ECO 202 Exam One NVCC | Questions with 100% Correct Answers | Verified | Latest Update
Question : What is the largest portion of US personal income
spent on?-Services -Tax payments -Durable goods -Dividends
Correct answer: Services
Question : The most common form of business organization
in the US is?-The sole proprietorship -The corporation -The partnership -None of the above
Correct answer: The sole propeietorship
Question : If steel workers accept a decrease in their hourly
wage, then one would expect...-A decrease in the quantity supplied of steel -The supply of steel to decline -A rightward shift of the steel supply curve -No change in the supply of steel
Correct answer: A rightward shift of the steel supply curve
Question : If an increase in consumer income leads to a
decline in the demand for hamburger -Then hamburger is considered a normal good -Then the supply of hamburger must fall -Then hamburger is an interior good -Then hamburger is a neutral good
Correct answer: Then hamburger is an interior good
Question : A decline in the supply of coffee will result in
-A decline in demand for tea, a substitute -A rise in price and a fall in quantity demanded for coffee
-A rise in price and a rise in quantity demanded of coffee -A fall in price and a fall in quantity demanded of coffee
Correct answer: A rise in price and a fall in quantity
demanded for coffee
Question : An analysis of the market for Good X shows that
the price of a complement, Good Y, is declining. At the same time, there is a technological advance that increases the supply of Good X. Which of the following much be true for Good X?-Equilibrium price will rise, and equilibrium quantity will decline -Equilibrium price will fall, and equilibrium quantity will decline -Equilibrium PRICE will rise, and the change in equilibrium quantity cannot be determined. Equilibrium quantity may rise, fall, or stay the same -Equilibrium QUANTITY will rise, and the change in equilibrium price cannot be determined. Equilibrium price may rise, fall, or stay the same.
Correct answer: Equilibrium QUANTITY will rise, and the
change in equilibrium price cannot be determined.Equilibrium price may rise, fall, or stay the sane
Question : All but which one of the following could shift the
demand curve?-An increase in the size of the group buying that good -A shift of the supply curve -A change in the price of substitutes -An increase in the size of the group buying that good -A successful advertising campaign which convinces people that they want more of this good
Correct answer: A shift of the supply curve
Question : At the equilibrium price of $3.50 a bushel, with no
price controls, 10,000 bushels of oat are sold. If the government imposed a price flow of $4.50, we would expect -Nothing to happen, since the price floor would be above the equilibrium price.-Farmers to continue to supply 10,000 bushels