EGEC **** dumb exam
Mary saw a bangle bracelet at an accessories shop that she liked and told her friend Susan that the most she would pay for it was $43.00. When she found out the price was $27.00, she immediately bought it and gained _____ in consumer surplus. (Enter your response rounded to two decimal places) If Mary was to buy another bangle bracelet, her additional consumer surplus would______
$16, decrease
Jonathan works at a convenience store and makes note of changes to sales after the price of liquid soap unexpectedly increases by 15 percent. He notices that the sale of shampoo decreases by 3 percent and the sale of lotion increases by 10 percent. The cross-price elasticity of demand between liquid soap and shampoo is ____
-0.2
If the percentage change in quantity demanded for a good is an increase of 25%, when the price of its substitute increases by 30%, the cross-price elasticity is____
0.83
Joey goes to a supermarket to buy shorts (s) and T-shirts (t). His budget constraint is given by $15 s + $3 t = $ 45. Suppose Joey purchases only T-shirts. Given his budget constraint, the price of each T-shirts is $3, and the maximum number of T-shirts Joey can purchase is 15. Part 2 Which of the following consumption bundles lies below Joey's budget constraint? WHAT IS THE OPP COST
2 shorts and 4 shirts OPP COST 5 SHORTS
Joey goes to a supermarket to buy shorts (s) and T-shirts (t). His budget constraint is given by $15 s + $3 t = $ 45. Suppose Joey purchases only T-shirts. Given his budget constraint, the price of each T-shirts is ___, and the maximum number of T-shirts Joey can purchase is ___.
3,15
Your statistics professor reports that only seven students took the midterm exam. She reports all seven scores: 41, 49, 41, 37, 48, 43, and 13. The mean score is
38.86
Graph provided showing the graph increasing from left to right>>> The slope of the line is ____, which implies a _____ relationship.
4, positive
Your statistics professor reports that only seven students took the midterm exam. She reports all seven scores: 41, 49, 41, 37, 48, 43, and 13. The median score is
41
uppose your total benefit from eating slices of pizza (value in dollars) is 12x−x2, where x is the number of slices of pizza. Part 2 Pizza is sold by the slice and costs $2 per slice, and so the total cost of pizza is 2x. Part 3 Using optimization in levels, what is the optimal amount of pizza for you to eat? Part 4 Your net benefit is maximized at __ slices of pizza.
5
Suppose your New Year resolution is to get back in shape. How would you evaluate your options and choose an optimal one?
Do a cost-benefit analysis to compare the alternatives.
Which of the following do you provide as a positive question?
How much is the national debt
Which of the following best describes why consumers are price takers?
Individual transactions are too small to have much impact on the market price.
The following data gives the respective salaries of the two top managers, two middle managers, and two first-line managers at a particular firm: $250,000, $230,000, $90,000, $75,000, $55,000, $50,000. Which of the following statements is true in the case of an anecdotal argument?
It is appropriate when contradicting a blanket statement. It is appropriate when contradicting a blanket statement.
In which of the following examples, will the demand curve shift to the right?
Jason's demand for butter increases due to a decrease in the price of bread. This is the correct answer. Ron's demand for an inferior good increases due to a decrease in his income.
The following data gives the respective salaries of the two top managers, two middle managers, and two first-line managers at a particular firm: $250,000, $230,000, $90,000, $75,000, $55,000, $50,000. Which of the following can be categorized as an anecdotal argument?
John and Tina, the brightest students in the class, are very poor. Therefore, the conclusion is drawn that every bright student is poor. Alfred received a promotion when he became the father of a baby girl. Marshall lost his job when he became the father of a baby boy. Therefore, the conclusion is drawn that the gender of a newborn child is related to the fathers' job status.
Which of the following is not a characteristic of a market?
Markets are physical locations where trading occurs
Suppose you have been hired as a management consultant by a major oil company to help it optimally price gasoline at its service stations. Your client wants to know what will happen to gasoline demand if it increases gasoline prices by one cent higher than its nearest competitors. One of the members of your consulting team, Debbie, shares that one time in college she stopped buying gasoline from a service station that was one cent more expensive. Based on this story, should you conclude that demand will fall to zero if the client raises gas prices by one cent? ___ since this is an ____, which can lead to______ .
No, argument by anecdote, wrong conclusion
Determine whether the following statements better describe optimization using total value or optimization using marginal analysis. John is attempting to decide on a movie. (All movies have the same ticket price and play at the same time/location.) He determines that the new Batman movie is preferred to the new Spider-Man movie and that both the Batman and Spider-Man movies are preferred to the new Superman movie.
Optimization using marginal analysis, since he is calculating the change in net benefits between alternatives.
Determine whether the following statements better describe optimization using total value or optimization using marginal analysis. Nikki decided to jog 3 miles for exercise by reasoning that a 3-mile jog was better than either a 2-mile jog or a 4-mile jog. Part 5
Optimization using marginal analysis, since she is calculating the difference in net benefits between alternatives.
Determine whether the following statements better describe optimization using total value or optimization using marginal analysis. At a yard sale, Reagan calculated that she was willing to pay $200 for a queen bed that was being sold for $100 (generating net benefit of $100) and that she was willing to pay $220 for a king bed that was being sold for $300 (generating net benefit of $80).
Optimization using total value, since she is comparing the net benefits between alternatives.
What happens to the equilibrium price and quantity demanded after the supply curve of solar energy panels shifts?
Price decreases and quantity demanded increases.
Which of the following statements would not be considered a positive statement?
Production in the automobile is still low and should be subsidized by the gov
Which of the following examples do you provide as a normative question?
