Econ Section 1

Which of the following data would a demand schedule display?

• the quantity of grapes sold based on price per pound
• the number of apples sold based on regional preferences
• the supply of bananas grown based on market demand
• the level of demand for kale based on changing market tastes
• the amount of avocados produced based on annual weather conditions

In which of the following situations would a tax MOST likely burden consumers more than producers?

• The market is a monopoly.
• The government ensures the tax only affects consumers.
• Producer surplus is higher than consumer surplus.
• Supply is more elastic than demand.
• Consumer surplus is higher than producer surplus.

Which of the following wealth distributions, in a population of 5 people with $10 worth of goods, would NOT satisfy the Pareto efficiency?

• Two people have $2.50, and three people have $1.
• All five people have $2 each, with no remainder.
• Three people have $3, and two people have $0.50.
• One person has $6, and four people have$1.
• Four people have $1.50, and one person has $4.

Which term refers to public opinion’s effect on prices?

• morals
• commonality
• taste
• ethics
• default

A decrease in a good's price leads to increased demand for another good. The two goods are

• complements
• indifferent
• oligopolistic
• elastic
• substitutes

Which of the following items is NOT part of the production cost of antifreeze?

• quality testing
• wages
• sales tax
• chemicals
• electricity

Which type of good experiences the LOWEST elasticity of demand?

• a good with a close substitute
• a good within a broadly defined market
• a good with high brand loyalty
• a good with a short-term price increase
• a good regarded as a necessity

Higher income levels will likely result in a decrease in demand for

• fancy salads
• airplane tickets
• used cars
• violin lessons
• smartphones

Which of the following factors is MOST directly correlated to marginal utility?

• quantity consumed
• quantity ordered
• quantitity discarded
• quantity desired
• quantity offered

Which of the following concepts does a drought MOST exemplify?

• rationality
• gains from trade
• scarcity
• trade-offs
• opportunity cost