Ec 201 Exam 2 P

34 Questions | Total Attempts: 559

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Practice Exam Quizzes & Trivia

Questions and Answers
  • 1. 
    The most important concepts in economics, according to the textbook, are supply, demand, and the
    • A. 

      idea of equilibrium.

    • B. 

      Opportunity to barter.

    • C. 

      Quantity of sales.

    • D. 

      The level of prices.

  • 2. 
    Quantity demanded:
    • A. 

      Shows how much buyers are willing and able to buy at different prices.

    • B. 

      Is the amount that buyers are willing and able to buy at a particular price.

    • C. 

      Shows how much sellers are willing and able to sell at different prices.

    • D. 

      Is the amount that sellers are willing and able to sell at a particular price.

  • 3. 
    The demand curve for oil shows:     
    • A. 

      The quantity demanded of oil at different income levels.

    • B. 

      The quantity demanded of oil at different oil prices.

    • C. 

      The demand for oil at different prices of other goods.

    • D. 

      The demand for oil when there is a surplus or shortage.

  • 4. 
    (Figure: Good X) From the figure, which statement is TRUE?     
    • A. 

      At a price of $12 per unit, consumers are willing and able to purchase between 11 and 26 units of Good X.

    • B. 

      36 units of Good X can be purchased by spending a total of $4.

    • C. 

      At a price of $6 per unit, consumers are willing and able to purchase 26 units of Good X.

    • D. 

      At a price of $4 per unit, consumers are willing and able to purchase 11 units of Good X.

  • 5. 
    (Figure: Good X) From the figure, the maximum price that consumers are willing to pay for _____ units of Good X is _____ per unit.
    • A. 

      36; $4

    • B. 

      11; $4

    • C. 

      36; $12

    • D. 

      26; $4

  • 6. 
    Recall the discussion about the demand for oil in your textbook. Which of the following correctly explains why the demand curve for oil is negatively sloped? As the price of oil rises: 
    • A. 

      consumers use oil for more and varied purposes.

    • B. 

      Consumers increasingly use oil only for those purposes without good substitutes.

    • C. 

      Consumers have an incentive to use oil more freely.

    • D. 

      More producers are more willing and able to produce oil.

  • 7. 
    The law of demand suggests a _____ relationship between price and _____. 
    • A. 

      Positive; quantity demanded

    • B. 

      Positive; quantity supplied

    • C. 

      Negative; quantity demanded

    • D. 

      Negative;, quantity supplied

  • 8. 
    (Figure: Potatoes) Refer to the figure. According to the demand curve, if the price of potatoes is $8 a pound, how many pounds are demanded?
    • A. 

      5

    • B. 

      50

    • C. 

      60,000

    • D. 

      80,000

  • 9. 
    (Figure: Potatoes) Refer to the figure. If the price of potatoes is $8 a pound, what is the consumer surplus received?     
    • A. 

      $30,000

    • B. 

      $60,000

    • C. 

      $240,000

    • D. 

      $360,000

  • 10. 
    (Table: Excel Company Survey) The table shows the results of Excel Company's market survey. If the market price of Excel computers is $1,200 each, how much total consumer surplus (in $) are the four consumers earning? 
    • A. 

      $380

    • B. 

      $415

    • C. 

      $345

    • D. 

      $5,145

  • 11. 
    (Table: Sweetbrand Cheesecakes) The table shows the maximum consumer willingness to pay for Sweetbrand cheesecakes. Which of the four consumers receives the most consumer surplus, if the market price of the cheesecakes is $12.50 each? 
    • A. 

      Frodo

    • B. 

      Sam

    • C. 

      Mary

    • D. 

      Pippin

  • 12. 
    (Table: Sweetbrand Cheesecakes) The table shows the maximum consumer willingness to pay for Sweetbrand cheesecakes. Which of the four consumers receives the smallest consumer surplus, if the market price of the cheesecakes is $12.50 each?     
    • A. 

      Frodo

    • B. 

      Sam

    • C. 

      Mary

    • D. 

      Pippin

  • 13. 
    (Figure: Quantity of Good X) Refer to the figure. At a price of $200, consumer surplus is:     
    • A. 

      $20,000.

    • B. 

      $40,000.

    • C. 

      $10,000.

    • D. 

      $200.

  • 14. 
    (Figure: Quantity of Good X) Refer to the figure. As the price falls from $200 to $100, consumer surplus changes by:
    • A. 

      $5,000.

    • B. 

      $10,000.

    • C. 

      $12,500.

    • D. 

      –$25,000.

  • 15. 
    A good is considered normal if demand for it ______ when income ______.     
    • A. 

      Increases; increases

    • B. 

      Decreases; increases

    • C. 

      Stays the same; decreases

    • D. 

      Increases; decreases

  • 16. 
    An inferior good is one that:
    • A. 

      Is of low quality or not very durable.

    • B. 

      Gets poor reviews from objective, independent evaluators.

    • C. 

      No consumers are willing to buy.

    • D. 

      Experiences decreased demand when income increases.

  • 17. 
    In the diagram, which of the following factors would cause the demand curve to shift from D1 to D2? 
    • A. 

      An increase in the price of a substitute good

    • B. 

      A decrease in the price of a complement good

    • C. 

      An increase in the population

    • D. 

      An increase in income if this is an inferior good

  • 18. 
    As the population of elderly in the United States increases, which service will likely see the biggest increase in demand?
    • A. 

      Skateboard repair

    • B. 

      Home medical care

    • C. 

      Career training

    • D. 

      Child day care

  • 19. 
    If the price of computers ______, the demand for printers will ______. 
    • A. 

      Increases; increase

    • B. 

      Decreases; decrease

    • C. 

      Decreases; not change

    • D. 

      Increases; decrease

  • 20. 
    A local university decides to double its enrollment over the next five years in order to increase tuition revenue. Which of the following would most likely occur in the market for rental housing in the surrounding community? 
    • A. 

      A decrease in the price of rental housing

    • B. 

      An increase in the demand for rental housing

    • C. 

      A decrease in the supply of rental housing

    • D. 

      A population change leads to a change in quantity demanded, not demand.

  • 21. 
    Which of the following would cause the demand for hot dog buns to increase? 
    • A. 

      A fall in the price of hot dog buns

    • B. 

      A fall in the price of hot dogs

    • C. 

      A rise in the price of hot dogs

    • D. 

      A rise in the price of hot dog buns

  • 22. 
    Refer to the figure. A vertical reading of the figure indicates that:
    • A. 

      At a price higher than $40, the quantity supplied drops to zero.

    • B. 

      At prices of $40 or less, suppliers are willing to sell at least 500 units

    • C. 

      At a price of $40 per unit, suppliers are willing and able to sell 500 units.

    • D. 

      At a price lower than $40, the quantity supplied drops to zero.

  • 23. 
    (Figure: Bananas) Refer to the figure. If the price of bananas is $10 a pound, which number is closest to the number of pounds that suppliers will supply? 
    • A. 

      5

    • B. 

      50

    • C. 

      60,000

    • D. 

      80,000

  • 24. 
    (Figure: Bananas) Refer to the figure. If the price of bananas is $2 a pound, how many pounds of bananas will suppliers supply?
    • A. 

      0

    • B. 

      1

    • C. 

      10

    • D. 

      10,000

  • 25. 
    (Figure: Producer Surplus) Refer to the figure. What is the producer surplus at a price of $2 per unit?
    • A. 

      $5

    • B. 

      $6

    • C. 

      $10

    • D. 

      $20

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