An effective price floor means that_____.

government is imposing a legal price that is above the equilibrium price

In economics, making decisions “at the margin” means that people _____.

compare the marginal costs and marginal benefits of each decision

Which of the followings is a normative statement?

The BTS station should have toilets

A budget constraint shows the maximum combinations of products_____.

that can be purchased, given money income and the prices

An increase in money income of a consumer ____.

shifts his budget constraint to the right

If the price of mango rises, when is the price elasticity of demand likely to be the lowest?

Immediately after the price increase

We would expect the cross elasticity of demand between Ipad and Ipad pencil to be_________.

negative, indicating complementary goods

Opportunity costs exist because______.

the decision to engage in one activity means forgoing some other activities

An improvement in production technology_________.

shifts the supply curve to the right but does not shift the demand curve

In which of the following cases will total revenue increase______.

Price rises and demand is inelastic

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ECO2201_Midterm Quiz

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Questions 15

Answers

1
In economics, the pleasure, happiness, or satisfaction received from a product is called__________.
utility
status fulfillment
rational outcome
marginal cost
2
An effective price floor means that_____.
government is imposing a legal price that is below the equilibrium price
government is imposing a legal price that is above the equilibrium price
3
In economics, making decisions “at the margin” means that people _____.
make only those decisions that do not impose a marginal cost
compare the marginal costs and marginal benefits of each decision
always calculate the dollar costs for each decision
evaluate how easily a decision can be reversed if problems arise
4
An increase in the supply of gold will rise the price and reduce in the quantity of gold traded in the market
True
False
5
Which of the followings is a normative statement?
The supply curve is upward sloping
The demand curve is downward sloping
The GDP of Thailand increased by 3.6% in 2017
The BTS station should have toilets
6
A budget constraint shows the maximum combinations of products_____.
that can be purchased, given money income and the prices
that can be produced from a given amount of inputs at a point in time
7
The demand for mangoes has greatly increased. This increase in demand might best be explained by __________.
an increase in the price of coffee
a change in buyers’ tastes
an increase in the cost of planting mango trees
consumers expecting mango prices to fall
8
An increase in money income of a consumer ____.
decreases the slope of his budget constraint
shifts his budget constraint to the left
increases the slope of his budget constraint
shifts his budget constraint to the right
9
If the price of mango rises, when is the price elasticity of demand likely to be the lowest?
Immediately after the price increase
Three months after the price increase
One year after the price increase
One month after the price increase
10
We would expect the cross elasticity of demand between Ipad and Ipad pencil to be_________.
negative, indicating substitute goods
positive, indicating substitute goods
positive, indicating complementary goods
negative, indicating complementary goods
11
Which of the following will not cause the supply of beef to change?
A change in price of leather
A change in the price of input
A change in the price of beef
A change in price of milk
12
In drawing a particular budget constraint, money income and the prices of the two products are fixed
True
False
13
Opportunity costs exist because______.
the decision to engage in one activity means forgoing some other activities
most decisions do not involve sacrifices or trade-offs
wants are scarce relative to resources
the resources are unlimited
14
An improvement in production technology_________.
shifts the demand curve to the right but does not shift the supply curve
shifts the demand curve and the supply curve to the right
shifts the supply curve to the right but does not shift the demand curve
15
In which of the following cases will total revenue increase______.
Price rises and demand is elastic
Price rises and supply is elastic
Price rises and demand is inelastic
Price falls and demand is inelastic

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