ECON 1002 Midterm Test.
Question 1
A demand curve:
Question 2
The income effect that results from a price change is given by:
Question 3
The table below shows t
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ECON 1002 Midterm Test.
Question 1
A demand curve:
Question 2
The income effect that results from a price change is given by:
Question 3
The table below shows the quantities demanded and quantities supplied for a good at various prices. The equilibrium price and quantity for the good above respectively equal:
Price Qdemanded Qsupplied
$0.25 500 200
$0.50 400 400
$0.75 200 600
$1.00 100 800
Question 4
When price is below the market equilibrium price:
Question 5
The economic surplus to an individual from consuming a good is given by:
Question 6
A change in "demand" of a good is caused by ______________; a change in "quantity demanded" of a good is caused by ______________:
Question 7
Based on the diagram below, which of the following best explains the change depicted?
Question 8
A production possibilities curve with a bowed outward shape indicates:
Question 9
The increased popularity of screw off caps on wine bottles has led to a decrease in the demand for cork. As a result, we can expect that:
Question 10
If supply shifts in (leftward) and simultaneously demand shifts out (rightward), what can we expect to happen to the equilibrium price and quantity?
Question 11
Based on the table below, the buyer's and seller's surplus associated with the good shown above respectively equal:
Price Buyer's Reservation Price Seller's Reservation Price
$2.00 $3.00 $1.50
Question 12
If all costs of producing a good are borne directly by sellers, and if all benefits from the good accrue directly to buyers, then:
Question 13
The law of demand says that:
Question 14
The real price of a good is given by:
Question 15
Kate can grade 10 exams in an hour or grade 5 papers in an hour. Mike can grade 30 exams or grade 6 papers in an hour. Which of the following statements is true?
Question 16
Suppose there are 10 individuals in the market, each with the demand curve shown below. Which of the following statements is true about the market demand?
Question 17
In the market depicted below, the equilibrium price and quantity are indicated by P* and Q* respectively. The area of consumer surplus is best indicated by letter(s):
Question 18
If demand for a product is elastic with respect to price, this means the:
Question 19
Suppose when the price of tennis balls increases by 5%, the quantity demanded decreases by 4%. The price elasticity of demand for tennis balls equals:
Question 20
All of the following characteristics influence the price elasticity of demand for a good except:
Question 21
Which of the following would shift the production possibilities curve outward?
Question 22
For a seller facing the demand curve shown below, as price decreases from $10 to $0:
Question 23
Which of the following statements is true regarding decision making?
Question 24
A firm knows that the price elasticity of demand for the good they are selling equals 1.5. If they increase the price they charge for their good:
Question 25
A perfectly inelastic supply curve is:
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