Wache Hs Economics Final

21 Questions | By Akelley | Updated: Mar 21, 2022 | Attempts: 78

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1.

Along a supply curve, if the price of oil falls, what will happen to the quantity of oil supplied?
- A.
  
  Decrease
- B.
  
  Increase
- C.
  
  No Change
2.

If the price of cars fall, which option is the most likely behavior of car manufacturers?
- A.
  
  Make more cars
- B.
  
  Make less cars
- C.
  
  Maintain same level of cars
3.

When the price of a good increases the quantity demanded ____.
- A.
  
  Increases
- B.
  
  Decreases
- C.
  
  Stays the same
4.

When will people search harder for substitutes for oil?
- A.
  
  When oil prices are low
- B.
  
  When oil prices are at equilibrium
- C.
  
  When oil prices are high
- D.
  
  People will not search for substitutes for oil
5.

If the price in a market is above the equilibrium price, this creates ___________.
- A.
  
  Shortage
- B.
  
  Surplus
- C.
  
  Neither
6.

When the price is above the equilibrium price, greed (in other words, self-interest) tends to _________.
- A.
  
  Drive up the price
- B.
  
  Have no effect
- C.
  
  Drive down the price
7.

Jon is on eBay, bidding for a first edition of the influential Frank Miller graphic novel Batman: The Dark Knight Returns. In this market, who is Jon competing with?
- A.
  
  The seller of the graphic novel
- B.
  
  The other bidders
- C.
  
  EBay’s stakeholders
8.

Now, Jon is in Japan, trying to get a job as a full-time translator; he wants to translate English TV shows into Japanese and vice versa. He notices that the wage for translators is very low. Who is the “competition” that is pushing the wage down?
- A.
  
  Businesses who hire translators
- B.
  
  Other translators
- C.
  
  Prospective clients
9.

Your roommate just bought an iPod for $200. She would have been willing to pay $500 for a machine that could store and replay that much music. How much consumer surplus does your roommate enjoy from the iPod?
- A.
  
  $200
- B.
  
  $300
- C.
  
  $500
- D.
  
  $0
10.

The economist Bryan Caplan recently found a pair of $10 arch supports that saved him from the pain of major foot surgery. As he stated on his blog, he would have been willing to pay $100,000 to fix his foot problem, but instead he only paid a few dollars. ------ a. How much consumer surplus did Bryan enjoy from this purchase?
- A.
  
  $10
- B.
  
  $10,00
- C.
  
  $15,000
- D.
  
  $99,990
11.

Michael is an economist. He loves being an economist so much that he would do it for a living even if he only earned $30,000 per year. Instead, he earns $80,000 per year. (Note: This is the average salary of new economists with a Ph.D. degree.) How much producer surplus does Michael enjoy?
- A.
  
  $30,000
- B.
  
  $50,000
- C.
  
  $80,000
12.

The industrial areas in northeast Washington, DC, were relatively dangerous in the 1980s. Over the last two decades, the area has become a safer place to work (although there are still seven times more violent crimes per person in these areas compared with another DC neighborhood, Georgetown). When an area becomes a safer place to work, what probably happens to the “supply of labor” in that area?
- A.
  
  The supply of labor increases
- B.
  
  The supply of labor decreases
- C.
  
  The supply of labor does not change
13.

Since it’s become much easier to build better laptop computers in recent years, laptop supply has increased. What does this do to the price of laptops?
- A.
  
  The price of laptops increases.
- B.
  
  The price of laptops decreases.
- C.
  
  An increase in laptop supply will not change its price.
14.

When demand increases, what happens to price and quantity in equilibrium?
- A.
  
  Price increases and quantity decreases
- B.
  
  Price decreases and quantity increases
- C.
  
  Price and quantity both increase
- D.
  
  Price and quantity both decrease
15.

When supply increases, what happens to price and quantity in equilibrium?
- A.
  
  Price increases and quantity decreases
- B.
  
  Price decreases and quantity increases
- C.
  
  Price and quantity both increase
- D.
  
  Price and quantity both decrease
16.

When demand decreases, what happens to price and quantity in equilibrium?
- A.
  
  Price increases and quantity decreases
- B.
  
  Price decreases and quantity increases
- C.
  
  Price and quantity both increase
- D.
  
  Price and quantity both decrease
17.

When supply decreases, what happens to price and quantity in equilibrium?
- A.
  
  Price increases and quantity decreases
- B.
  
  Price decreases and quantity increases
- C.
  
  Price and quantity both increase
- D.
  
  Price and quantity both decrease
18.

What is a business that has no competition called?
- A.
  
  Equilibrium
- B.
  
  Surplus
- C.
  
  Monopoly
- D.
  
  Shortage
19.

If a business that formerly had competition suddenly has no competition, what is the most likely behavior of the business?
- A.
  
  Increased sales prices
- B.
  
  Decreased sales prices
20.

If a business has a profit margin of 5%, then the government taxes that business at 6%, which of the following options could keep the business profitable?
- A.
  
  Decrease prices
- B.
  
  Increase prices
- C.
  
  Lower costs to produce goods
- D.
  
  Cut staffing costs (fire employees)
21.

Nike hired Tiger Woods to be their spokesperson with the idea that he could generate increases in sales for the company. If they paid Tiger $100m/year AND the cost to make their products was another $100m/year, how much money in sales would they need to generate a profit?
- A.
  
  $100m
- B.
  
  $150m
- C.
  
  $200m
- D.
  
  $250m