Survey of Economics
Mock Exam
Course Introduction
Survey of Economics provides a broad overview of fundamental economic principles and concepts, introducing students to both microeconomics and macroeconomics. Topics include supply and demand, market structures, consumer behavior, production and costs, monetary and fiscal policy, and the role of government in the economy. The course emphasizes real-world applications, fostering an understanding of how economic forces shape individual choices, business decisions, and public policy in a global context. It is designed for students from diverse academic backgrounds who seek to develop economic literacy and analytical skills relevant to personal, professional, and civic life.
Recommended Textbook
Microeconomics Principles Applications and Tools 9th Edition by Arthur OSullivan
Available Study Resources on Quizplus
18 Chapters
2638 Verified Questions
2638 Flashcards
Source URL: https://quizplus.com/study-set/1680 Page 2
Chapter 1: Introduction: What Is Economics
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/33304
Sample Questions
Q1) If one variable declines as the other variable declines,the two variables are negatively related.
A)True
B)False
Answer: False
Q2) Adam Smith is
A) considered the founder of economics.
B) responsible for a branch of economics bearing his name.
C) responsible for refining the model of supply and demand.
D) the author of this text.
Answer: A
Q3) A pie chart show the relationship between two variables.
A)True
B)False
Answer: False
Q4) Most modern economic analysis is positive in nature,but many issues also involve questions with normative economics.
A)True
B)False
Answer: True
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: The Key Principles of Economics
Available Study Resources on Quizplus for this Chatper
199 Verified Questions
199 Flashcards
Source URL: https://quizplus.com/quiz/33305
Sample Questions
Q1) When deciding whether to engage in an activity or how much to do,people should follow
A) the principle of microeconomics.
B) the principle of macroeconomics.
C) the marginal principle.
D) the law of supply and demand.
Answer: C
Q2) According to the marginal principle,a rational individual should undertake an economic activity as long as the
A) marginal benefit exceeds marginal cost.
B) marginal benefit is less than marginal cost.
C) marginal benefit equals marginal cost.
D) total benefit equals total cost.
Answer: A
Q3) Producing more output in an existing production facility by increasing the number of workers sharing the facility will bring into effect the principle of ________.
Answer: diminishing returns
Q4) By making acquisitions,resources are used that could have been used to ________.
Answer: acquire something else
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Exchange and Markets
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/33306
Sample Questions
Q1) What are some of the sources of market failure?
Answer: people not bearing the full costs of their decisions,public goods,imperfect information,imperfect competition
Q2) A role of government is to ensure firms bear the full costs of their production.
A)True
B)False
Answer: True
Q3) If the banking industry is unable to review a borrower's credit history,then the market will experience failure caused by
A) imperfect information.
B) public goods.
C) perfect information.
D) imperfect competition.
Answer: A
Q4) Which of the following is NOT a public good?
A) national defense
B) space exploration
C) a hamburger
D) a levee
Answer: C
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Demand,supply,and Market Equilibrium
Available Study Resources on Quizplus for this Chatper
279 Verified Questions
279 Flashcards
Source URL: https://quizplus.com/quiz/33307
Sample Questions
Q1) What does an increase in population do to the demand for a product?
Q2) The law of supply states that
A) firms supply more of a product as consumer income rises.
B) firms supply more of a product as consumer income falls.
C) firms supply more of a product as the price of the product rises.
D) firms supply more of a product as the price of the product falls.
Q3) When the price of a product decreases,the demand for a substitute product A) decreases.
B) increases.
C) changes to balance the price change.
D) none of the above
Q4) If the equilibrium price of a good increases and the equilibrium quantity of the good decreases,we can conclude that A) demand increased.
B) demand decreased.
C) supply increased.
D) supply decreased.
Q5) A permanent excess supply of a product is possible when the government sets a minimum price that is ________ than the equilibrium price.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Elasticity: a Measure of Responsiveness
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/33308
Sample Questions
Q1) The price elasticity of supply is determined by how rapidly production costs increase as the total output of the industry increases.
A)True
B)False
Q2) Assume that the price elasticity of demand for glass is 1.7 and the price elasticity of supply for glass is 0.8.If supply rises by 18%,the price of glass will
A) rise by 7.2%.
B) fall by 13.88%.
C) rise by 13.88%.
D) fall by 7.2%.
Q3) Recall the Application.In the short run,consumers have little time to respond to changes in the price of gasoline,and therefore the demand for gasoline is ________ in the short run compared to the long run.
A) more elastic
B) perfectly inelastic
C) unit elastic
D) less elastic
Q4) List two determinants of price elasticity of demand.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Market Efficiency and Government Intervention
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/33309
Sample
Questions
Q1) Figure 6.5 shows the market for bananas.Shade in the area of consumer surplus.Use the information provided to calculate consumer surplus.
Q2) Figure 6.9 shows the market for tobacco.If the government has no restrictions on imported tobacco,what will be the price of tobacco and the level of tobacco produced? If the government passes a law banning tobacco imports,what happens to the price of tobacco and the quantity of tobacco sold?
