Domietta University
Faculty Of Commerce
English Section Program
Final - Term Exam (2020/-2021)
Course: Economics
------------------------------------------------------------------------------------------------------Answer the Following Questions:
Q1- Make False Or True
1-Price and quantity demanded are positively related.
2- Price and quantity supplied are positively related.
3 - Equilibrium price will go up if supply increases
4 - A shift of the supply curve to the right is an increase in supply.
5- Society can reach a point beyond its current production possibilities curve if economic
growth occurs.
6- Any point on the production possibilities curve represents full employment.
7- Production possibilities curves never shift outward.
8- Economic growth is associated with an outward shift of the production
possibilities curve.
9- Public goods are generally provided by the government.
10- Spillover costs or benefits are examples of market failures.
11- Scarcity means that we have limited resources relative to our unlimited
wants.
12- Most economists believe that the government should not become
involved in the case of a market failure.
13- An excise tax on cigarettes will cause an increase in the price of
.
.
cigarettes.
14- Opportunity cost is defined as the best alternative foregone.
15- Unless externalities or other market failures are present, the
competitive market place is generally considered to be equitable.
16- Pure capitalism is characterized by private ownership and government
economic decision making.
17- Liberals (economic left) generally value equity.
18- “Increasing opportunity costs” means that as more of one good is
produced, we must give up increasingly smaller amounts of the other
good.
19- Increasing opportunity costs result from the fact that resources are
generally suited equally well to producing both goods under consideration.
Q2
Multiple-Choice Questions
1- The law of demand says that:
a.
b.
c.
d.
.
price and quantity demanded are positively related.
price and quantity demanded are negatively related.
price and quantity supplied are positively related.
price and quantity supplied are negatively related.
2- Fill in the blanks to complete the following statement. Price and quantity
demanded are _____ related, and price and quantity supplied are _____ related.
a. negatively, positively.
b. positively, negatively.
c. negatively, not.
D-
not, negatively.
.
3. Opportunity cost refers to:
a. the dollars spent on a product.
b. the best of the alternatives forgone in order to produce or consume something.
c. the resources used to make something.
d. the money spent by a business to produce something.
The next three questions refer to the following graph.
4. Equilibrium price and quantity are:
d. $2, 150
c. $4, 150
b. $3, 120
a. $4, 120
5- At $2, there would be a _____ in this market.
a.
b.
c.
d.
surplus of 60.
surplus of 30.
shortage of 60.
shortage of 30.
6. At what price would there be a surplus of 60?
d. cannot say from this data.
c. $4
b. $3
a. $2
The next three questions refer to the following production possibilities curve for medical care
and education.
7. If the economy is at point F, it represents:
a- unemployment and/or inefficiency.
B- overemployment. .
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
8. Point G represents:
A- unemployment and/or inefficiency.
b. overemployment.
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
9- If the economy is at point D, the opportunity cost of 10 additional units of
education will be:
a. 20 units of medical care forgone.
b. 40 units of medical care forgone.
c. $30,000.
D- $90,000.
10. When the demand curve shifts to the right, we say that:
a. price has decreased.
b. equilibrium quantity has decreased.
c. demand has decreased.
d. demand has increased.
11. When demand increases in a graph of demand and supply:
a. equilibrium price will increase, but equilibrium quantity will decrease.
b. equilibrium price will decrease, but equilibrium quantity will increase.
c. both equilibrium price and quantity will decrease.
d. both equilibrium price and quantity will increase.
12. When supply increases in a graph of demand and supply:
a- equilibrium price will increase, but equilibrium quantity will decrease.
b-equilibrium price will decrease, but equilibrium quantity will
increase.
C- both equilibrium price and quantity will decrease.
d- both equilibrium price and quantity will increase.
13 Police protection and national defense are examples of:
a- complementary goods.
b- public goods and services.
c- substitute goods. c.
.
d. inferior goods.
14-When we say “all other things equal” with regard to demand and supply, we
mean that:
a- only one curve at a time can shift.
b-factors other than price that could affect quantity demanded or
supplied do not change.
.
C- the market is at equilibrium.
D- there is neither a surplus nor a shortage in the market.
15-The following four questions refer to the production possibilities schedule below, as
discussed in the appendix.
Food
A
Housing
140
10
20
D
a.
b.
c.
d.
