Econ Quiz- Semester Final

Question 1

Rent control is

Accepted Answer

A common example of a price ceiling

Question 2

A 20% increase in the Qd of pizza results from a 10% decline in its price. The PED is

Accepted Answer

2.0

Question 3

A price floor is

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A legal minimum price of a good

Question 4

If a market has low competition, usually start up costs are...

Accepted Answer

High

Question 5

When a surplus occurs

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Prices fall to increase Qd

Question 6

When a country has economic stability which of the following will not occur?

Accepted Answer

Massive swings in unemployment

Question 7

When a price floor is imposed it has an impact on the market if it is set

Accepted Answer

Above the equilibrium price

Question 8

Goods that "Go together" like bikes and bike helmets are

Accepted Answer

complementary

Question 9

Which of the following is an example of economic growth...

Accepted Answer

When a car manufacturer plant opens, 1500 jobs are created.

Question 10

All of the following are problems associated with a binding price ceiling except

Accepted Answer

Chronic excess supply

Question 11

Opportunity Cost is...

Accepted Answer

Most desirable alternative given up when making a decision.

Question 12

Which of the following describes the Nash Equilibrium?

Accepted Answer

Both firms choose their dominant strategy

Question 13

Jamie gets a job and he no longer has to buy Ramen Noodles. Ramen Noodles are considered a

Accepted Answer

Inferior Good

Question 14

The $ of cabbage falls from $10.50 to $9.50 and Qd increases from 18,800 to 21,200. The PED is

Accepted Answer

1.2

Question 15

When the price of peanut butter increases, we can expect what of the demand for jelly?

Accepted Answer

It will fall.

Question 16

Which of the following is NOT a factor that would shift supply?

Accepted Answer

Income (Buyers)

Question 17

A market with many buyers and sellers, identical products and free entry and exit is a(n)

Accepted Answer

Perfect Competition

Question 18

A single seller in a market is a(n)

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Monopoly

Question 19

What type of economic systems does the U.S. have?

Accepted Answer

Mixed Market Economy

Question 20

Do companies in a perfectly competitive market have much control over prices?

Accepted Answer

No

Question 21

When demand is inelastic, the majority of the tax falls on the...

Accepted Answer

Consumers

Question 22

A Production Possibilities Frontier shows...

Accepted Answer

The maximum possible output by an economy.

Question 23

In theory a command economy promotes

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Equity

Question 24

U.S. Government provides Economic Security by providing all of the following except...

Accepted Answer

Life Insurance

Question 25

The slope of the PPF(PPC) shows

Accepted Answer

The opportunity cost of one good in terms of another.

Question 26

Which of the following is most likely to have an inelastic demand?

Accepted Answer

A good that is a necessity.

Question 27

Which of the following would be an oligopoly?

Accepted Answer

2-5 firms producing 70-80% of the output.

Question 28

A price ceiling that is set below the equilibrium would cause a...

Accepted Answer

shortage

Question 29

If at the current price there is a shortage of the good...

Accepted Answer

The price is below the equilibrium price

Question 30

A market structure with many companies selling a similar product is...

Accepted Answer

Monopolistic Competition

Question 31

The PED coefficient is always negative because...

Accepted Answer

There is an inverse relationship between P and Qd.

Question 32

A shift in overall demand is a result of a change in

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preferences

Question 33

All of the following are major goals of a Market Economy except...

Accepted Answer

Stability

Question 34

The law of demand states that as the price of good/service decreases...

Accepted Answer

Quantity demanded increases.

Question 35

Which of the following points on the PPF is unattainable?

Accepted Answer

X

Question 36

Which of the following points on the PPF represents maximizing resources?

Accepted Answer

C, B, D

Question 37

A steel mill that produces large amounts of pollution will from a social point of view...

Accepted Answer

Produce too much steel

Question 38

The law of supply states that

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As price increases supply increases

Question 39

Movement along the demand curve may be caused by a change in...

Accepted Answer

price

Question 40

In the case of a negative externality, the social marginal cost will

Accepted Answer

Exceed the private marginal cost

Question 41

A binding price ceiling is

Accepted Answer

Below the equilibrium

Question 42

The Market Clearing Price refers to the price in which...

Accepted Answer

There is neither a shortage or surplus.

Question 43

Consumers and Producers decide what will be produced in which of the following economies?

Accepted Answer

Market

Question 44

A demand schedule shows peoples willingness to buy the quantities of a good at different prices

Accepted Answer

True

Econ Quiz- Semester Final

Questions 44

Econ Quiz- Semester Final

Questions 44