Total cost includes both variable costs and fixed costs. Variable costs (e.g. milk for a coffee shop) are
directly proportional to the output produced. Total variable cost depends on the number of units sold
and can be calculated by multiplying the quanti
Here are the market fundamentals:
Type of
Student
New Students
Number of Buyer
Students
Value
Fastidious
Frugal
300
300
$10
$22
Type of
Student
A
B
C
Former Students
Number of
Seller Cost for
Students
Used Book
200
$27
200
$15
200
$3
Can you always rearra
Consumers surplus is the difference between a consumers reservation price and the amount that he
actually has to pay. In this experimental market, where demanders reservation prices equal their Buyer
Values, a buyer gets consumers surplus equal to the dif
Elasticity measures how much a percentage change in price leads to a percentage change in quantity.
The formula for elasticity is the percentage change in quantity divided by the percentage change in
price. The same formula is used for elasticity of deman
Consumers surplus is the difference between a consumers reservation price and the amount that he
actually has to pay. In this experimental market, where demanders reservation prices equal their Buyer
Values, a buyer gets consumers surplus equal to the dif
Midterm
Chapter 1 & 2
1. Economics is the study of how scarce resources are allocated among
alternative uses.
2.
-Price in Production:
producers looks at market prices to see where profits can be made. High
prices means greater chances for profit so produ
Econ 102
Ch 20 Practice Test key
This practice test is not reflective of all material covered in class or the textbook.
1. Which of the following is correct?
a.
b.
c.
d.
Short run fluctuations in economic activity happen only in developing countries.
Duri
Econ 102
Ch 13 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. The primary economic function of the financial system is to
a. keep interest rates low.
b. provide expert advice to savers and investors
Econ 102
Ch 11 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. If real GDP is 5,100 and nominal GDP is 4,900, then the GDP deflator is
a. 104.1 so prices are higher than in the base year.
b. 104.1 so
Econ 101 and 102
Ch 4 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. Equilibrium quantity must increase when demand
a. increases and supply does not change, when demand does not change and supply
in
Econ 102
Ch 17 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. When the price level rises, the number of dollars needed to buy a representative basket of
a.
b.
c.
d.
goods
increases, and so the value
Econ 102
Ch 9 Practice Test KEY
This practice test is not reflective of all material covered in class or the textbook.
1. With which of the Ten Principles of Economics is the study of international trade most closely
connected?
a. People face tradeoffs.
b
1
Econ 102
Ch 3 Practice Test KEY
This practice test is not reflective of all material covered in class or the textbook.
1. Kevin is the CEO of a large firm and a homeowner who pays a landscaper to maintain his
lawn rather than do it himself. Kevin has de
1
Econ 102
Ch 10 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. For an economy as a whole,
a. wages must equal profit.
b. consumption must equal saving.
c. income must equal expenditure.
d. the numb
1
Econ 101 and 102
Ch 2 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. Economists, like mathematicians, physicists, and biologists,
a. make use of the scientific method.
b. try to address their subj
Econ 101 and 102
Ch 1 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. In most societies, resources are allocated by
a. a single central planner.
b. a small number of central planners.
c. those firms
Econ 102
Ch 12 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. A nation's standard of living is best measured by its
a. real GDP.
b. real GDP per person.
c. nominal GDP.
d. nominal GDP per person.
2.
Econ 102
Ch 15 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. Unemployment data are collected
a. from unemployment insurance claims.
b. through a regular survey of about 60,000 households.
c. throug
Econ 102
Ch 14 Practice Test
This practice test is not reflective of all material covered in class or the textbook.
1. Compounding refers directly to
a. finding the present value of a future sum of money.
b. finding the future value of a present sum of mo
1. Register the domain. (check with Secretary of State office that nothing exists like this)(check
federal and state trademark listings)
2. Settle on Features of the product
3. Create LinkedIn company page
4. Google Analytics
5. Google Webmaster tools
6.
1. The voting members of the Federal Open Market
Committee do NOT include:
a. William C. Dudley
b. Benjamin S. Bemanke
c. All other members of the Board of Governors
d. All other Presidents of Federal Reserve Banks
2. The Chairman of the Federal Reserve S
Econ 102
Practice Problems Ch 1-4
Multiple Choice, T/F (questions without a,b,c,d choices are T/F)
1. Equilibrium quantity must increase when demand
a. increases and supply does not change, when demand does not change and supply increases, and when both
d
Econ 102
Practice questions key
Ch 12, 13, 14, 15, and 16
Chapters are not separately identified. Practice problems not reflective of all theory/math/material covered.
Some of these will require a calculator with exponent function. For your tests, time wi
Econ 102
Practice Ch 17, 20, 21, and 22
Chapters not separately identified. Problems not reflective of theory/math/material covered.
a.
b.
c.
d.
1. In the graph of the money market, the money supply curve is
vertical. It shifts rightward if the Fed buys b