Question 1

-At point A of Figure 3 within Figure 3.1, demand is

Accepted Answer

A) elastic. 
B) inelastic. 
C) perfectly inelastic. 
D) perfectly elastic. 
A) elastic. 
B) inelastic. 
C) perfectly inelastic. 
D) perfectly elastic.

Question 2

If the price of a good rises by 10% and the percentage increase in the total amount consumers spend on the good is 5% then the good is

Accepted Answer

A) elastic. 
B) inelastic. 
C) unit elastic. 
D) perfectly inelastic. 
A) elastic. 
B) inelastic. 
C) unit elastic. 
D) perfectly inelastic.

Question 3

The net cost to society from prohibiting the operation of a competitive market in equilibrium is

Accepted Answer

A) lost consumer surplus only. 
B) lost producer surplus only. 
C) lost producer profits only. 
D) a deadweight loss. 
A) lost consumer surplus only. 
B) lost producer surplus only. 
C) lost producer profits only. 
D) a deadweight loss.

Question 4

The cross price elasticity for low mpg (miles per gallon; gas mileage)cars for a change in the price of gasoline is likely to be

Accepted Answer

A) Negative 
B) Zero 
C) Positive and greater than 1 
D) Positive and less than 1 
A) Negative 
B) Zero 
C) Positive and greater than 1 
D) Positive and less than 1

Question 5

The cross price elasticity for computer peripherals (mouse, monitors, printers)for a change in the price of computers (the CPU)is likely to be

Accepted Answer

A) Negative 
B) Zero 
C) Positive and greater than 1 
D) Positive and less than 1 
A) Negative 
B) Zero 
C) Positive and greater than 1 
D) Positive and less than 1

Question 6

If the percentage change in price is 10% and the percentage change in quantity supplied is 5% then the supply for the good is

Accepted Answer

A) elastic. 
B) inelastic. 
C) unit elastic. 
D) perfectly inelastic. 
A) elastic. 
B) inelastic. 
C) unit elastic. 
D) perfectly inelastic.

Question 7

If the percentage change in quantity supplied is 10% and the percentage change in price is 10% then the supply for the good is

Accepted Answer

A) elastic. 
B) inelastic. 
C) unit elastic. 
D) perfectly inelastic. 
A) elastic. 
B) inelastic. 
C) unit elastic. 
D) perfectly inelastic.

Question 8

If there is no change in price that can alter the quantity supplied then the supply for the good is

Accepted Answer

A) perfectly elastic. 
B) inelastic. 
C) perfectly unit elastic. 
D) perfectly inelastic. 
A) perfectly elastic. 
B) inelastic. 
C) perfectly unit elastic. 
D) perfectly inelastic.

Question 9

For a given increase in supply, the condition of demand that will result in the most significant change in price is when demand is

Accepted Answer

A) elastic. 
B) inelastic. 
C) perfectly elastic. 
D) perfectly inelastic. 
A) elastic. 
B) inelastic. 
C) perfectly elastic. 
D) perfectly inelastic.

Question 10

If the price of a good increases by 5% and the quantity demanded remains unchanged, then at that price, the good is

Accepted Answer

A) elastic. 
B) inelastic. 
C) perfectly inelastic. 
D) perfectly elastic. 
A) elastic. 
B) inelastic. 
C) perfectly inelastic. 
D) perfectly elastic.

Question 11

An increase in supply will always

Accepted Answer

A) increase producer surplus. 
B) decrease consumer surplus. 
C) decrease producer surplus. 
D) increase consumer surplus. 
A) increase producer surplus. 
B) decrease consumer surplus. 
C) decrease producer surplus. 
D) increase consumer surplus.

Question 12

A price excludable public good is such that

Accepted Answer

A) Rivalry holds but exclusivity does not. 
B) Both rivalry and exclusivity hold. 
C) Exclusivity holds but rivalry does not. 
D) Neither rivalry nor exclusivity hold. 
A) Rivalry holds but exclusivity does not. 
B) Both rivalry and exclusivity hold. 
C) Exclusivity holds but rivalry does not. 
D) Neither rivalry nor exclusivity hold.

Question 13

If the price of a good rises by 10% and the percentage increase in the total amount consumers spend on the good is 15% then the good is

Accepted Answer

A) elastic. 
B) inelastic. 
C) unit elastic. 
D) perfectly inelastic. 
A) elastic. 
B) inelastic. 
C) unit elastic. 
D) perfectly inelastic.

Exam 3: The Concept of Elasticity and Consumer and Producer Surplus

-At point A of Figure 3 within Figure 3.1, demand is

If the price of a good rises by 10% and the percentage increase in the total amount consumers spend on the good is 5% then the good is

The net cost to society from prohibiting the operation of a competitive market in equilibrium is

The cross price elasticity for low mpg (miles per gallon; gas mileage)cars for a change in the price of gasoline is likely to be

The cross price elasticity for computer peripherals (mouse, monitors, printers)for a change in the price of computers (the CPU)is likely to be

If the percentage change in price is 10% and the percentage change in quantity supplied is 5% then the supply for the good is

If the percentage change in quantity supplied is 10% and the percentage change in price is 10% then the supply for the good is

If there is no change in price that can alter the quantity supplied then the supply for the good is

For a given increase in supply, the condition of demand that will result in the most significant change in price is when demand is

If the price of a good increases by 5% and the quantity demanded remains unchanged, then at that price, the good is

An increase in supply will always

A price excludable public good is such that

If the price of a good rises by 10% and the percentage increase in the total amount consumers spend on the good is 15% then the good is

Economics: the Study of Opportunity Cost

Supply and Demand

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

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