Exam 1 - Question 1 Multiple Choice 3 of 3 points Since the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1 Multiple Choice 3 of 3 points Since the test of a theory is its ability to predict, and since economics deals with human beings who can think and respond in a variety of ways, can economic theories really be tested? Selected Answer: Yes, since on the average human beings will respond predictably to changes in personal costs and benefits. Correct Answer: Yes, since on the average human beings will respond predictably to changes in personal costs and benefits. Question 2 Multiple Choice 3 of 3 points Which of the following could be considered to be a secondary effect caused by making drugs such as cocaine illegal? Selected Answer: All of the above would be considered secondary effects of making drugs illegal. Correct Answer: All of the above would be considered secondary effects of making drugs illegal. Question 3 Multiple Choice 3 of 3 points When a good is scarce, Selected Answer: both b and c are correct. Correct Answer: both b and c are correct. Question 4 Multiple Choice 0 of 3 points
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
In Figure 3-3, if the initial demand for margarine were D 1 , the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as Selected Answer: a shift in the demand curve to D 2 . Correct Answer: a movement upward to the left along the original demand curve D 1 . Question 5 Multiple Choice 3 of 3 points According to the basic principle of economics, individuals will buy less of a commodity, compact discs, for example, if the price rises. However, if the price rises between period 1 and period 2, we may not observe people buying fewer compact discs because Selected Answer: other factors, such as the income of consumers, may have also changed, offsetting the expected effect on compact disc sales. Correct Answer: other factors, such as the income of consumers, may have also changed, offsetting the expected effect on compact disc sales. Question 6 Multiple Choice 0 of 3 points A local restaurant offers an "all you can eat" Sunday brunch for $12. Susan eats four servings but leaves half of a fifth helping uneaten. Why? Selected Answer: The total value she places on brunch today exactly equals $12. Correct Answer:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This test prep was uploaded on 04/15/2008 for the course ECON 2302 taught by Professor Powers during the Spring '08 term at Navarro College.

Page1 / 7

Exam 1 - Question 1 Multiple Choice 3 of 3 points Since the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online