120
90
50
40
Alternative
0
B
C
30
0
E
What is the opportunity cost of the first 10 units of food? 15.
$200,000.
20 units of housing forgone.
50 units of medical care forgone.
We cannot say because we do not know the price of either housing or food.
16. What is the opportunity cost of the last 10 units of food?
a
b.
a.
b.
20 units of housing forgone.
50 units of housing forgone.
50 units of food.
We cannot say because we do not know the price of either housing or food.
17. The essential point of this production possibilities schedule is that:
a. with our limited resources, we cannot have unlimited amounts of both
housing and food.
b. we should provide our citizens with free housing and free food.
c. we could provide our society free housing, but not free food.
d. we do not really have to make a choice between housing and food, because we have
plenty of resources to provide as much as we wish of both.
18. This production possibility schedule displays
a. increasing opportunity costs.
b. constant opportunity costs.
c. no opportunity costs.
d. perfect opportunity costs.
Which of the following does not represent a market failure? 19.
a.
b.
c.
d.
spillovers.
market power.
public goods and services.
technology change.
20. The ability to influence the market price of a product is:
a. competitive pricing.
b. microeconomic pricing.
c. market power.
d. economic power.
21. Which of the following is a microeconomic topic?
a. total income.
b. total output.
c. distribution of income.
d. gross domestic product.
22. The term ‘public’, as used in this course, refers to:
a. consumers.
b. businesses.
c. workers.
d. government.
23. Every point on the production possibilities curve displays:
a. full employment of labor.
b. full employment of resources other than labor.
c. the current time period.
d. all of the above.
Domietta University
Faculty Of Commerce
English Section Program
Final - Term Exam (2020/-2021)
Course: Economics
------------------------------------------------------------------------------------------------------Answer the Following Questions:
Q1- Make False Or True
1- Any point on the production possibilities curve represents full employment.
2- Production possibilities curves never shift outward.
3- Economic growth is associated with an outward shift of the production
possibilities curve.
4- Public goods are generally provided by the government.
5- Spillover costs or benefits are examples of market failures.
Q2
Multiple-Choice Questions
1- The law of demand says that:
a.
b.
c.
d.
.
price and quantity demanded are positively related.
price and quantity demanded are negatively related.
price and quantity supplied are positively related.
price and quantity supplied are negatively related.
2- Fill in the blanks to complete the following statement. Price and quantity
demanded are _____ related, and price and quantity supplied are _____ related.
a. negatively, positively.
b. positively, negatively.
c. negatively, not.
D-
not, negatively.
.
3. Opportunity cost refers to:
a. the dollars spent on a product.
b. the best of the alternatives forgone in order to produce or consume something.
c. the resources used to make something.
d. the money spent by a business to produce something.
The next three questions refer to the following graph.
4. Equilibrium price and quantity are:
d. $2, 150
c. $4, 150
b. $3, 120
a. $4, 120
b. $3
a. $2
5- At $2, there would be a _____ in this market.
a.
b.
c.
d.
surplus of 60.
surplus of 30.
shortage of 60.
shortage of 30.
6. At what price would there be a surplus of 60?
d. cannot say from this data.
c. $4
The next three questions refer to the following production possibilities curve for medical care
and education.
7. If the economy is at point F, it represents:
a- unemployment and/or inefficiency.
B- overemployment. .
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
8. Point G represents:
A- unemployment and/or inefficiency.
b. overemployment.
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
9- If the economy is at point D, the opportunity cost of 10 additional units of
education will be:
a. 20 units of medical care forgone.
b. 40 units of medical care forgone.
c. $30,000.
D- $90,000.
10. When the demand curve shifts to the right, we say that:
a. price has decreased.
b. equilibrium quantity has decreased.
c. demand has decreased.
d. demand has increased.
11. When demand increases in a graph of demand and supply:
a. equilibrium price will increase, but equilibrium quantity will decrease.
b. equilibrium price will decrease, but equilibrium quantity will increase.
c. both equilibrium price and quantity will decrease.
d. both equilibrium price and quantity will increase.
12. When supply increases in a graph of demand and supply:
a- equilibrium price will increase, but equilibrium quantity will decrease.
b-equilibrium price will decrease, but equilibrium quantity will
increase.
C- both equilibrium price and quantity will decrease.
d- both equilibrium price and quantity will increase.
13 Police protection and national defense are examples of:
a- complementary goods.
b- public goods and services.
c- substitute goods. c.
