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UOP ECO 212 Week 2 Individual .pdf



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ECO 212 Week 2 Individual Supply and
Demand and Price Elasticity Quiz

Check this A+ tutorial guideline at
http://www.assignmentcloud.com/ECO212/ECO-212-Week-2-Individual-Supply-andDemand-and-Price-Elasticity-Quiz

Resources: Principles of Economics textbook and Tomlinson
Economics Videos


Prepare to take the Supply and Demand and Price Elasticity Quiz.

Questions Quiz week 2
1. The word that comes from the Greek word for "one who manages a
household" is
a. market.
b. consumer.
c. producer.
d. economy.

2. The word “economy” comes from the Greek word oikonomos, which
means
a. “environment.”
b. “production.”
c. “one who manages a household.”
d. “one who makes decisions.”
3. Resources are
a. scarce for households but plentiful for economies.
b. plentiful for households but scarce for economies.
c. scarce for households and scarce for economies.
d. plentiful for households and plentiful for economies.
4. Economics deals primarily with the concept of
a. scarcity.
b. poverty.
c. change.
d. power.
5. Which of the following questions is not answered by the decisions
that every society must make?
a. What determines consumer preferences?
b. What goods will be produced?
c. Who will produce the goods?
d. Who will consume the goods?

6. Albert Einstein once made the following observation about science:
a. "The whole of science is nothing more than the refinement of everyday
thinking."
b. "The whole of science is nothing more than an interesting intellectual
exercise."
c. "In order to understand science, one must rely solely on abstraction."
d. "In order to understand science, one must transcend everyday thinking."
7. Sir Isaac Newton's development of the theory of gravity after
observing an apple fall from a tree is an example of
a. controlled experiments that lead to the formulation of scientific theories.
b. being in the right place at the right time.
c. an idea whose time had come.
d. the interplay between observation and theory in science.
8. Which of the following statements applies to economics, as well as to
other sciences such as physics?
a. Experiments are considered valid only when they are conducted in a
laboratory.
b. Good theories do not need to be tested.
c. Real-world observations often lead to theories.
d. Economics, as well as other sciences, are concerned primarily with
abstract concepts.
9. The use of theory and observation is more difficult in economics than
in sciences such as physics due to the difficulty in

a. performing an experiment in an economic system.
b. applying mathematical methods to economic analysis.
c. analyzing available data.
d. formulating theories about economic events.
10. Which of the following statements is true?
a. Economists almost always find it easy to conduct experiments in order
to test their theories.
b. Economics is not a true science because economists are not usually
allowed to conduct experiments to test their theories.
c. Economics is a social science rather than a true science because it
cannot employ the scientific method.
d. Economists are usually not allowed to conduct experiments, and so they
must rely on natural experiments offered by history.
11. For each good produced in a market economy, the interaction of
demand and supply determines
a. the price of the good, but not the quantity.
b. the quantity of the good, but not the price.
c. both the price of the good and the quantity of the good.
d. neither price nor quantity, because prices and quantities are determined
by the sellers of the goods alone.
12. A competitive market is a market in which
a. an auctioneer helps set prices and arrange sales.
b. there are only a few sellers.
c. the forces of supply and demand do not apply.

d. no individual buyer or seller has any significant impact on the market
price.
13. The demand for a good or service is determined by
a. those who buy the good or service.
b. the government.
c. the producers who create the good or service.
d. those who supply the raw materials used in the production of the good
or service.
14. A competitive market is one in which
a. there is only one seller, but there are many buyers.
b. there are many sellers and each seller has the ability to set the price of
his product.
c. there are many sellers and they compete with one another in such a
way that some sellers are always being forced out of the market.
d. there are so many buyers and so many sellers that each has a
negligible impact on the price of the product.
15. In a competitive market,
a. only a few sellers sell the same product.
b. each seller has a limited degree of control over the price of his product.
c. if one buyer chooses to purchase a large quantity of the product, the
price will rise.
d. if one seller withholds his product from the market, prices will rise.
16. A good will have a more inelastic demand,
a. the greater the availability of close substitutes.

b. the broader the definition of the market.
c. the longer the period of time.
d. the more it is regarded as a luxury.
17. It is likely that
a. the demand for flat-screen computer monitors is more elastic than the
demand for monitors in general.
b. the demand for grandfather clocks is more elastic than the demand for
wristwatches.
c. the demand for cardboard is more elastic over a long period of time
than over a short period of time.
d. All of the above are correct.
18. It is likely that
a. the demand for natural gas is more elastic over a short period of time
than over a long period of time.
b. the demand for smoke alarms is more elastic than the demand for
Persian rugs.
c. the demand for bourbon whiskey is more elastic than the demand for
alcoholic beverages in general.
d. All of the above are correct.
19. When the price of bubble gum is $0.50, the quantity demanded is 400
packs per day. When the price falls to $0.40, the quantity demanded
increases to 600. Given this information and using the midpoint method, we
know that the demand for bubble gum is
a. inelastic.
b. elastic.

c. unit elastic.
d. perfectly inelastic.
20. Economists compute the price elasticity of demand as the
a. percentage change in price divided by the percentage change in
quantity demanded.
b. change in quantity demanded divided by the change in the price.
c. percentage change in quantity demanded divided by the percentage
change in price.
d. percentage change in quantity demanded divided by the percentage
change in income.
21. Economic profit is equal to
a. total revenue minus the explicit cost of producing goods and services.
b. total revenue minus the opportunity cost of producing goods and
services.
c. total revenue minus the accounting cost of producing goods and
services.
d. average revenue minus the average cost of producing the last unit of a
good or service.
22. Accounting profit is equal to
a. marginal revenue minus marginal cost.
b. total revenue minus the explicit cost of producing goods and services.
c. total revenue minus the opportunity cost of producing goods and
services.
d. average revenue minus the average cost of producing the last unit of a
good or service.

23. Economic profit
a. will never exceed accounting profit.
b. is most often equal to accounting profit.
c. is always at least as large as accounting profit.
d. is a less complete measure of profitability than accounting profit.
24. To an economist, it is conceivable that the objective that motivates an
individual entrepreneur to start a business arises from
a. an innate love for the type of business that he or she starts.
b. a desire to earn a profit.
c. an altruistic desire to provide the world with a good product.
d. All of the above are correct.
25. When a firm is making a profit-maximizing production decision, which
of the following principles of economics is likely to be most important to the
firm's decision?
a. The cost of something is what you give up to get it.
b. A country's standard of living depends on its ability to produce goods
and services.
c. Prices rise when the government prints too much money.
d. Governments can sometimes improve market outcomes.
26. Because the goods offered for sale in a competitive market are
largely the same,
a. there will be few sellers in the market.
b. there will be few buyers in the market.

c. buyers will have market power.
d. sellers will have little reason to charge less than the going market price.
27. Which of the following is NOT a characteristic of a perfectly
competitive market?
a. Firms are price takers.
b. Firms have difficulty entering the market.
c. There are many sellers in the market.
d. Goods offered for sale are largely the same.
28. When buyers in a competitive market take the selling price as given,
they are said to be
a. market entrants.
b. monopolists.
c. free riders.
d. price takers.
29. When firms are said to be price takers, it implies that if a firm raises
its price,
a. buyers will go elsewhere.
b. buyers will pay the higher price in the short run.
c. competitors will also raise their prices.
d. firms in the industry will exercise market power.
30. Which of the following statements best reflects a price-taking firm?
a. If the firm were to charge more than the going price, it would sell none of
its goods.


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