of the above
Question #4
A An increase in price causes a huge increase in supply
B An increase in price causes an increase in total revenue
C PES is elastic
D None of the above
Question #5
A The supply does not shift if there are more sellers
B The supply is not affected by changes in price
C The supply curve is downward sloping
D There will be no equilibrium price in this market
Question #6
A A decrease in costs will cause a greater change in the quantity than in the price
B The quantity demanded is not very responsive to a change in the price
C An increase in tastes and preferences will cause a greater change in the quantity than the price
D The demand curve is flat and downward sloping
Question #7
A More inelastic
B More elastic
C More cosmetic
D None of the above
Question #8
A Buyers’ income increases
B Buyers’ income increases and sellers expect the price to increase
C The implementation of an effective price floor on the market
D Tastes and preferences move away from the product
Question #9
A Unclear
B Increases
C Decreases
D Stays the same
Question #10
A Increases
B Decreases
C Unclear
D Stays the same
Question #11
A The quantity supplied does not change much when price increases
B PES for toddler walkers is inelastic
C An increase in tastes and preferences will cause a greater change in the quantity than the price
D A decrease in costs will cause a greater change in the price than in the quantity
Question #12
A Buyers will buy the product even if the price rises by a large amount
B The good has no complements
C The good likely has many substitutes
D Its demand curve is steep and downward sloping
Question #13
A Decrease in its magnitude (that is, its absolute value)
B Unchanged
C Unclear
D Increase in its magnitude (that is, its absolute value)
Question #14
A The unit change in quantity supplied from a $1 increase in the price
B The Price Elasticity of Supply
C The change in quantity supplied from a given change in the price
D The percentage change in quantity supplied from a 1% increase in the price
Question #15
A Unclear
B Decrease
C Increase
D Stays the same
Question #16
A The price sellers receive decreases
B Consumers of this good are made happier by the tax
C The price buyers pay decreases
D The quantity increases
Question #17
A Markets are usually the best way to allocate resources
B Decisions are often marginal
C People face tradeoffs
D None of the above
Question #18
A There will be a long waiting list to get a kidney
B The PED has increased in magnitude
C A price floor has been applied
D The government’s policy will cause the supply curve of kidneys to shift
Question #19
A 4,000
B 5,500
C 3,500
D 2,500
Question #20
We have the following table for humidifiers:
Price Quantity supplied Quantity demanded
$200 6,500 1,500
$175 6,000 2,000
$150 5,500 2,500
$125 5,000 3,000
$100 4,500 3,500
$75 4,000 4,000
$50 3,500 4,500
$25 3,000 5,000
$0 2,500 5,500
What is the equilibrium price?
A $125
B $175
C $75
D $150
Question #21
A Price rises and quantity rises
B Price falls and quantity is unclear
C Price rises and quantity is unclear
D None of the above
Question #22
A Price falls and quantity is unclear
B Price falls and quantity rises
C Price rises and quantity falls
D Price is unclear and quantity falls
Question #23
A Price rises and quantity is unclear
B Price is unclear and quantity is unclear
C Price falls and quantity falls
D None of the above
Question #24
A Price is unclear and quantity is unclear
B Price falls and quantity is unclear
C Price increases and quantity increases
D P is unclear and quantity falls
Question #25
A Price is unclear and quantity falls
B Price increases and quantity increases
C Price is unclear and quantity is unclear
D Price falls and quantity is unclear
Question #26
A Supply shift to the right
B Demand shift to the left
C Supply shift to the left
D Demand shift to the right
Question #27
A FALSE
B TRUE
Question #28
A The market has had a shortage since then
B Marijuana in Colorado does not really make people feel hungry (nor stoned)
C The market has moved towards its new equilibrium so the shortage disappeared
D The market has moved from a shortage to surplus
Question #29
A The curve telling us what a country is capable of producing if it uses all its resources
B The curve telling us the quantity supplied at a given price
C The curve telling us how many puffs of marijuana are optimal at a given price
D None of the above
Question #30
A The unemployment rate for November 2018 is 3.7%
B The tax burden is dependent on whom the tax is applied on
C The Trump tax cuts should be repealed
D A tax causes an increase in the price buyers pay for a good
Question #31
A It looks bigger
B It omits a sector of the economy known as the government
C It consists only of households without any firms or markets
D It looks more like a circle
Question #32
A FALSE
B TRUE
Question #33
A TRUE
B FALSE
Question #34
A An increase in a nation’s income means its life expectancy is going to fall
B When your teacher decided to teach this course, he must worry about alternative uses of his time
C To encourage more people to participate in the course discussions, I make each discussion worth fewer points
D To make a decision about whether to buy a textbook, I can just consider how helpful it will be
Question #35
A Trade is beneficial
B Income affecting the standard of living
C People respond to incentives
D Tradeoffs
Question #36
A TRUE
B FALSE
Question #37
A The explicit cost of going to community college increases
B The benefit of going to community college increases
C The opportunity cost of going to community college increases
D The Nazarov cost of going to community college decreases
Question #38
A Increases the opportunity cost
B Decreases the benefit
C Decreases the explicit cost
D Increases the benefit
Question #39
A Studying for another course’s exam
B Watching a TV show with your friends
C Caring for a loved one
D Raising your grade in the course from getting a good grade on the exam