.
d. inferior goods.
14-When we say “all other things equal” with regard to demand and supply, we
mean that:
a- only one curve at a time can shift.
b-factors other than price that could affect quantity demanded or
supplied do not change.
.
C- the market is at equilibrium.
D- there is neither a surplus nor a shortage in the market.
15-The following four questions refer to the production possibilities schedule below, as
discussed in the appendix.
Food
A
Housing
140
10
20
D
120
90
50
40
Alternative
0
B
C
30
0
E
What is the opportunity cost of the first 10 units of food? .
e. $200,000.
f. 20 units of housing forgone.
g. 50 units of medical care forgone.
h. We cannot say because we do not know the price of either housing or food.
16. What is the opportunity cost of the last 10 units of food?
a
b.
c.
d.
20 units of housing forgone.
50 units of housing forgone.
50 units of food.
We cannot say because we do not know the price of either housing or food.
17. The essential point of this production possibilities schedule is that:
b. with our limited resources, we cannot have unlimited amounts of both
housing and food.
e. we should provide our citizens with free housing and free food.
f. we could provide our society free housing, but not free food.
g. we do not really have to make a choice between housing and food, because we have
plenty of resources to provide as much as we wish of both.
18. This production possibility schedule displays
a. increasing opportunity costs.
b. constant opportunity costs.
c. no opportunity costs.
d. perfect opportunity costs.
Which of the following does not represent a market failure? 19.
a.
b.
c.
d.
spillovers.
market power.
public goods and services.
technology change.
21. The ability to influence the market price of a product is:
a. competitive pricing.
b. microeconomic pricing.
c. market power.
d. economic power.
22. Which of the following is a microeconomic topic?
c. total income.
d. total output.
c. distribution of income.
d. gross domestic product.
22. The term ‘public’, as used in this course, refers to:
e. consumers.
f. businesses.
g. workers.
h. government.
24. Every point on the production possibilities curve displays:
e. full employment of labor.
f. full employment of resources other than labor.
g. the current time period.
h. all of the above.
Domietta University
Faculty Of Commerce
English Section Program
Final - Term Exam (2020/-2021)
Course: Economics
------------------------------------------------------------------------------------------------------Answer the Following Questions:
Q1- Make False Or True
1- Any point on the production possibilities curve represents full employment.
2- Production possibilities curves never shift outward.
3- Economic growth is associated with an outward shift of the production
possibilities curve.
4- Public goods are generally provided by the government.
5- Spillover costs or benefits are examples of market failures.
Q2
Multiple-Choice Questions
1- The law of demand says that:
a.
b.
c.
d.
.
price and quantity demanded are positively related.
price and quantity demanded are negatively related.
price and quantity supplied are positively related.
price and quantity supplied are negatively related.
2- Fill in the blanks to complete the following statement. Price and quantity
demanded are _____ related, and price and quantity supplied are _____ related.
a. negatively, positively.
b. positively, negatively.
c. negatively, not.
D-
not, negatively.
.
3. Opportunity cost refers to:
a. the dollars spent on a product.
b. the best of the alternatives forgone in order to produce or consume something.
c. the resources used to make something.
d. the money spent by a business to produce something.
The next three questions refer to the following graph.
4. Equilibrium price and quantity are:
d. $2, 150
c. $4, 150
b. $3, 120
a. $4, 120
b. $3
a. $2
5- At $2, there would be a _____ in this market.
a.
b.
c.
d.
surplus of 60.
surplus of 30.
shortage of 60.
shortage of 30.
6. At what price would there be a surplus of 60?
d. cannot say from this data.
c. $4
The next three questions refer to the following production possibilities curve for medical care
and education.
7. If the economy is at point F, it represents:
a- unemployment and/or inefficiency.
B- overemployment. .
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
8. Point G represents:
A- unemployment and/or inefficiency.
b. overemployment.
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
9- If the economy is at point D, the opportunity cost of 10 additional units of
education will be:
a. 20 units of medical care forgone.
b. 40 units of medical care forgone.
c. $30,000.
D- $90,000.
10. When the demand curve shifts to the right, we say that:
a. price has decreased.
b. equilibrium quantity has decreased.
c. demand has decreased.
d. demand has increased.
