ECN 151 Final S22

Front

What is the marginal cost of Jacob ordering a burrito instead of a taco if burritos cost $5 and tacos cost $3?

Back

$1

Answer explanation

The marginal cost of a burrito is $2, split evenly is $1.

Front

Economic choice and competitive behavior are the result of

Back

Scarcity.

Front

With voluntary exchange,

Back

Both the buyer and the seller will be made better off.

Front

Other things constant, a decrease in the demand for hair dryers will

Back

Decrease the demand for hair dryer manufacturing workers.

Front

When a price floor is above the equilibrium price,

Back

Quantity supplied will exceed quantity demanded, so there will be a surplus.

Front

Which of the following would most likely increase the demand for peanut butter?
Options:
The discovery that excessive consumption of peanut butter is harmful to one’s health,
Crop failures that raise the price of peanuts,
The invention of a new product that consumers think is a good substitute for peanut butter,
A decrease in the price of jelly, a good that is often used with peanut butter

Back

A decrease in the price of jelly, a good that is often used with peanut butter

Front

“A reduction in gasoline prices caused the demand for gasoline to increase. The lower gas prices also led to an increase in demand for large cars, causing their prices to rise.” Theses statements

Back

Contain one error; the lower gasoline prices would cause an increase in the quantity demanded of gasoline, not an increase in demand.

Front

When the market for a good is in equilibrium,

Back

The total value created for consumers will equal the total cost of production for business firms.

Answer explanation

This is the equivalent of saying supply=demand.

Front

If cable TV service and satellite TV are substitutes, what happens when the price of cable changes?

Back

A decrease in the price of cable will decrease the demand for satellite TV.

Front

Which of the following sayings best reflects the concept of opportunity cost? Options: “You can’t teach an old dog new tricks.”, “I have a baker’s dozen”, “Times is money.”, “There’s no business like show business”

Back

“Times is money.”