Navigation » List of Schools » Glendale Community College » Economics » Econ 101 – Microeconomics » Fall 2022 » Midterm
Below are the questions for the exam with the choices of answers:
Question #1
A They would gain revenue from a small price decrease and they would lose revenue from a small price increase
B They would gain revenue from a small price increase and they would lose revenue from a small price decrease
C They would lose revenue from a small price increase
D They would gain revenue from a small price decrease
Question #2
A products A and B are unrelated
B products A and B are substitutes, if the price falls for B the demand for A rises
C products A and B are complements, if the price falls for B the demand for A falls
D products A and B are substitutes, if the price falls for B the demand for A falls
E products A and B are complements, if the price falls for B the demand for A rises
Question #3
A 0.5
B 0
C None of the choices
D 1
E -0.5
Question #4
A Luxury
B An item that consumers can quickly and easily change their consumption of
C Necessity
D An item that represents a large portion of consumers’ income
E An item with many substitutes
Question #5
A Ed = 0.4, demand is inelastic
B Ed = 0.4, demand is elastic
C Ed = 0.9, demand is elastic
D Ed = 2.3, demand is elastic
E c. Ed = 0.9, demand is inelastic
Question #6
A increasing taxes
B decreasing taxes
C increasing interest rates
D cutting subsidies for the agriculture industry
E a public works project to rebuild a bridge
Question #7
A A subsidy to producers
B A tax on producers
C A subsidy to buyers
D None of the choices
E All of the choices
Question #8
A 60,000 – which is less than the societally optimal amount since education is a positive externality
B 60,000 – which is more than the societally optimal amount since education is a positive externality
C 30,000 – which is less than the societally optimal amount since education is a negative externality
D 30,000 – which is less than the societally optimal amount since education is a positive externality
E 30,000 – which is more than the societally optimal amount since education is a positive externality
Question #9
A quantity sold decreases, price may increase or decrease
B price increases, quantity sold may increase or decrease
C quantity sold increases, price may increase or decrease
D price decreases, quantity sold may increase or decrease
E price decreases, quantity sold increases
Question #10
A price increases, quantity sold increases
B price decreases, quantity sold may increase or decrease
C price increases, quantity sold decreases
D price decreases, quantity sold increases
E price decreases, quantity sold decreases
Question #11
A the price of bicycles increases
B the price of bicycles decreases
C the price of gas increases
D the price of gas decreases
E None of these choices
Question #12
A $800 and 16m
B $600 and 12m
C $600 and 22m
D $400 and 16m
E $800 and 5m
Question #13
A The government provides Toyota a subsidy for each car produced.
B The cost of gas increases.
C The price of steel used in the production of Priuses increases.
D The price of Toyota Priuses rises.
E Consumers realize the Prius is a slow and tacky vehicle.
Question #14
A households buy resources/labor from firms and firms sell resources/labor to households
B firms sell resources/labor to households.
C households buy resources/labor from firms.
D firms buy resources/labor from households and households sell resources/labor to firms.
Question #15
A Government services are limited to basic protections such as enforcing laws and protecting the public.
B Monetary incentives exist for entrepreneurs who bear risk.
C None of these choices
D Individuals, not the government, own the factors of production.
E Goods and services are sold in a competitive way.