11. When demand increases in a graph of demand and supply:
a. equilibrium price will increase, but equilibrium quantity will decrease.
b. equilibrium price will decrease, but equilibrium quantity will increase.
c. both equilibrium price and quantity will decrease.
d. both equilibrium price and quantity will increase.
12. When supply increases in a graph of demand and supply:
a- equilibrium price will increase, but equilibrium quantity will decrease.
b-equilibrium price will decrease, but equilibrium quantity will
increase.
C- both equilibrium price and quantity will decrease.
d- both equilibrium price and quantity will increase.
13 Police protection and national defense are examples of:
a- complementary goods.
b- public goods and services.
c- substitute goods. c.
.
d. inferior goods.
14-When we say “all other things equal” with regard to demand and supply, we
mean that:
a- only one curve at a time can shift.
b-factors other than price that could affect quantity demanded or
supplied do not change.
.
C- the market is at equilibrium.
D- there is neither a surplus nor a shortage in the market.
15-The following four questions refer to the production possibilities schedule below, as
discussed in the appendix.
Food
A
Housing
140
10
20
D
0
120
90
50
40
Alternative
B
C
30
0
E
What is the opportunity cost of the first 10 units of food?
i. $200,000.
j. 20 units of housing forgone.
k. 50 units of medical care forgone.
l. We cannot say because we do not know the price of either housing or food.
16. What is the opportunity cost of the last 10 units of food?
a
b.
e.
f.
20 units of housing forgone.
50 units of housing forgone.
50 units of food.
We cannot say because we do not know the price of either housing or food.
17. The essential point of this production possibilities schedule is that:
c. with our limited resources, we cannot have unlimited amounts of both
housing and food.
h. we should provide our citizens with free housing and free food.
i.
j.
we could provide our society free housing, but not free food.
we do not really have to make a choice between housing and food, because we have
plenty of resources to provide as much as we wish of both.
18. This production possibility schedule displays
a. increasing opportunity costs.
b. constant opportunity costs.
c. no opportunity costs.
d. perfect opportunity costs.
Which of the following does not represent a market failure? 19.
a.
b.
c.
d.
spillovers.
market power.
public goods and services.
technology change.
22. The ability to influence the market price of a product is:
a. competitive pricing.
b. microeconomic pricing.
c. market power.
d. economic power.
23. Which of the following is a microeconomic topic?
e. total income.
f. total output.
c. distribution of income.
d. gross domestic product.
22. The term ‘public’, as used in this course, refers to:
i. consumers.
j. businesses.
k. workers.
l. government.
25. Every point on the production possibilities curve displays:
i. full employment of labor.
j. full employment of resources other than labor.
k. the current time period.
l. all of the above.
Domietta University
Faculty Of Commerce
English Section Program
Final - Term Exam (2020/-2021)
Course: Economics
------------------------------------------------------------------------------------------------------Answer the Following Questions:
Q1- Make False Or True
1- Any point on the production possibilities curve represents full employment.
2- Production possibilities curves never shift outward.
3- Economic growth is associated with an outward shift of the production
possibilities curve.
4- Public goods are generally provided by the government.
5- Spillover costs or benefits are examples of market failures.
Q2
Multiple-Choice Questions
1- The law of demand says that:
a.
b.
c.
d.
.
price and quantity demanded are positively related.
price and quantity demanded are negatively related.
price and quantity supplied are positively related.
price and quantity supplied are negatively related.
2- Fill in the blanks to complete the following statement. Price and quantity
demanded are _____ related, and price and quantity supplied are _____ related.
a. negatively, positively.
b. positively, negatively.
c. negatively, not.
D-
not, negatively.
.
3. Opportunity cost refers to:
a. the dollars spent on a product.
b. the best of the alternatives forgone in order to produce or consume something.
c. the resources used to make something.
d. the money spent by a business to produce something.
The next three questions refer to the following graph.
4. Equilibrium price and quantity are:
d. $2, 150
c. $4, 150
b. $3, 120
a. $4, 120
b. $3
a. $2
5- At $2, there would be a _____ in this market.
a.
b.
c.
d.
surplus of 60.
surplus of 30.
shortage of 60.
shortage of 30.
6. At what price would there be a surplus of 60?
d. cannot say from this data.
c. $4
The next three questions refer to the following production possibilities curve for medical care
and education.
7. If the economy is at point F, it represents:
a- unemployment and/or inefficiency.
B- overemployment. .
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
8. Point G represents:
A- unemployment and/or inefficiency.
b. overemployment.
