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ECON 101 Quizzes, Midterm and Final Exam
Econ 101 quiz 1 Question 1 of 10 10.0 Points The branch of economics that examines the impact of choices on aggregates in the economy is: A. positive economics. B. normative economics. C. macroeconomics. D. microeconomics. Answer Key: C Question 2 of 10 10.0 Points When we are forced to make choices we are facing the concept of: A. ceteris paribus. B. free goods. C. scarcity. D. the margin. Answer Key: C Question 3 of 10 10.0 Points An economic system is the set of rules that define and. A. resources; prices B. who gets to vote; when elections will be held
C. market prices; factors of production D. how an economy's resources are to be owned; how decisions about the resources are to be made Answer Key: D Question 4 of 10 10.0 Points In a market capitalist economy: A. factors of production are owned privately and decisions about their use are basically made by individuals. B. factors of production are owned by the government but decisions about their use are made privately. C. private ownership exists but decisions about resource allocation are usually made centrally by the government. D. there is no role for the government. Answer Key: A Question 5 of 10 10.0 Points The branch of economics that examines the choices of consumers and firms is: A. positive economics. B. normative economics. C. macroeconomics. D. microeconomics.
C. to study the choices people make. D. to use unlimited resources to produce goods and services to satisfy limited wants. Answer Key: C Question 9 of 10 10.0 Points Whenever a choice is made: A. the value of all the other choices that could have been made is called opportunity cost. B. normative economics is encountered. C. the problem of "all other things unchanged" results. D. the opportunity cost of that choice is value of the next best alternative Answer Key: D Question 10 of 10 10.0 Points Economics is different from other social sciences because it gives special emphasis to the study of ; it is similar to other social sciences because they are all concerned with the study of. A. unlimited resources; economic systems B. human interactions; limited resources C. opportunity costs; choices D. social behavior; scarcity Answer Key: C
Econ 101 week 2 quiz Question 1 of 10 10.0 Points A shift of a demand curve to the right, all other things unchanged, will: A. increase equilibrium price and quantity. B. decrease equilibrium price and quantity. C. decrease quantity and increase price. D. increase quantity and decrease price. Answer Key: A Question 2 of 10 10.0 Points If the current price is above the equilibrium price, we would expect: A. quantity demanded to exceed quantity supplied. B. upward pressure on price. C. quantity supplied to exceed quantity demanded. D. no change in the market price. Answer Key: C Question 3 of 10 10.0 Points Demand is defined as: A. an amount that is purchased at a specific price, given supply. B. a schedule that establishes the price of a good.
Answer Key: A Question 6 of 10 10.0 Points The relationship between the quantity of a good or service sellers are willing and able to offer for sale and the independent variables that determine quantity is: A. supply. B. demand. C. equilibrium. D. disequilibrium. Answer Key: A Question 7 of 10 10.0 Points A price below the equilibrium price will: A. result in pressure for price to rise. B. result in a surplus. C. never be the case. D. result in pressure for price to fall. Answer Key: A Question 8 of 10 10.0 Points It is true that the equilibrium quantity will always go up if supply: A. and demand both increase.
B. increases and demand decreases. C. and demand both decrease. D. decreases and demand remains unchanged. Answer Key: A Question 9 of 10 10.0 Points The intersection of the supply and demand curves indicates: A. the equilibrium solution in the market. B. a surplus that will cause the price to fall. C. a shortage that will cause the price to rise. D. the quantity demanded exceeds the quantity supplied. Answer Key: A Question 10 of 10 10.0 Points A decrease in supply means: A. a shift to the left of the entire supply curve. B. moving downward (to the left) along the supply curve with lower prices. C. less will be demanded at every price. D. more will be supplied at every price.
B. price goes up and demand is price inelastic C. price declines and demand is price elastic D. price increases and demand is price elastic Answer Key: D Question 4 of 10 10.0 Points If total revenue goes up when price falls, the price elasticity of demand is said to be: A. price inelastic. B. unit price elastic. C. price elastic. D. positive. Answer Key: C Question 5 of 10 10.0 Points Price elasticity of demand measures the responsiveness of the change in: A. quantity demanded to a change in price. B. price to a change in quantity demanded. C. slope of the demand curve to a change in price. D. slope of the demand curve to a change in quantity demanded.
Answer Key: A Question 6 of 10 10.0 Points The price elasticity of demand is: A. always positive. B. always greater than 1. C. usually equal to 1. D. always negative. Answer Key: D Question 7 of 10 10.0 Points A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per day when the price was $3 per tie. Hence, the absolute value of the price elasticity of demand is: A. greater than zero but less than 1. B. equal to 1. C. greater than 1 but less than 3. D. greater than 3. Answer Key: B Question 8 of 10 10.0 Points If the total revenue received by a firm does not change when it raises its price, this indicates that the demand for the firm's product is: A. unstable.