Q3) Figure 6.7 shows the supply and demand curves for human kidneys.If the government allowed the market to seek equilibrium,then
A) 50 kidneys are donated.
B) 30 kidneys are donated.
C) 20 kidneys are donated.
D) 0 kidneys are donated.
Q4) Consumer surplus is the difference between the price that a buyer pays and the price a seller requires.
A)True
B)False
Q5) What is the deadweight loss of a tax?
Q6) Why is the market equilibrium efficient?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Consumer Choice: Utility Theory and Insights
From Neuroscience
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/33310
Sample Questions
Q1) An individual demand curve shows the relationship between the price of a product and the quantity demanded by a rational consumer.
A)True
B)False
Q2) The satisfaction experienced from consuming a good or service is referred to as A) utility.
B) marginal utility.
C) the law of diminishing marginal utility.
D) all of the above
Q3) When a decrease in the price for wine increases Adam's real income,Adam will buy more of all normal goods.If wine is a normal good,then Adam will buy more wine due to A) law of demand.
B) substitution effect.
C) income effect.
D) law of supply.
Q4) The law of diminishing marginal utility implies that demand curves will be upward sloping.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Production Technology and Cost
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/33311
Sample Questions
Q1) The law of diminishing returns applies in
A) the short run and the long run.
B) the long run only.
C) the short run only.
D) neither the short run nor the long run.
Q2) Total variable cost
A) increases as output increases.
B) is constant as output increases.
C) decreases as output increases.
D) is lowest for labor-intensive technologies.
Q3) Refer to Figure 8.2.The marginal product of the sixth worker is A) -5.
B) 0.
C) 5.
D) 50.
Q4) If a firm's long-run average cost curve is horizontal,the firm is experiencing economies of scale.
A)True
B)False
Q5) Describe the relationship between marginal cost and average cost.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Perfect Competition
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/33312
Sample Questions
Q1) What does it mean for a firm to be suffering an economic loss? Does this imply that the firm is incurring a loss in the accounting sense? Explain.
Q2) In the form of market organization called "perfect competition," the firms tend to be ________ and the product they sell is ________.
A) large; identical B) small; different C) large; different D) small; identical
Q3) Recall the Application.If the minimum average total cost for switchgrass farmers is $55 per ton and the minimum average variable cost is $30 per ton,then at a price of $35 per ton in the short run the switchgrass farmer will A) shut down, that is bring no switchgrass to market. B) operate and lose money.
C) make a zero economic profit.
D) make a positive economic profit.
Q4) In the long run,if product prices rise,firms will not produce more output.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Monopoly and Price Discrimination
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/33313
Sample Questions
Q1) Refer to Figure 10.1.The marginal revenue of the fifth pound of cheese is
A) $1.
B) $2.
C) $5.
D) $25.
Q2) Refer to Figure 10.6.At the profit-maximizing level of output,total revenue is
A) $10,000.
B) $20,000.
C) $40,000.
D) $50,000.
Q3) Refer to Figure 10.5.The profit-maximizing price for the Memory Company's high school yearbook is
A) $0.
B) $9.
C) $16.
D) $20.
Q4) What is a government franchise? Give an example.
Q5) The deadweight loss from monopoly is a measure of efficiency from monopoly. A)True B)False
12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Market Entry and Monopolistic Competition
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/33314
Sample Questions
Q1) In the long run,which two curves are tangent for a firm in monopolistic competition?
A) marginal cost and marginal revenue
B) marginal cost and demand
C) average total cost and demand
D) average total cost and marginal revenue
Q2) In some monopolistically competitive markets,products are differentiated by location.
A)True
B)False
Q3) Which of the following characteristics is shared by both monopolistically competitive markets and perfectly competitive markets?
A) no barriers to entry
B) identical products across sellers
C) small number of interdependent sellers
D) firms face downward-sloping demand curves
Q4) Empirical studies have shown that entry leads to lower prices and profit.
A)True
B)False
Q5) What causes firms to want to enter a monopolistically competitive market?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Oligopoly and Strategic Behavior
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/33315
Sample Questions
Q1) Firms in an oligopoly can increase profit by
A) jointly acting to reduce output and increase prices.
B) independently acting to increase price.
C) acting alone and refusing to join the group.
D) none of the above
Q2) Refer to Figure 12.8.If both firms follow their dominant strategies,Firm A will earn profits equal to
A) $700.
B) $500.
C) $200.
D) $100.
Q3) Refer to Figure 12.7.The numerical data show daily profits for each of the two firms when they choose a specific pricing strategy.If both firms choose a high-price strategy,
A) Omega will earn $300 daily profit and Zeta will earn $100 daily profit.
B) Omega will earn $100 daily profit and Zeta will earn $300 daily profit.
C) Both firms will earn $200 daily profit.
D) Both firms will earn $150 daily profit.