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
9- If the economy is at point D, the opportunity cost of 10 additional units of
education will be:
a. 20 units of medical care forgone.
b. 40 units of medical care forgone.
c. $30,000.
D- $90,000.
10. When the demand curve shifts to the right, we say that:
a. price has decreased.
b. equilibrium quantity has decreased.
c. demand has decreased.
d. demand has increased.
11. When demand increases in a graph of demand and supply:
a. equilibrium price will increase, but equilibrium quantity will decrease.
b. equilibrium price will decrease, but equilibrium quantity will increase.
c. both equilibrium price and quantity will decrease.
d. both equilibrium price and quantity will increase.
12. When supply increases in a graph of demand and supply:
a- equilibrium price will increase, but equilibrium quantity will decrease.
b-equilibrium price will decrease, but equilibrium quantity will
increase.
C- both equilibrium price and quantity will decrease.
d- both equilibrium price and quantity will increase.
13 Police protection and national defense are examples of:
a- complementary goods.
b- public goods and services.
c- substitute goods. c.
.
d. inferior goods.
14-When we say “all other things equal” with regard to demand and supply, we
mean that:
a- only one curve at a time can shift.
b-factors other than price that could affect quantity demanded or
supplied do not change.
.
C- the market is at equilibrium.
D- there is neither a surplus nor a shortage in the market.
15-The following four questions refer to the production possibilities schedule below, as
discussed in the appendix.
Food
A
Housing
140
10
20
D
0
120
90
50
40
Alternative
B
C
30
0
E
What is the opportunity cost of the first 10 units of food?
m. $200,000.
n. 20 units of housing forgone.
o. 50 units of medical care forgone.
p. We cannot say because we do not know the price of either housing or food.
16. What is the opportunity cost of the last 10 units of food?
a
b.
g.
h.
20 units of housing forgone.
50 units of housing forgone.
50 units of food.
We cannot say because we do not know the price of either housing or food.
17. The essential point of this production possibilities schedule is that:
d. with our limited resources, we cannot have unlimited amounts of both
housing and food.
k. we should provide our citizens with free housing and free food.
l. we could provide our society free housing, but not free food.
m. we do not really have to make a choice between housing and food, because we have
plenty of resources to provide as much as we wish of both.
18. This production possibility schedule displays
a. increasing opportunity costs.
b. constant opportunity costs.
c. no opportunity costs.
d. perfect opportunity costs.
Which of the following does not represent a market failure? 19.
a.
b.
c.
d.
spillovers.
market power.
public goods and services.
technology change.
23. The ability to influence the market price of a product is:
a. competitive pricing.
b. microeconomic pricing.
c. market power.
d. economic power.
24. Which of the following is a microeconomic topic?
g. total income.
h. total output.
c. distribution of income.
d. gross domestic product.
22. The term ‘public’, as used in this course, refers to:
m. consumers.
n. businesses.
o. workers.
p. government.
26. Every point on the production possibilities curve displays:
m. full employment of labor.
n. full employment of resources other than labor.
o. the current time period.
p. all of the above.
Domietta University
Faculty Of Commerce
English Section Program
Final - Term Exam (2020/-2021)
Course: Economics
------------------------------------------------------------------------------------------------------Answer the Following Questions:
Q1- Make False Or True
1- Any point on the production possibilities curve represents full employment.
2- Production possibilities curves never shift outward.
3- Economic growth is associated with an outward shift of the production
possibilities curve.
4- Public goods are generally provided by the government.
5- Spillover costs or benefits are examples of market failures.
Q2
Multiple-Choice Questions
1- The law of demand says that:
a.
b.
c.
d.
.
price and quantity demanded are positively related.
price and quantity demanded are negatively related.
price and quantity supplied are positively related.
price and quantity supplied are negatively related.
2- Fill in the blanks to complete the following statement. Price and quantity
demanded are _____ related, and price and quantity supplied are _____ related.
a. negatively, positively.
b. positively, negatively.
c. negatively, not.
D-
not, negatively.
.
3. Opportunity cost refers to:
a. the dollars spent on a product.
b. the best of the alternatives forgone in order to produce or consume something.
c. the resources used to make something.
d. the money spent by a business to produce something.
The next three questions refer to the following graph.