Answer Key: A ECON 101 week 5 quiz Question 1 of 10 10.0 Points Average variable cost is: A. the firm's variable cost per unit multiplied by the quantity. B. total variable cost divided by quantity. C. the difference between average total cost and total variable cost. D. the difference between total cost and total variable cost. Answer Key: B Question 2 of 10 10.0 Points Which of the following is (are) correct? A. Firms are organizations that produce goods and services. B. Firms seek to maximize profits. C. Firms seek to utilize factors of production in the most efficient way in order to maximize profits. D. All of the above are correct. Answer Key: D Question 3 of 10 10.0 Points For a restaurant: A. labor and food would be variable factors of production. B. a building would be a fixed factor of production in the short run. C. fire insurance on a building would be a fixed factor of production. D. A and B are correct. Answer Key: D Question 4 of 10 10.0 Points Diminishing marginal returns means that:
A. each additional unit of an input used will decrease output. B. each additional unit of an input used will increase output, but by smaller and smaller amounts. C. each additional unit of an input used will increase output by larger and larger amounts. D. the firm is maximizing profit. Answer Key: B Question 5 of 10 10.0 Points When marginal cost is below average variable cost, average variable cost must be: A. at its minimum. B. at its maximum. C. falling. D. rising. Answer Key: C Question 6 of 10 10.0 Points If a firm produces 10 units of output and incurs $30 in average variable cost and $5 in average fixed cost, average total cost is: A. $30. B. $35. C. $50. D. $300. Answer Key: B Question 7 of 10 10.0 Points In the long run: A. all inputs are fixed. B. inputs are neither variable nor fixed. C. at least one input is variable and one input is fixed.
ECON101 Micro WEEK 6 QUIZ Question 1 of 10 10.0 Points Perfect competition is characterized by: A. rivalry in advertising. B. fierce quality competition. C. the inability of any one firm to influence price. D. widely recognized brands. Answer Key: C Question 2 of 10 10.0 Points An industry that contains a firm that is the only producer of a good or service for which there are no close substitutes and for which entry by potential rivals is prohibitively difficult is: A. a duopoly. B. a monopoly. C. an oligopoly. D. perfect competition. Answer Key: B Question 3 of 10 10.0 Points Which of the following is true in a perfectly competitive market? A. One unit of a good or service cannot be differentiated from any other on any basis. B. Brand preferences exist but are very slight. C. Barriers to entry are relatively strong. D. Information is costly. Answer Key: A Question 4 of 10 10.0 Points The assumptions of perfect competition imply that: A. individuals in the market accept the market price as given.
B. individuals can influence the market price. C. the price will be a fair price. D. the price will be low. Answer Key: A Question 5 of 10 10.0 Points Which of the following is true? A. Price and average revenue are never equal. B. Price and marginal revenue are seldom equal under conditions of perfect competition. C. When a firm is operating under perfectly competitive market conditions, price and marginal cost will always be equal if the firm is maximizing profits. D. Average revenue equals price times quantity. Answer Key: C Question 6 of 10 10.0 Points If a firm possesses monopoly power, it means that: A. the firm can set its own price based on its output decision. B. the firm's demand curve is always elastic. C. the firm is necessarily a monopoly. D. A and C are true. Answer Key: A Question 7 of 10 10.0 Points Marginal revenue: A. is the slope of the average revenue curve. B. equals the market price in perfect competition. C. is the change in quantity divided by the change in total revenue. D. is the price divided by the changes in quantity.
B. small number of firms producing similar products, with relatively easy entry for firms. C. large number of firms producing similar products, with relatively easy entry for firms. D. large number of firms producing identical products, with relatively easy entry for firms. Answer Key: C Question 2 of 10 10.0 Points Imperfect competition is: A. a market structure with no more than one firm in the industry. B. an industry in which all firms are price takers. C. a market structure where firms have a degree of monopoly power. D. described by all of the above. Answer Key: C Question 3 of 10 10.0 Points Imperfect competition includes: A. monopolistic competition and oligopoly. B. monopolistic competition and monopoly. C. perfect competition and monopoly. D. monopoly and oligopoly. Answer Key: A Question 4 of 10 10.0 Points A firm in monopolistic competition maximizes its profit by producing at the level at which: A. MC = ATC. B. MC = AR. C. MC = P. D. MC = MR.
Answer Key: D Question 5 of 10 10.0 Points An industry characterized by many firms, producing similar but differentiated products, in a market with easy entry and exit is called: A. perfect competition. B. monopoly. C. monopolistic competition. D. oligopoly. Answer Key: C Question 6 of 10 10.0 Points An oligopoly knows that its affect(s) its and that the of its rivals will affect it. A. actions; rivals; reactions B. price changes ; total revenue in a positive way; reactions C. actions rarely; rivals; actions D. price increases; total revenue in the long run only; large but not small price changes Answer Key: A Question 7 of 10 10.0 Points A concentration ratio is used to measure: A. efficiency. B. diseconomies of scale. C. marginal cost. D. market dominance. Answer Key: D Question 8 of 10 10.0 Points