Should welfare be repealed
Which of the following is not a possible reason for a change in the demand curve of Zee decorative light fixture, from DD to DD'?
The change in the rate of sales tax
Your statistics professor reports that only seven students took the midterm exam. She reports all seven scores: 41, 49, 41, 37, 48, 43, and 13. Why is the median score higher than the mean score
The mean score is lower because the outlier pulls the mean downward but does not impact the median.
Richa wants to purchase 6 fluorescent light bulbs at a price of $30 per bulb. When the price of fluorescent light bulbs rises to $36, she purchases 5 bulbs. Which of the following could be the reason for Richa's change in the quantity purchased?
The opportunity cost of fluorescent light bulbs increases.
Suppose the quantity demanded of gold has gone up in a country and therefore, the demand curve shifts rightward. On the other hand, due to some restrictions imposed by the government on gold imports, the supply curve of gold in that country shifts leftward. In this case, which of the following statements always holds true?
The price of gold increases.
Which of the following is not one of the five major factors that shifts the demand curve when it changes?
The price of the good itself
Suppose you have been hired as a management consultant by a major oil company to help it optimally price gasoline at its service stations. Your client wants to know what will happen to gasoline demand if it increases gasoline prices by one cent higher than its nearest competitors. One of the members of your consulting team, Debbie, shares that one time in college she stopped buying gasoline from a service station that was one cent more expensive. Instead of relying on Debbie's college story to make a conclusion, you decide it is smarter to collect and analyze_____
a large amount of empirical data
The statement that the U.S. government should increase carbon taxes to $10/ton of carbon dioxide to reduce emissions that cause global warming is ___________.
a normative statement, since it describes what ought to be done and is therefore not possible to confirm with data.
In the given graph, the horizontal price line intersects the demand curve at a point labeled with a dot. At this intersection, where the quantity demanded of the product is 40 units, the buyers' willingness to pay is equal to the market price of the product. For a quantity below 40 units the buyers' willingness to pay is _____ the market price, so the buyers would ___ by purchasing more of the product.
above, gain
When making your decision about which activity to choose, you should consider the monetary cost _____ the opportunity cost of the activities. The goal is to choose the option that offers the greatest ___ benefit.
as well as, net
Anna Jones estimated the price elasticity of demand for new vehicles to be 0.84. If the price of cars increased by 14%, one would expect the quantity of new cars demanded to _____ by _____
decrease, 11.76
Suppose you had information on the sales of similar homes just east and just west of the boundary between two school districts. Also suppose schools on one side of the school boundary are better than the schools on the other side in terms of test scores. Part 2 You could estimate the average value that parents place on a one-point increase in test scores by ___________.
dividing the difference in the prices of similar homes between districts by the difference in test scores between districts.
The following data gives the respective salaries of the two top managers, two middle managers, and two first-line managers at a particular firm: $250,000, $230,000, $90,000, $75,000, $55,000, $50,000. We can conclude that the mean is _____ the median. Thus, the mean salary of all of the managers_____ by the salary of the top managers.
greater than, is impacted
For two goods that are substitutes, the cross-price elasticity of demand will be ____
negative
A demand curve has a ______slope due to the Law of Demand. The Law of Demand is based off of a consumer's willingness to pay _____ as marginal units are consumed.
negative, less
Michael has an economics final exam tomorrow morning and he needs to decide how many hours to study. The benefits column shows how many more points he expects to earn because of increased knowledge. The cost column shows how many points he will lose because of careless errors due to lack of sleep. (The "marginal" columns show the effect of each additional hour. These numbers are the differences of the "total" columns.) Using the marginal benefits and marginal costs analysis, if Michael studies for two hours, the outcome will be ____ because net benefit is _____
non-optimal, net benefit is not maximized
Making a prediction today about the world's population in twenty years based on current growth trends is an example of ______ economics. Advising the residents of a town to choose a toll road over a freeway extension due to a limited budget and high trucking usage is an example of ____ economics.
positive, normative
Graph provided showing the graph increasing from left to right>>> The two variables have a _____ relationship because they move ______.
positive, together
When one of the five major factors changes, causing an increase in demand, the demand curve shifts
rightward
Jonathan works at a convenience store and makes note of changes to sales after the price of liquid soap unexpectedly increases by 15 percent. He notices that the sale of shampoo decreases by 3 percent and the sale of lotion increases by 10 percent. The cross-price elasticity of demand between liquid soap and shampoo is -0.2. Based on the cross-price elasticity of demand, we can infer that liquid soap and lotion are ______
substitutes
The market supply curve is the ____of all the supply curves of potential producers and would be graphed to the ____of the individual curves.
sum, right
Holding all else constant, if the number of cell phone manufacturers suddenly decreased due to increased regulations, then
supply would shift leftwards, equilibrium price would increase, and equilibrium quantity would decrease.
All of the following statements about means and medians are true, except
the median is more skewed by extreme values.
Consumer surplus is __________.
the value or total benefits one receives from a good in excess of the price paid for it.
You say that positive questions ask _______ and normative questions ask ______. Part 2
what is or what will be, what ought to be
For an individual, consumer surplus is calculated as the difference between the ____to pay and the price actually paid for a good.
willingness
Suppose one of your friends offered the following argument: A rightward shift in demand will cause an increase in price. The increase in price will cause a rightward shift of the supply curve, which will lead to an offsetting decrease in price. Therefore, it is impossible to tell what effect an increase in demand will have on price. Do you agree with your friend?
No, the increase in price will not cause a shift of the supply curve.