4. Equilibrium price and quantity are:
d. $2, 150
c. $4, 150
b. $3, 120
a. $4, 120
b. $3
a. $2
5- At $2, there would be a _____ in this market.
a.
b.
c.
d.
surplus of 60.
surplus of 30.
shortage of 60.
shortage of 30.
6. At what price would there be a surplus of 60?
d. cannot say from this data.
c. $4
The next three questions refer to the following production possibilities curve for medical care
and education.
7. If the economy is at point F, it represents:
a- unemployment and/or inefficiency.
B- overemployment. .
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
8. Point G represents:
A- unemployment and/or inefficiency.
b. overemployment.
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
9- If the economy is at point D, the opportunity cost of 10 additional units of
education will be:
a. 20 units of medical care forgone.
b. 40 units of medical care forgone.
c. $30,000.
D- $90,000.
10. When the demand curve shifts to the right, we say that:
a. price has decreased.
b. equilibrium quantity has decreased.
c. demand has decreased.
d. demand has increased.
11. When demand increases in a graph of demand and supply:
a. equilibrium price will increase, but equilibrium quantity will decrease.
b. equilibrium price will decrease, but equilibrium quantity will increase.
c. both equilibrium price and quantity will decrease.
d. both equilibrium price and quantity will increase.
12. When supply increases in a graph of demand and supply:
a- equilibrium price will increase, but equilibrium quantity will decrease.
b-equilibrium price will decrease, but equilibrium quantity will
increase.
C- both equilibrium price and quantity will decrease.
d- both equilibrium price and quantity will increase.
13 Police protection and national defense are examples of:
a- complementary goods.
b- public goods and services.
c- substitute goods. c.
.
d. inferior goods.
14-When we say “all other things equal” with regard to demand and supply, we
mean that:
a- only one curve at a time can shift.
b-factors other than price that could affect quantity demanded or
supplied do not change.
.
C- the market is at equilibrium.
D- there is neither a surplus nor a shortage in the market.
15-The following four questions refer to the production possibilities schedule below, as
discussed in the appendix.
Food
A
Housing
140
10
20
D
q.
r.
s.
t.
120
90
50
40
Alternative
0
B
C
30
0
E
What is the opportunity cost of the first 10 units of food? 15.
$200,000.
20 units of housing forgone.
50 units of medical care forgone.
We cannot say because we do not know the price of either housing or food.
16. What is the opportunity cost of the last 10 units of food?
a
b.
i.
j.
20 units of housing forgone.
50 units of housing forgone.
50 units of food.
We cannot say because we do not know the price of either housing or food.
17. The essential point of this production possibilities schedule is that:
e. with our limited resources, we cannot have unlimited amounts of both
housing and food.
n. we should provide our citizens with free housing and free food.
o. we could provide our society free housing, but not free food.
p. we do not really have to make a choice between housing and food, because we have
plenty of resources to provide as much as we wish of both.
18. This production possibility schedule displays
a. increasing opportunity costs.
b. constant opportunity costs.
c. no opportunity costs.
d. perfect opportunity costs.
Which of the following does not represent a market failure? 19.
a.
b.
c.
d.
spillovers.
market power.
public goods and services.
technology change.
24. The ability to influence the market price of a product is:
a. competitive pricing.
b. microeconomic pricing.
c. market power.
d. economic power.
25. Which of the following is a microeconomic topic?
i. total income.
j. total output.
c. distribution of income.
d. gross domestic product.
22. The term ‘public’, as used in this course, refers to:
q. consumers.
r. businesses.
s. workers.
t. government.
27. Every point on the production possibilities curve displays:
q. full employment of labor.
r. full employment of resources other than labor.
s. the current time period.
t. all of the above.
Domietta University
Final - Term Exam (2020/-2021)
Faculty Of Commerce
English Section Program
Course: Economics
------------------------------------------------------------------------------------------------------Answer the Following Questions:
Q1- Make False Or True
1- Any point on the production possibilities curve represents full employment.
2- Production possibilities curves never shift outward.
3- Economic growth is associated with an outward shift of the production
possibilities curve.
4- Public goods are generally provided by the government.
5- Spillover costs or benefits are examples of market failures.
Q2
Multiple-Choice Questions
1- The law of demand says that:
a.
b.
c.
d.
.
price and quantity demanded are positively related.
price and quantity demanded are negatively related.
price and quantity supplied are positively related.
price and quantity supplied are negatively related.
