Econ Final Exam Review Questions

According to the graph, what was the price on supply curve 1 (S1) of 25 million pounds of coffee?

• $6

• $8

• $4

• $15

Microeconomics focuses on

• The economy as a whole

• Individual markets

• Government policies

• International trade

Refer to Graph 4-5. According to the graph, what are the equilibrium price and quantity?

• $7, 20.

• $7, 60.

• $5, 40.

• $3, 60.

The government should ban smoking in public places.

• Positive Economic Statement

• Normative Economic Statement

According to the graph, what will be created by the price ceiling?

• increase in demand

• increase in supply

• surplus

• shortage

The MAIN GOAL of every business in a market economy is:

• make profit

• cheat the government

• MAXIMIZE profit

• sell stock

Which of the following scenarios would result in the shifting demand curve shown here?

• Increase in consumers' incomes

• A good or service becomes out of style

• Suppliers find new resources

• Government decides to tax the good/service more

Which of the following countries has the highest GDP?

• United States

• China

• Japan

• Germany

The cost of adding AN ADDITIONAL output

• variable cost

• fixed cost

• marginal cost

• sunk cost

What is the difference between a deficit and the national debt?

• A deficit is the yearly shortfall, while the national debt is the total amount owed.

• A deficit is the total amount owed, while the national debt is the yearly shortfall.

• A deficit and the national debt are the same thing.

• A deficit is the amount of money a country has, while the national debt is the amount it spends.