Navigation » List of Schools » Los Angeles Valley College » Economics » Econ 001 – Principles of Economics » Winter 2020 » Final Exam
Below are the questions for the exam with the choices of answers:
Question #1
A Price increases and quantity decreases
B Price is unclear and quantity decreases
C Price and quantity both decrease
D Price is unchanged and quantity is unchanged
Question #2
A Price is unclear and quantity decreases
B Price and quantity both decrease
C Price increases and quantity decreases
D Price is unchanged and quantity is unchanged
Question #3
A Unchanged
B Increases
C Unclear
D Decreases
Question #4
A P is unchanged; Q is unchanged
B P is unchanged; Q increases
C P increases; Q decreases
D P and Q both decrease
Question #5
A Decreases
B Increases
C Unchanged
D Unclear
Question #6
A P=MC
B MR=MC
C P=ATC
D None of the above
Question #7
A They are legal in only a few states in the US because of how damaging they are to a state’s poorer population
B It is yet another topic designed by your instructor to bore you
C They are far worse than regular savings accounts in every possible way which explains why no one uses PLSAs
D They tended to be blocked by states which had a monopoly on lotteries
Question #8
A Q=q
B It tends to have some barrier to entry
C Its profits are affected by changes in tastes and preferences
D All of the above characterize a monopoly
Question #9
A FALSE
B TRUE
Question #10
A There are no fixed costs
B Firms will close in the short run
C Firms will enter in the long run
D The price above represents the long run equilibrium
Question #11
A TRUE
B FALSE
Question #12
A increase the price
B change nothing
C increase its output
D decrease its output
Question #13
A The market will transform into a monopoly
B Fifteen firms will leave the market
C There will be more than 100 firms in this market
D The market price will go up
Question #14
A 4
B 5
C 3
D 1
Question #15
A $700
B Not enough information
C $500
D $200
Question #16
A $100
B $50
C $200
D $500
Question #17
A $75
B $31.25
C $62.50
D $40
Question #18
A FALSE
B TRUE
Question #19
A Its supporters believe behavioral economics is a substitute for traditional economics
B It incorporates physics into economic thought
C It tries to use nudges to influence people’s choices for their benefit
D It assumes people are rational
Question #20
A Confirmation bias
B Planning fallacy
C Framing bias
D Availability bias
Question #21
A Availability bias
B Planning fallacy
C Confirmation bias
D Framing bias
Question #22
A Framing bias
B Planning fallacy
C Availability bias
D Overconfidence bias
Question #23
A A part of microeconomics focused on supply and demand
B The branch of economics that incorporates psychology into economic models
C The branch of economics that includes anthropology in economic models
D The study of how any form of human behavior is due to being rational
Question #24
A It is inelastic
B It is greater than 0
C It is less than 0
D None of the above
Question #25
A Complements
B Unrelated
C Substitutes
D None of the above
Question #26
A Price and quantity would decrease
B Price and quantity would increase
C Price would increase and quantity would decrease
D Price would decrease and quantity would increase
Question #27
A The tax burden will fall mostly on the sellers
B The tax burden will fall completely on the sellers
C The tax burden will fall mostly on the buyers
D The tax burden will fall equally on the sellers and buyers
Question #28
A Increased tax burden on the buyers
B Increased tax burden on the sellers
C Not enough information
D None of the above
Question #29
A No effect
B Unclear
C Buyers will now pay more of the tax
D Sellers will now pay more of the tax
Question #30
A The good has no substitutes
B An increase in the price will cause the revenue to decline
C Buyers will buy the product even if the price rises by a small amount
D The good likely has many complements
Question #31
A Increase in its magnitude
B Unchanged
C Unclear
D Decrease in its magnitude
Question #32
A The Price Elasticity of Supply
B The unit change in quantity supplied from a $1 increase in the price
C The change in quantity supplied from a given change in the price
D The percentage change in quantity supplied from a 1% increase in the price
Question #33
A Increase
B Stays the same
C Unclear
D Decrease
Question #34
A The price buyers pay decreases
B The quantity decreases
C The price sellers receive increases
D Consumers of this good are made happier by the tax
Question #35
A Rent control
B Ad valorem subsidy
C Minimum wage
D None of the above
Question #36
We have the following table for humidifiers:
Price Quantity supplied Quantity demanded
$200 3,500 0
$175 3,000 0
$150 2,500 500
$125 2,000 1,000
$100 1,500 1,500
$75 1,000 2,000
$50 500 2,500
$25 0 3,000
$0 0 3,500
What is the equilibrium price?
A $100
B $75
C $175
D $150
Question #37
A A Backstrom-Daldumyan Tariff
B Tax
C Price floor
D None of the above
Question #38
A A legalized minimum price for a good or service
B A tax placed on a good or service
C A legalized maximum price for a good or service
D A limit on the quantity of a good or service
Question #39
A Supply curve shifts to the right; Demand curve shifts to the right
B Price increases, quantity unclear
C Price unclear, quantity decreases
D Supply curve shifts to the right; Demand curve shifts to the left
Question #40
A There is an effective price floor applied in this market
B There is a shortage of primary care doctors
C The number of people who want to become primary care doctors far exceeds the demand
D Few people want primary care services
Question #41
A Decreases
B Unclear
C Unchanged
D Increases
Question #42
A Both decrease
B Both increase
C The price increases while the quantity is unchanged
D The price decreases while the quantity is unclear
Question #43
A The curve that tells us what a country is capable of producing if it uses all its resources
B The curve that tells us the quantity demanded at a given price
C The curve that tells us how much a certain economics instructor’s enrollment will fall when the students realize how boring he is
D None of the above
Question #44
A FALSE
B TRUE
Question #45
A A tax on gas should be removed
B The unemployment rate for November 2019 is 3.5%
C A tax causes a decline in the quantity of a good or service
D The national government should increase its spending to increase GDP
Question #46
A TRUE
B FALSE
Question #47
A The government
B Households
C Firms
D International traders
Question #48
A The government can never improve on market outcomes
B An increase in a country’s income means its education level will fall
C The best way to allocate resources is for the supply to follow the demand
D When you decided whether to take this class, you did not need to consider alternative uses of your time
Question #49
A FALSE
B TRUE
Question #50
A Decreases the benefit
B Decreases the explicit cost
C Increases the opportunity cost
D Increases the benefit
Question #51
A The study of money, GDP and the stock market
B The study of decision-making of how to distribute scarce resources by individual people and firms
C The science of being boring at a national level
D None of the above