2- Fill in the blanks to complete the following statement. Price and quantity
demanded are _____ related, and price and quantity supplied are _____ related.
a. negatively, positively.
b. positively, negatively.
c. negatively, not.
D-
not, negatively.
.
3. Opportunity cost refers to:
a. the dollars spent on a product.
b. the best of the alternatives forgone in order to produce or consume something.
c. the resources used to make something.
d. the money spent by a business to produce something.
The next three questions refer to the following graph.
4. Equilibrium price and quantity are:
d. $2, 150
c. $4, 150
b. $3, 120
a. $4, 120
b. $3
a. $2
5- At $2, there would be a _____ in this market.
a.
b.
c.
d.
surplus of 60.
surplus of 30.
shortage of 60.
shortage of 30.
6. At what price would there be a surplus of 60?
d. cannot say from this data.
c. $4
The next three questions refer to the following production possibilities curve for medical care
and education.
7. If the economy is at point F, it represents:
a- unemployment and/or inefficiency.
B- overemployment. .
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
8. Point G represents:
A- unemployment and/or inefficiency.
b. overemployment.
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
9- If the economy is at point D, the opportunity cost of 10 additional units of
education will be:
a. 20 units of medical care forgone.
b. 40 units of medical care forgone.
c. $30,000.
D- $90,000.
10. When the demand curve shifts to the right, we say that:
a. price has decreased.
b. equilibrium quantity has decreased.
c. demand has decreased.
d. demand has increased.
11. When demand increases in a graph of demand and supply:
a. equilibrium price will increase, but equilibrium quantity will decrease.
b. equilibrium price will decrease, but equilibrium quantity will increase.
c. both equilibrium price and quantity will decrease.
d. both equilibrium price and quantity will increase.
12. When supply increases in a graph of demand and supply:
a- equilibrium price will increase, but equilibrium quantity will decrease.
b-equilibrium price will decrease, but equilibrium quantity will
increase.
C- both equilibrium price and quantity will decrease.
d- both equilibrium price and quantity will increase.
13 Police protection and national defense are examples of:
a- complementary goods.
b- public goods and services.
c- substitute goods. c.
.
d. inferior goods.
14-When we say “all other things equal” with regard to demand and supply, we
mean that:
a- only one curve at a time can shift.
b-factors other than price that could affect quantity demanded or
supplied do not change.
.
C- the market is at equilibrium.
D- there is neither a surplus nor a shortage in the market.
15-The following four questions refer to the production possibilities schedule below, as
discussed in the appendix.
Food
A
Housing
140
10
20
D
120
90
50
40
Alternative
0
B
C
30
0
E
What is the opportunity cost of the first 10 units of food? .
u. $200,000.
v. 20 units of housing forgone.
w. 50 units of medical care forgone.
x. We cannot say because we do not know the price of either housing or food.
16. What is the opportunity cost of the last 10 units of food?
a
b.
k.
l.
20 units of housing forgone.
50 units of housing forgone.
50 units of food.
We cannot say because we do not know the price of either housing or food.
17. The essential point of this production possibilities schedule is that:
f. with our limited resources, we cannot have unlimited amounts of both
housing and food.
q. we should provide our citizens with free housing and free food.
r.
s.
we could provide our society free housing, but not free food.
we do not really have to make a choice between housing and food, because we have
plenty of resources to provide as much as we wish of both.
18. This production possibility schedule displays
a. increasing opportunity costs.
b. constant opportunity costs.
c. no opportunity costs.
d. perfect opportunity costs.
Which of the following does not represent a market failure? 19.
a.
b.
c.
d.
spillovers.
market power.
public goods and services.
technology change.
25. The ability to influence the market price of a product is:
a. competitive pricing.
b. microeconomic pricing.
c. market power.
d. economic power.
26. Which of the following is a microeconomic topic?
k. total income.
l. total output.
c. distribution of income.
d. gross domestic product.
22. The term ‘public’, as used in this course, refers to:
u. consumers.
v. businesses.
w. workers.
x. government.
28. Every point on the production possibilities curve displays:
u. full employment of labor.
v. full employment of resources other than labor.
w. the current time period.
x. all of the above.
Domietta University
Faculty Of Commerce
English Section Program
Final - Term Exam (2020/-2021)
Course: Economics
------------------------------------------------------------------------------------------------------Answer the Following Questions:
Q1- Make False Or True
1- Any point on the production possibilities curve represents full employment.
