ECON312N All Quizzes (September 2019)

ECON312N Principles of Economics

Week 2 Quiz

Question 1

In the above figure, the shift in the demand curve from D to D2 can be the result of

an increase in the price of a sub sandwich, a substitute for pizza.

an increase in income if pizza is a normal good.

a change in quantity demanded.

an increase in the price of soda, a complement to pizza.

a decrease in the supply of pizza that raises the price of pizza.

Question 2

The question “Should economics majors or sociology majors earn more after they graduate?” is an example of a ________ question.

for whom

what

how

why

where

Question 3

The United States can use all its resources to produce 250 DVDs or 500 shoes. China can use all of its resources to produce 30 DVDs or 300 shoes. The opportunity cost of producing a DVD in the United States is

1/2 of a shoe.

500 shoes.

1 DVD.

2 shoes.

20 shoes.

Question 4

What is an inferior good?

a product that is a substitute for another, better good

a product of low quality that we do not want to purchase

a product for which demand increases when income decreases, and demand decreases when income increases

a product for which demand increases when income increases, and demand decreases when income decreases

a product that is complementary

Question 5

Researchers have found a hybrid of corn that is cheaper to grow. This technological breakthrough

Both answers A and B are correct.

increases the supply of hybrid corn.

increases the demand for hybrid corn.

decreases the supply of hybrid corn.

Both answers A and C are correct.

ECON312N Principles of Economics

Week 4 Quiz

Question 1

Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to

Some amount, but more information is needed to determine her fixed cost.

$35.

$85.

$79.

$20.

Question 2

Mylan Pharmaceuticals holds a patent on the EpiPen – designed to inject epinephrine into shock victims. In 2016, Mylan received criticism for charging $600 for this life-saving drug. The market for EpiPens is considered ________ which means that the price of an Epipen ________ its marginal cost.

perfect competition; equals

an oligopoly; equals

a monopoly; is greater than

a monopoly; equals

monopolistic competition; is greater than

Question 3

Use the figure above to answer this question. Mary is the only veterinarian in a small town. To maximize her profit, Mary will choose to treat ________ animals per hour and charge ________ per customer in order to ________.

6; $20; minimize cost in order to attract more customers

6; $30; minimize average total cost

4; $50; operate on the inelastic portion of her demand curve

4; $50; maximize profit

6; $20; maximize profit

Question 4

Cost curves shift if

i. technology changes.

ii. the prices of factors of production change.

iii. productivity changes.

i, ii, and iii

i only

i and iii

i and ii

ii only

Question 5

Austin owns the Fruit Bowl food truck. Which of the following would be short run decisions for Austin?

i. how much fruit to buy

ii. how many workers to hire

iii. installing a new stove in his truck

i only

i and ii

i, ii and iii

ii only

ii and iii

ECON312N Principles of Economics

Week 6 Quiz

Question 1

In 2010, the GDP price index was 101.2 and real GDP was $14.8 trillion.

In 2011, nominal GDP was $15.5 trillion and real GDP was $15.0 trillion.

Calculate the increase in nominal GDP and the increase in the GDP price index in 2011.

The percentage increase in nominal GDP in 2011 is

The percentage increase in the GDP price index in 2011 is

Question 2

The change in potential real GDP and aggregate supply shown in the graph above can be a result of

a decrease in the money wage rate.

a decrease in the money price of oil.

an increase in the quantity of capital.

a fall in the price level.

an increase in the real wage rate.

Question 3

Marla is an associate at JCPenney who wants to work 40 hours week but works 25 hours a week because sales at JC Penney are slow. Marla works part time for _______ reasons.

Joe is a server at Olive Garden who wants to work 40 hours a week but works 15 hours a week because the number of patrons at Olive Garden has decreased. Joe works part time for _______ reasons.

?economic; noneconomic

?economic; economic

?noneconomic; noneconomic

?noneconomic; economic

Question 4

Which of the following is true?

To be classified as employed, you must be a full-time worker at a paid job.

To be classified as employed, you must work at least 1 hour per week at a paid job or 15 hours or more as an unpaid worker in your family business.

To be classified as employed, you must work at least 20 hours per week at a paid job.

If you are not working and turn down a job offer in the previous week, you are no longer classified as unemployed.

Part-time workers are all those who work less than 40 hours per week.

Question 5

Based on the figure above, in which quarter or quarters did a recession occur?

between 2013, 2nd quarter to 2014, 2nd quarter

between 2014, 1st quarter to 2014 2nd quarter

after 2013, 2nd quarter

in 2013, 2nd quarter

between 2012, 2nd quarter to 2013, 2nd quarter and also between 2014, 2nd quarter to the end of the figure

ECON312N Principles of Economics

Week 8 Quiz

Question 1

How do the Fed’s monetary policy actions influence the exchange rate?

The Fed influences the exchange rate by changing the U.S. interest rate differential.

The Fed influences the exchange rate by conducting transactions in the foreign exchange market.

The Fed can influence the exchange rate only if it changes expectations.

The Fed? can’t influence the exchange rate because the Fed has no influence on foreign interest rates.

Question 2

The Fed’s policy tools include

required reserve ratios, the discount rate, open market operations, and extraordinary crisis measures.

holding deposits for the U.S. government, reserve requirements, and the discount rate.

required reserve ratios, income tax rates, and open market operations.

setting regulations for lending standards and extraordinary crisis measures.

supervision of the banking system and buying and selling commercial banks.

Question 3

The tax multiplier is the

magnification effect of a change in taxes on government expenditures.

magnification effect of a change in taxes on the budget deficit.

magnification effect of a change in taxes on the national debt.

magnification effect of a change in taxes on aggregate demand.

magnification effect of a change in taxes on aggregate supply.

Question 4

The monetary multiplier is 3 and the change in the monetary base is $100,000. How much will the quantity of money increase?

$100,000

$200,000

$70,000

$300,000

$33,333

Question 5

There are four limitations to the effectiveness of discretionary fiscal policy. Which item below is NOT one of these limitations?

estimating potential GDP

fiscal multiplier

shrinking area of lawmaker discretion

economic forecasting

lawmaking time lag