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ECON 200 Exam 1 Review (Dev and Liz) Flashcards | StudBud
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ECON 200 Exam 1 Review (Dev and Liz)
ECON 200 Exam 1 Review (Dev and Liz)
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Questions
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Answers
1
A cup of coffee costs $0.25. What is the marginal cost of the 20th cup of coffee?
$2
$5
$0.25
$6
2
Which country has a comparative advantage in producing sugar?
China
Both
Neither
India
3
Which country has an absolute advantage in producing molasses?
India
China
Both
Neither
4
Who benefits more from this subsidy?
Consumers
Producers
5
The demand for diet soda increases and the supply increases as well. What happens to the equilibrium price and quantity?
Price increases and quantity change is ambiguous
Price change is ambiguous and quantity decreases
Price change is ambiguous and quantity increases
Price decreases and quantity change is ambiguous
6
The change in price for pianos is 15 percent and the change in quantity is 20 percent. What is the good?
neither
inelastic
both
elastic
7
The demand for umbrellas decreases and the supply decreases as well. What happens to the eq price and quantity?
Price change is ambiguous and quantity decreases
Price decreases and quantity change is ambiguous
Price change is ambiguous and quantity increases
Price increases and quantity change is ambiguous
8
The demand for tea increases and the supply decreases. What happens to equilibrium price and quantity?
Eq price is ambigious and quantity increases
Eq price increases and quantity change is ambigious
Eq price is ambigious and quantity decreases
Eq price decreases and quantity change is ambigious
9
What would cause society to move from PPF1 to PPF2
A new technology that helps increase the production of jeans
A new technology that helps increase the production of backpacks
An increase in producers
A natural disaster
10
Who bears a greater burden of this tax?
Consumers
Producers
11
Which area represents the DWL?
A
B
12
If the government places a tax on the market, who will bear the burden of the tax?
Buyers
Sellers
13
After the tax, what do consumers pay and what producers recieve?
Consumers: $9; Producers: $3
Consumers: $9; Producers: $3
Consumers: $18; Producers: $9
Consumers: $18; Producers: $3
14
The demand of coffee decreases and the supply increases. What will happen to eq quantity and price?
Price change is ambigious and quantity decreases
Price decreases and quantity change is ambigious
Price increases and quantity change is ambigious
Price change is ambigious and quantity decreases
15
What is the change in total surplus after the tax is applied?
45
180
90
27
16
Diamonds have a price elasticity of -1.20. If the quantity demanded decreased by 12% what happened to the price?
decreased by 10 percent
decreased by 12 percent
increased by 10 percent
increased by 12 percent
17
If Kal wasn't in econ class, she would be eating a donut in her room. This represents
marginality
opportunity cost
sunk cost
18
Demand for apples increases. What happens to equilibrium quantity and price
Price decreases and quantity increases
Both price and quantity increase
Price increases and quantity decreases
both price and quantity decrease
19
What is the opportunity cost of moving from Point B to Point C
0.66
1.5
3.5
2
20
As income increases, the demand for steak increases and the demand for chicken decreases. What are steak and chicken?
both normal goods
steak: normal good, chicken inferior good
steak: inferior good, chicken: normal gppd
both inferior goods
21
The price of watches increases by 15% and the demand decreases by 5%? What will happen to total revenue?
Cannot be determined
Tr will remain the same
TR will increase
TR will decrease
22
Which of the following is FALSE?
You can have every absolute advantage but not every comparative advantage
You can have an absolute advantage without having a comparative in anything
You can have every comparative advantage but not every absolute advantage
You can have a comparative advantage without having an absolute advantage
23
At what points could society produce at?
D,E
A,B,C
A,B
A,C
24
What is the price consumers pay and what do producers recieve?
Consumers: $10; Producers: $14
Consumers: $7 ; Producers: $14
Consumers: $14; Producers: $7
Consumers: $7; Producers: 10
25
Which of the following is an example of a normative statement?
The government should tax the rich
Teachers should be paid less
Private schools should be less costly
Studies find that sleep deprivation increases risk of heart disease
26
This represents a
Subsidy on consumers
tax on consumers
tax on producers
subsidy on producers
27
What may have caused the graph to shift from S1 to S2
decrease in demand
increase to the price of input goods
increase to the price of substitute goods
change in consumer expectations
28
What would cause the demand curve to shift to the right? (CHOOSE ALL THAT APPLY)
A decrease in a substitute good's price
An increase in a substitute good's price
A decrease in a complement goods price
An increase in a complement goods price
29
Chips and salsa have a price elasticity of -1.20. What are they?
complements
elastic goods
substitutes
inelastic goods
30
Which of the following would cause a MOVEMENT along the demand curve
change in the good's price
change in related good's price
change in input
change in consumer expectations
31
This represents a
Tax on consumers
Tax on producers
Subsidy on producers
Subsidy on consumers
32
How much is this tax?
$15
$3
$12
$6
33
The supply for coffee decreases and the demand remains the same. What happens to eq price and quantity?
both eq price and quantity decrease
both eq price and quantity increase
eq price increases and quantity decreases
eq price decreases and quantity increases