Q4) Assuming that firms do not collude,compare the market outcome under oligopoly with the outcome under monopoly.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Controlling Market Power: Antitrust and Regulation
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/33316
Sample Questions
Q1) A natural monopoly occurs when
A) the scale economies in production are so large that only a single firm can survive. B) there are firms joining together to limit output and raise prices.
C) the government intervenes by putting barriers such as licenses or certifications.
D) there are patents.
Q2) The Federal Trade Commission blocked the merger between Office Depot and Staples because there was evidence that the merger would increase competition in the office supplies industry.
A)True
B)False
Q3) From a business perspective,the main problem with predatory pricing is that it never ends and the firm must repeatedly lose money to drive out new competitors.
A)True
B)False
Q4) Describe the Sherman Antitrust Act.
Q5) Name three industries in which the government has broken up a monopoly.
Q6) Describe the Clayton Act.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Imperfect Information: Adverse Selection and Moral Hazard
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/33317
Sample Questions
Q1) Recall the Application.There is asymmetric information in the kiwifruit market because
A) buyers have more information than sellers.
B) sellers have more information than buyers.
C) both the buyers and sellers have complete information.
D) sellers have the same information as the buyers.
Q2) A good driver who becomes more reckless after obtaining automobile insurance is an example of moral hazard.
A)True
B)False
Q3) Suppose that buyers are willing to pay $1,000 for a plum used computer and $300 for a lemon.If buyers expect 40% of the used computers to be plums,what is the maximum amount that buyers will be willing to pay for a used computer?
Q4) Explain why the insurance market suffers from the adverse-selection problem.
Q5) Health insurance companies are often at an advantage because they must pick from a desirable selection of customers.
A)True
B)False
Q6) What is adverse selection?
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Public Goods and Public Choice
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/33318
Sample Questions
Q1) What defines a situation where a person consumes a good without having to pay for it?
A) the rival problem
B) the rival in consumption problem
C) the free-rider problem
D) the nonrival in consumption problem
Q2) The purchase of fire extinguishers by apartment dwellers provides benefits to their neighbors.Explain why this situation leads to an inefficient outcome.
Q3) Which of the following contains most of the characteristics of a public good?
A) education
B) trash collection
C) public transportation
D) fireworks shows
Q4) A harbor lighthouse that guides approaching ships is an example of
A) a public good.
B) a private good.
C) a monopoly.
D) a good that is rival.
Q5) Explain the difference between private and public goods.
Q6) What is the median-voter rule?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: External Costs and Environmental Policy
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/33319
Sample Questions
Q1) A market for pollution permits can efficiently allocate the right to pollute.
A)True
B)False
Q2) If we compare the effects of a pollution tax with those of a command-and-control policy,production cost will be
A) the same under a command-and-control policy and a pollution tax.
B) higher under a command-and-control policy than they would be under a pollution tax.
C) less under a command-and-control policy than they would be under a pollution tax.
D) none of the above
Q3) List two reasons why command-and-control policies may be inefficient.
Q4) Explain how a pollution tax on automobiles would work toward effectively internalizing an external cost.
Q5) To internalize the external costs from traffic congestion,policymakers could
A) reduce the number of drivers' licenses.
B) require smaller cars to be sold.
C) establish a congestion tax.
D) build fewer highways.
Q6) What role can the government play in correcting for external costs?
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: The Labor Market and the Distribution of Income
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/33320
Sample Questions
Q1) The demand for labor
A) is a derived demand.
B) depends on the demand for the output the labor can be used to produce.
C) is affected by the value placed by the market on the output produced by labor.
D) all of the above
Q2) Which one of the following groups had the lowest incidence of poverty in 2010?
A) married couples
B) Asian households
C) 65 years of age and older
D) female-headed households
Q3) What happens when a firm encounters diminishing returns? What causes diminishing returns?
Q4) Refer to Figure 17.2.If the hourly wage increases from $9 to $12,then
A) quantity demanded for labor will rise.
B) demand for labor will decrease.
C) quantity supplied of labor will increase.
D) supply of labor will fall.
Q5) What are the effects of a minimum wage that is placed above the market equilibrium wage?
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: International Trade and Public Policy
Available Study Resources on Quizplus for this Chatper
224 Verified Questions
224 Flashcards
Source URL: https://quizplus.com/quiz/33321
Sample Questions
Q1) Suppose Nation A produces only two goods,apples and oranges.If Nation A produces only apples,it can make 16 apples per day.If Nation A produces only oranges,it can make 4 oranges per day.If the country has a constant production trade-off between apples and oranges,then the opportunity cost of one apple in Nation A is
A) 0.25 oranges.
B) 2 oranges.
C) 4 oranges.
D) 16 oranges.
Q2) The production possibilities curve represents the set of all
A) feasible combinations of goods given that a nation's resources are fully employed. B) factors of production that can be used to manufacture goods and services.
C) combinations of goods and services that can be used in the production of other goods and services.
D) nonlinear forms of production in the economy.
Q3) What countries are members of the DR-CAFTA?
Q4) National policy always overrides free trade in matters of environmental concern.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20