When the market price is above the equilibrium price

there is a surplus and price will fall to Pe

Which of the following is true?

Marginal principle answers "how many?"

Options for today (no order): class, sleep, or work. You choose sleep. What is your op cost?

work or class, whichever is most-preferred

If the price of Good A falls, then

there is a leftward movement along supply of Good A

If demand decreases and supply decreases, then

Pe movement is unknown and Qe falls

Pick the true statement

The op cost is defined as the next best alternative.

For buyers, Good A and Good B are subs. If Good A rises in price, then

the demand for Good B shifts right

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Econ 102 Exam 1 Practice

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Questions 16

Answers

1
When the market price is above the equilibrium price
there is a shortage and price will rise to Pe
there is a surplus and price will rise to Pe
there is a surplus and price will fall to Pe
there is a shortage and price will fall to Pe
2
Calculate the slope of the line
-1.5
-3
1.5
3
3
Which point on the curve has a steeper slope?
Point B
not enough info to answer the question
the slope is the same at Point A and Point B
Point A
4
The US inflation rate is a_______ topic.
macroeconomics
microeconomics
5
If Pe rises and Qe rises, then
demand decreased
demand increased
supply decreased
supply increased
6
If the price rises then demand decreases.
False
True
7
If demand increases, then
Pe rises and Qe rises
Pe rises and Qe falls
Pe falls and Qe falls
Pe falls and Qe rises
8
Which of the following is true?
Marginal principle is about interdependencies
Marginal principle answers "or what?"
Marginal principle compares total costs and total benefits.
Marginal principle answers "how many?"
9
Options for today (no order): class, sleep, or work. You choose sleep. What is your op cost?
work
work or class, whichever is most-preferred
class
work and class
10
Joe is willing to pay $50 to go to a concert. The ticket is priced at $30. Joe's economic surplus?
$80
what else Joe would do besides going to the concert
$50
$20
11
If the price of Good A falls, then
the supply curve of Good A shifts left
the supply curve of Good A shifts right
there is a leftward movement along supply of Good A
there is a rightward movement along supply of Good A
12
If demand decreases and supply decreases, then
Pe movement is unknown and Qe falls
Pe movement is unknown and Qe rises
Pe falls and Qe movement is unknown
Pe rises and Qe movement is unknown
13
Pick the true statement
If you're doing what you want to do your op cost is zero.
The op cost is defined as the next best alternative.
both are true
neither are true
14
Ron takes money out of his paycheck now to save for his retirement. This is an example of
dependencies across individual choices
dependencies across people/businesses
dependencies across time
dependencies between markets
15
Microeconomics is the study of
US tax policy
the whole economy
individual decisions
how to make money in the stock market
16
For buyers, Good A and Good B are subs. If Good A rises in price, then
the demand for Good B shifts right
the demand for Good B shifts left
the demand for Good A shifts left
the demand for Good A shifts right

Econ 102 Exam 1 Practice Flashcards | StudBud