Survey of Economics Final
Exam
Course Introduction
Survey of Economics introduces students to fundamental economic concepts, principles, and analytical tools used to understand how societies allocate scarce resources. The course covers both microeconomics and macroeconomics, exploring topics such as supply and demand, market structures, consumer behavior, production, economic growth, inflation, unemployment, and the role of government in the economy. Emphasis is placed on real-world applications, enabling students to connect theory with current economic issues and decision-making processes at individual, business, and policy levels. No prior background in economics is required.
Recommended Textbook
Foundations of Economics 6th Edition by Robin Bade
Available Study Resources on Quizplus
20 Chapters
5153 Verified Questions
5153 Flashcards
Source URL: https://quizplus.com/study-set/1287
Page 2
Chapter 1: Getting Started
Available Study Resources on Quizplus for this Chatper
337 Verified Questions
337 Flashcards
Source URL: https://quizplus.com/quiz/25572
Sample Questions
Q1) A slope is measured as the
A) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis.
B) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis.
C) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis.
D) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis.
E) change in the value of variable on the x-axis divided by the change in the value of the variable on the y-axis.
Answer: C
Q2) Define marginal cost and marginal benefit.
Answer: Marginal cost is the opportunity cost of a one-unit increase in an activity.Marginal benefit is the benefit of a one-unit increase in an activity.
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: The Usand Global Economies
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/25573
Sample Questions
Q1) The charitable organization Creating Hope International trains women in Afghanistan to become tailors.This effort reduces
A) physical capital differences between advanced and developing economies.
B) entrepreneurship differences between advanced and developing economies.
C) agricultural differences between advanced and developing economies.
D) manufacturing differences between advanced and developing economies.
E) human capital differences between advanced and developing economies.
Answer: E
Q2) In the circular flow model,which of the following flows in the opposite direction from the flow of factors of production?
A) finished goods and services
B) wages, rent, interest, and profit
C) interests payments of Federal, state, and local governments
D) firm's profit incentives
E) the goods market
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: The Economic Problem
Available Study Resources on Quizplus for this Chatper
273 Verified Questions
273 Flashcards
Source URL: https://quizplus.com/quiz/25574
Sample Questions
Q1) "Comparative advantage" is defined as a situation in which one person can produce
A) more of all goods than another person.
B) more of a good than another person.
C) a good for a lower dollar cost than another person.
D) a good for a lower opportunity cost than another person.
E) all goods for lower opportunity costs than another person.
Answer: D
Q2) Suppose India and France have the same PPF,shown in the figure above.Based on their current production points,which is India's most likely future PPF?
A) PPF .
B) PPF .
C) PPF .
D) Either PPF or PPF .
E) None of the above because economic growth will not happen in India.
Answer: A
Q3) How is economic growth shown in a production possibilities frontier graph?
Answer: Economic growth is illustrated as an outward shift of the PPF.
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Demand and Supply
Available Study Resources on Quizplus for this Chatper
322 Verified Questions
322 Flashcards
Source URL: https://quizplus.com/quiz/25575
Sample Questions
Q1) The figure above shows the market for iPods.Which of the following creates a movement from point A to point B?
A) a requirement that all students at universities have an iPod
B) a decrease in the price of iPods
C) a decrease in the price of Zunes, a substitute for iPods
D) an increase in the price of iPods
E) an increase in people's incomes
Q2) Consider the market for cellular phones.Which of the following shifts the demand curve leftward?
A) studies showing using cellular phones can cause brain cancer
B) a decrease in the price of cellular phones
C) a decrease in the quantity demanded of cellular phones
D) an increase in the services provided by cellular phones, such as text messaging
E) an increase in the price of cellular phones
Q3) Explain the difference between a change in demand and a change in quantity demanded.What leads to each of these changes?
Q4) What are substitutes in production?
Q5) When does a shortage occur?
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Elasticities of Demand and Supply
Available Study Resources on Quizplus for this Chatper
335 Verified Questions
335 Flashcards
Source URL: https://quizplus.com/quiz/25576
Sample Questions
Q1) What effect does a price hike have on the total revenue of the producers?
Q2) In the figure above,the demand is unit elastic
A) at the point where the price is $3.00 per cup.
B) at the point where the price is $2.00 per cup.
C) at the point where the price is $4.00 per cup.
D) at the point where the price is $2.50 per cup.
E) at all points along the demand curve.
Q3) You are the brand manager of Crest toothpaste and you observe that when you increase the price of Crest,your total revenue increases.How is that possible?
Q4) The cross elasticity of demand is a measure of how
A) responsive consumers are to changes in the price of a product.
B) responsive suppliers are to changes in the price of a product.
C) demand for a product changes when the price of a substitute or complement changes.
D) total revenue changes when the price of a product changes.
