Econ 201 Practice Exam Questions and Correct Answer wers Latest Version 2023 100% Complete Guide A tax on gasoline encourages people to drive smaller, more fuel efficient cars. which principle of economics does this illustrate?
- the cost of something is what you give up to get it
- rational people think at the margin
- people fact trade offs
- People respond to incentives. - Correct Answer D
After a hurricane Walmart pledged to give $2 for every $1 a customer donated to the red cross while in their store. the relationship between the number of dollars donated and the numbers the Walmart donates is ___
- Positive and Stochastic
- Positive and Deterministic
- Negative and Stochastic
- Negative and Deterministic - Correct Answer B
by invoking the assumption of Ceteris Paribus, economists...
- consider the impact of all relevant factors
- isolate the impact of one single variable while holding all other variables constant
- hold all variables constant when analyzing a model.
- Exclude irrelevant detail when analyzing a model. - Correct Answer B
clay has $400 to spend and he plCorrect Answer to spend all of it on shoes (S) that cost $100 a pair and hats (H) that cost $25 each. which equation represents Paytons budget constraint for buying shoes and hats?
A.S = 4 - (1/4)H
B. S = 4 - (4)H
C. S = 4 + (1/4)H
- S = 100 - (16)H - Correct Answer A
David ricardo is credited with the coining the term "invisible Hand" while Adam smith gave us the law of Comparative advantage - Correct Answer False 1 / 2
economics is primarily the study of:
- how to make money in the stock market
- how to operate a business.
- how a society manages its scarce resources.
- the methods that governments might use to trCorrect Answer form a scarce good
into an economic good - Correct Answer C
Elliot is an economist who studies the marihuana market in Colorado. he studies how state laws related to packaging and advertising influence the decision of new marijuana consumers to start using marijuana. we would say that Elliot is a ____
- Marshallian economist
- Macroeconomist
- Microeconomist
- Legal economist. - Correct Answer C
For Cuba to effectively trCorrect Answer ition from a command oriented economy to a market oriented economy it will be important to___
- subsidize domestic producers to ensure a trade advantage
- Support businesses that are failing so they don't completely go out of business
- maintain government control fo the most fertile farm land to ensure that sufficient
amount of beCorrect Answer will be . produced for domestic consumption.
- allow Cuban businesses to keep profits and reinvest the profits back into the
business. - Correct Answer D
in a market economy there is no role for government - Correct Answer False
In the early 19th century the Russian government sent doctors to the southern Russian villages to provide assistance during a cholera epidemic. the villagers noticed whenever the doctors appeared, people died. therefore, many doctors were chases away. this reaction to the correlation between . doctors and deaths is most likely a problem of:
- Omitted variable bias
- reverse causality
- Government propaganda.
- Medical incompetence. - Correct Answer B
- / 2