2- Production possibilities curves never shift outward.
3- Economic growth is associated with an outward shift of the production
possibilities curve.
4- Public goods are generally provided by the government.
5- Spillover costs or benefits are examples of market failures.
Q2
Multiple-Choice Questions
1- The law of demand says that:
a.
b.
c.
d.
.
price and quantity demanded are positively related.
price and quantity demanded are negatively related.
price and quantity supplied are positively related.
price and quantity supplied are negatively related.
2- Fill in the blanks to complete the following statement. Price and quantity
demanded are _____ related, and price and quantity supplied are _____ related.
a. negatively, positively.
b. positively, negatively.
c. negatively, not.
D-
not, negatively.
.
3. Opportunity cost refers to:
a. the dollars spent on a product.
b. the best of the alternatives forgone in order to produce or consume something.
c. the resources used to make something.
d. the money spent by a business to produce something.
The next three questions refer to the following graph.
4. Equilibrium price and quantity are:
d. $2, 150
c. $4, 150
b. $3, 120
a. $4, 120
b. $3
a. $2
5- At $2, there would be a _____ in this market.
a.
b.
c.
d.
surplus of 60.
surplus of 30.
shortage of 60.
shortage of 30.
6. At what price would there be a surplus of 60?
d. cannot say from this data.
c. $4
The next three questions refer to the following production possibilities curve for medical care
and education.
7. If the economy is at point F, it represents:
a- unemployment and/or inefficiency.
B- overemployment. .
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
8. Point G represents:
A- unemployment and/or inefficiency.
b. overemployment.
c. an impossible point to reach with available resources.
d. an optimum use of society’s resources.
9- If the economy is at point D, the opportunity cost of 10 additional units of
education will be:
a. 20 units of medical care forgone.
b. 40 units of medical care forgone.
c. $30,000.
D- $90,000.
10. When the demand curve shifts to the right, we say that:
a. price has decreased.
b. equilibrium quantity has decreased.
c. demand has decreased.
d. demand has increased.
11. When demand increases in a graph of demand and supply:
a. equilibrium price will increase, but equilibrium quantity will decrease.
b. equilibrium price will decrease, but equilibrium quantity will increase.
c. both equilibrium price and quantity will decrease.
d. both equilibrium price and quantity will increase.
12. When supply increases in a graph of demand and supply:
a- equilibrium price will increase, but equilibrium quantity will decrease.
b-equilibrium price will decrease, but equilibrium quantity will
increase.
C- both equilibrium price and quantity will decrease.
d- both equilibrium price and quantity will increase.
13 Police protection and national defense are examples of:
a- complementary goods.
b- public goods and services.
c- substitute goods. c.
.
d. inferior goods.
14-When we say “all other things equal” with regard to demand and supply, we
mean that:
a- only one curve at a time can shift.
b-factors other than price that could affect quantity demanded or
supplied do not change.
.
C- the market is at equilibrium.
D- there is neither a surplus nor a shortage in the market.
15-The following four questions refer to the production possibilities schedule below, as
discussed in the appendix.
Food
A
Housing
140
10
20
D
0
120
90
50
40
Alternative
B
C
30
0
E
What is the opportunity cost of the first 10 units of food?
y. $200,000.
z. 20 units of housing forgone.
aa. 50 units of medical care forgone.
bb. We cannot say because we do not know the price of either housing or food.
16. What is the opportunity cost of the last 10 units of food?
a
b.
m.
n.
20 units of housing forgone.
50 units of housing forgone.
50 units of food.
We cannot say because we do not know the price of either housing or food.
17. The essential point of this production possibilities schedule is that:
g. with our limited resources, we cannot have unlimited amounts of both
housing and food.
t. we should provide our citizens with free housing and free food.
u. we could provide our society free housing, but not free food.
v. we do not really have to make a choice between housing and food, because we have
plenty of resources to provide as much as we wish of both.
18. This production possibility schedule displays
a. increasing opportunity costs.
b. constant opportunity costs.
c. no opportunity costs.
d. perfect opportunity costs.
Which of the following does not represent a market failure? 19.
a.
b.
c.
d.
spillovers.
market power.
public goods and services.
technology change.
19-The ability to influence the market price of a product is:
a. competitive pricing.
b. microeconomic pricing.
c. market power.
d. economic power.