E) demand for a product changes when income changes.
Q5) Explain the total revenue test.
Q6) If a decrease in price increases total revenue,what can you determine about the elasticity of demand for the good?
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Efficiency and Fairness of Markets
Available Study Resources on Quizplus for this Chatper
352 Verified Questions
352 Flashcards
Source URL: https://quizplus.com/quiz/25577
Sample Questions
Q1) At a competitive equilibrium with no externalities,taxes,subsidies,public goods,common resources,or high transactions costs,which of the following occurs?
i.an efficient outcome
ii.definitely a fair outcome when judged by the fair-results approach
iii.marginal cost equals marginal benefit
iv.producer surplus equals consumer surplus
A) i and iii
B) i, ii and iii
C) ii and iii
D) i, ii, iii and iv
E) only i
Q2) Which of the following government policies ensures market efficiency?
A) subsidy
B) tax
C) price regulations
D) quantity regulations
E) None of the above answers is correct.
Q3) If the price of a visit to Sea World exceeds the marginal cost of the visit by $13,a producer surplus exists for Sea World." Is this statement true or false?
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Government Actions in Markets
Available Study Resources on Quizplus for this Chatper
239 Verified Questions
239 Flashcards
Source URL: https://quizplus.com/quiz/25578
Sample Questions
Q1) In the figure above,the number of unemployed workers is
A) 4,000.
B) 3,000.
C) 2,000.
D) 5,000.
E) zero.
Q2) When a rent ceiling below the equilibrium rent is put in place,the outcome is
A) efficient because marginal benefit equals marginal cost.
B) inefficient because marginal benefit equals marginal cost.
C) inefficient because marginal benefit is greater than marginal cost.
D) inefficient because marginal benefit is less than marginal cost.
E) efficient because marginal benefit is greater than marginal cost.
Q3) A rent ceiling creates a deadweight loss
A) if it is set below the equilibrium rent.
B) if it is set equal to the equilibrium rent.
C) if it set above the equilibrium rent.
D) if it decreases the taxes the government collects in the housing market.
E) never, because if it did create a deadweight loss, the government would not impose it.
Q4) What are the effects of a rent ceiling set below the equilibrium rent?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Taxes
Available Study Resources on Quizplus for this Chatper
267 Verified Questions
267 Flashcards
Source URL: https://quizplus.com/quiz/25579
Sample Questions
Q1) To calculate the revenue government receives when a tax is imposed on a good,multiply the
A) pre-tax equilibrium price by the pre-tax quantity.
B) after-tax equilibrium price by the after-tax quantity.
C) tax by the pre-tax quantity.
D) tax by the after-tax quantity.
E) after-tax equilibrium price by the after-tax quantity and then subtract the pre-tax equilibrium price multiplied by the pre-tax quantity.
Q2) If the supply of capital is perfectly elastic,the incidence of a tax on capital income is
A) paid entirely by the suppliers of capital.
B) paid entirely by firms that demand capital.
C) shared equally between firms that demand capital and the suppliers of capital.
D) shared but not equally between firms that demand capital and the suppliers of capital.
E) unknown.
Q3) What are the two conflicting principles of fairness that apply to a tax system? Briefly explain each.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Global Markets in Action
Available Study Resources on Quizplus for this Chatper
276 Verified Questions
276 Flashcards
Source URL: https://quizplus.com/quiz/25580
Sample Questions
Q1) Economists argue for free trade in import markets because
A) all consumers and producers benefit from importing goods.
B) the gains to the U.S. producers outweigh the losses to the U.S. consumers.
C) the gains to the U.S. consumers outweigh the losses to the U.S. producers.
D) no one is made worse off by importing goods.
E) importing goods decreases total surplus.
Q2) The above figure shows the U.S.market for replacement cell phone batteries.With free trade,the United States imports ________ batteries and once the tariff illustrated in the figure is imposed,the United States imports ________ batteries.
A) 900,000; 700,000
B) 800,000; 400,000
C) 300,000; 100,000
D) 700,000; 300,000
E) 900,000; 100,000
Q3) Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations.However,are there any losers from such a policy change?
Q4) Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Externalities
Available Study Resources on Quizplus for this Chatper
300 Verified Questions
300 Flashcards
Source URL: https://quizplus.com/quiz/25581
Sample Questions
Q1) Which of the following is true?
A) MSC = MC + Marginal external cost.
B) MC = Marginal external cost - MSC.
C) MC = Marginal external benefit + MSC.
D) MSC = Marginal external cost + marginal external benefit.
E) MSC = Marginal external cost - marginal external benefit.
Q2) An example of someone bearing the burden of a negative consumption externality would be
A) Taylor living downwind from a feedlot.
B) LaShawn grows beautiful roses in her garden.
