Study guides, Class notes & Summaries

Econ 101 Final Exam Brent Kreider| with full latest solution What is the difference between a positive and normative statement? - A positive statement is based on facts and a normative statement is an opinion. If I have to drop out of college, it will cost me all of the tuition I have paid and the income I could have earned during those years while I was in college. True or false. - False because income should be considered a sunk cost and therefore not relevant to the question. Tonight I...

ECON 101 2024 UPDATE COMPLETE QUESTIONS AND VERIFIED DETAILED ANSWERS GRADE A+

ECON 101 FINAL EXAM LATEST QUESTIONS AND ANSWERS (VERIFIED REVISED FULL EXAM)

The cost of building a new interstate highway system is reported to be high at $25 billion. Does it necessarily follow that the interstate highway is not worth building?No, because the benefits of building a new interstate highway system may be greater than $25 billion. A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.10 to 0.07 while raising the number of accidents per period from 35,000 to any more than50,000 A mand...

Marginal revenue product measures the decline in product price that a firm must accept to sell the extra output of one more worker. increase in total resource cost resulting from the hire of one extra unit of a resource. increase in total revenue resulting from the production of one more unit of a product. AMOUNT BY WHICH THE EXTRA PRODUCTION OF ONE MORE WORKER INCREASES A FIRM'S TOTAL REVENUE. If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of g...

Economists play two roles: 1. Scientists: try to explain the world 2. Policy advisors: try to improve it Model: a highly simplified representation of a more complicated reality. Economists use models to study economic issues. Examples of Models Road Map, Model of Human in A&P, Model Airplane The Circular-Flow Diagram: Two types of actors? Two types of Markets? a visual model of the economy, shows how dollars flow through markets among households and firms Actors: Households & Firms ...

Econ 101: Exam 2 When the price goes down, the quantity demanded goes up. The price elasticity of demand measures: A) how much the price goes down. B) how much the equilibrium price goes up. C) the responsiveness of the price change to an income change. D) the responsiveness of the quantity change to the price change. - ANSWER D The price of gasoline rises 5% and the quantity of gasoline purchased falls 1%. The price elasticity of demand is equal to _____, and demand is described as ____...

ECON 101: Chapter 14 QUESTION AND CORRECT ANSWER 2023//2024 A 1) Which of the following is NOT a characteristic of the market structure for monopolistic competition? A) Firms are price takers. B) There are a large number of firms. C) Firms are free to enter and exit. D) Firms compete on product quality, price, and marketing. C 2) Brand names are an example of A) economies of scale. B) illegal barriers to entry. C) product differentiation. D) oligopoly. C 3) Monopolistic comp...

ECON 101 DSM 4 Exam - Questions and Answers Black Markets may arise if: price ceilings exist Some people believe that there should be a legally determined minimum price for farm products such as milk. A limit on the price of milk would be an example of: a milk price floor Prolonged agricultural surpluses can arise if governments: set the price above equilibrium Price controls that put a price ceiling on goods and services create: Shortages

ECON 101 DSM 3 Exam - Questions and Answers Given linear demand curves, if demand and supply increase by identical amounts, then: the equilibrium price stays the same and the equilibrium quantity rises If the demand curve remains the same, and the supply curve shifts left, then: When supply decreases, a ______ develops at the original price. Equilibrium price will ___________ and equilibrium quantity will _____________ as a new equilibrium is established. Shortage; rise; fall Assume the cost o...

ECON 101 DSM 2 Exam - Questions and Answers Contracts, insurance, patents, and accounting rules are: inventions that make the market work better The principle of increasing marginal opportunity cost states that the more resources are devoted to any activity, the ________ the payoff to devoting additional resources to that activity Smaller An outward shift on the PPF curve is most lively caused by: a technological advance that affects both variables In what type of economy does the government d...