C) Jess's roommate smokes and she doesn't.
D) All of these are examples of someone bearing the burden of a negative consumption externality.
E) None of these is an example of someone bearing the burden of a negative consumption externality.
Q3) Discuss the difference between a private cost and a social cost.
Q4) Describe some of the external benefits associated with education.What can government do to encourage production of the efficient amount of education?
Q5) Why is it not efficient to eliminate all pollution?
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Public Goods and Common Resources
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/25582
Sample Questions
Q1) A good that is ________ and ________ is a ________.
A) rival; excludable; private good
B) rival; excludable; public good
C) nonrival; excludable; public good
D) rival; nonexcludable; private good
E) nonrival; nonexcludable; private good
Q2) Government bureaucracies over-provide public goods and grow larger because of their goal of ________ combined with ________ of the voters.
A) budget maximization; rational ignorance
B) budget minimization; irrational intelligence
C) budget maximization; minimum differentiation
D) budget maximization; irrational exuberance
E) minimum differentiation; budget maximization
Q3) How does the government determine the quota amount that will produce an efficient use of a common resource?
Q4) What is rational ignorance?
Q5) What is an individual transferable quota (ITQ)?
Q6) Is a sailboat purchased in Victoria,British Columbia,a private good or a public good?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Markets With Private Information
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/25583
Sample Questions
Q1) The fact that people who know they are risky drivers are more likely to buy auto insurance reflects
A) adverse selection..
B) moral hazard.
C) a separating equilibrium.
D) signaling.
E) the lemons problem.
Q2) The idea of an insurance company "pooling" the risk means that
A) the risk is completely eliminated from society.
B) the insurance company requires buyers to pay a large deductible.
C) the risk is spread over a large population.
D) the insurance company insists on a pooling equilibrium.
E) moral hazard and adverse selection are eliminated.
Q3) In the used car market,adverse selection is a problem primarily when A) sellers cannot judge buyers' creditworthiness.
B) buyers cannot signal their willingness to buy.
C) buyers cannot determine the quality of a used car.
D) sellers offer warranties on all used cars.
E) sellers and buyers both agree that a particular used car is a lemon.
Q4) Explain the concept of moral hazard.Give an example.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Consumer Choice and Demand
Available Study Resources on Quizplus for this Chatper
287 Verified Questions
287 Flashcards
Source URL: https://quizplus.com/quiz/25584
Sample Questions
Q1) Gertrude has a $15 budget to spend on soda and crackers.Soda costs $1 per bottle and crackers cost 50¢ each.The quantity of soda is measured on the vertical axis.If the price of soda increases to $2 per bottle and the price of crackers increase to $1 each,the
A) indifference curves shift inward.
B) indifference curves shift outward.
C) budget line shifts inward.
D) budget line shifts outward.
E) demand curve for soda shifts leftward.
Q2) You are studying with a friend,and your friend says "To maximize utility,a consumer must consume the combination of goods so that the marginal utility of good X equals the marginal utility of good Y." Explain whether your friend's statement is correct or incorrect.
Q3) Tom is stranded on a deserted island where he can only consume coconuts and crabs.Two of his indifference curves are in the figure above.
a.Would Tom prefer his consumption to be at point a or at point b? At point b or at point
c? Explain your answers.
b.Between points a and b,what is Tom's marginal rate of substitution for a crab?
Q4) Is "utility" another word for the cost we give up when we consume a good?
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Production and Cost
Available Study Resources on Quizplus for this Chatper
266 Verified Questions
266 Flashcards
Source URL: https://quizplus.com/quiz/25585
Sample Questions
Q1) As output increases,economies of scale occur when the
A) long-run average cost increases.
B) long-run average cost decreases.
C) short-run average total cost decreases.
D) long-run average cost stays constant.
E) long-run fixed cost decreases.
Q2) The main source of economies of scale is
A) reductions in the price of factors of production.
B) greater specialization of both labor and capital.
C) increasing average costs.
D) decreasing marginal product.
E) the ability to hire less labor.
Q3) The above table gives some production and cost information for Flaming Fernando's,a restaurant that sells Fiery Frijoles.What is the average total cost of producing 4,500 frijoles?
A) $2
B) $225
C) $9,000
D) $8,000
E) More information is needed to determine the answer.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Perfect Competition
Available Study Resources on Quizplus for this Chatper
275 Verified Questions
275 Flashcards
Source URL: https://quizplus.com/quiz/25586
Sample Questions
Q1) If firms in a perfectly competitive market are incurring economic losses,then as time passes firms ________ and the market ________.
A) enter; demand curve shifts leftward
B) enter; supply curve shifts rightward
C) exit; demand curve shifts leftward
D) exit; supply curve shifts rightward
E) exit; supply curve shifts leftward
Q2) A firm's marginal revenue is
A) the change in total revenue that results from a one-unit increase in the quantity sold.
B) total revenue minus total cost.
C) the change in total revenue minus the change in total cost.
D) the change in total revenue that results from an increase in the demand for the good or service.
E) less than the market price for a perfectly competitive firm.
Q3) What is a perfectly competitive firm's short-run supply curve?
Q4) Jimmy grows corn.His total revenue and total cost are in the above table.What quantity of corn maximizes his profit and what is his profit? What is the marginal revenue and marginal cost at this quantity?
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Monopoly
Available Study Resources on Quizplus for this Chatper
377 Verified Questions
377 Flashcards
Source URL: https://quizplus.com/quiz/25587
Sample Questions
Q1) The figure above shows a natural monopoly that the government must regulate.If the government uses ________,the firm produces ________ units per week.
A) the HHI; 50
B) an average cost pricing rule; 30
C) rate of return regulation; 40
D) social interest regulation; 30
E) a marginal cost pricing rule; 20
Q2) The figure above shows a natural monopoly that the government must regulate.Which of the following pairs most likely results in similar outcomes?
A) marginal cost pricing and rate of return regulation
B) marginal cost pricing and a two-part tariff
C) average cost pricing and rate of return regulation
D) predatory pricing and price caps
E) marginal cost pricing and price cap regulation
Q3) Describe the difference between social interest theory of regulation and the capture theory of regulation.
Q4) Describe the three general types of barriers.
Q5) Why are water companies considered a natural monopoly?
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Monopolistic Competition
Available Study Resources on Quizplus for this Chatper
213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/25588
Sample Questions
Q1) In the long run,advertising by all firms in a monopolistically competitive industry
A) increases all firms' demand.
B) decreases all firms' demand.
C) lowers all firms' costs.
D) might increase or decrease the firms' prices.
E) lowers all firms' prices.
Q2) If a large number of firms are competing,the market could be
A) perfect competition or monopolistic competition.
B) perfect competition or monopoly.
C) monopolistic competition or oligopoly.
D) monopolistic competition or monopoly.
E) oligopoly or monopoly.
Q3) It would be impossible for members of the fast-food industry to collude to fix prices because
A) there are too many fast-food firms in the market.
B) fast food is not durable.
C) there are not enough fast-food firms in the market.
D) the price of fast-food is too low.
E) demanders would not buy from firms that collude.
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 18: Oligopoly
Available Study Resources on Quizplus for this Chatper
222 Verified Questions
222 Flashcards
Source URL: https://quizplus.com/quiz/25589
Sample Questions
Q1) ________ is an agreement between a manufacturer and a distributor on the price at which a product will be resold.
A) Resale price maintenance
B) Price discrimination
C) Price fixing
D) Predatory pricing
E) A tying arrangement
Q2) In an oligopoly in which the firms have entered into a cartel agreement,the Nash equilibrium exhibits which of the following?
A) firms jointly maximizing profits
B) the firms cheating on the cartel agreement, which benefits society
C) production at a price and output level close to monopolistic competition in the long run
D) the firms cheating on the cartel agreement, which harms society
E) one firm cheating on the cartel agreement and the other firms complying with the cartel agreement.
Q3) Explain how the courts have ruled on price fixing.
Q4) Explain what a cartel is and the difficulties faced in maintaining a cartel.
Q5) What is the dilemma faced by firms in oligopoly?
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Markets for Factors of Production
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/25590
Sample Questions
Q1) The value of marginal product of labor curve
A) is upward sloping because firms want to hire more workers to increase production. B) shows the price of a factor of production multiplied by the amount of the factor employed.
C) is the same as a firm's supply of labor curve.
D) is downward sloping if each additional worker's marginal product is decreasing. E) is U-shaped.
Q2) Which of the following is a renewable resource?
i.a forest of pine trees grown by Georgia-Pacific
ii.oil reserves in Saudi Arabia
iii.the Everglades
A) i and ii
B) ii and iii
C) i and iii
D) i, ii, and iii
E) i only
Q3) Why might an individual decrease the quantity of labor he or she supplies when the wage rate increases? Briefly explain your answer.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Economic Inequality
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/25591
Sample Questions
Q1) Lorenz curves are
A) horizontal.
B) vertical.
C) upward sloping.
D) downward sloping.
E) straight lines.
Q2) Increased discrimination results in ________ of the workers discriminated against being hired and being paid ________ wage rates.
A) more; higher
B) more; lower
C) fewer; higher
D) fewer; lower
E) the same number; lower
Q3) Of the following major characteristics that lead to income disparity,the factor with the smallest impact is
A) sex.
B) race.
C) region of the country.
D) education.
E) number of people in the household.
To view all questions and flashcards with answers, click on the resource link above. Page 22