Introduction of Economics for NBS Answer AlI Questions Final Exam 14 December 20

Question

Introduction of Economics for NBS Answer AlI Questions Final Exam 14 December 2017 Fal 2017/2018 02E/11E/53E/70E Section l: Multiple Choice Questions, Answer All Questions 1. Which of the following would cause a shift to the right of the supply curve for gasoline? I. A large increase in the price of public transportation. Il. A large decrease in the price of automobiles II., A large reduction in the costs of producing gasoline. A I only B. Il only. C. IlI only D. Il and Ill only. 2. If the demand for textbooks is inelastic, then a decrease in the price of textbooks will A increase total revenue of textbook sellers. B. decrease total revenue of textbook sellers. C. not change total revenue of textbook sellers. D. The re is not enough information to answer this question. 3. The price of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that: A. good A is used to produce good B. B. good B is used to produce good A. C. goods A and B are substitutes. D. goods A and B are complements. 4. What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that coffee prevents heart attacks? A Both the equilibrium price and quantity would increase. B. Both the equilibrium price and quantity would decrease. C. The equilibrium price would increase, and the effect on equilibrium quantity would be ambiguous. D. The equilibrium quantity would increase, and the effect on equilibrium price would be ambiguous. 5. An increase in price causes an increase in total revenue when demand is A. elasti. B. inelastic C. unit elastic. D. All of the above are possible. 6. When demand is inelastic, the price elasticity of demand is A. less than 1, and price and total revenue will move in the same direction. B. less than 1, and price and total revenue will move in opposite directions. C. greater than 1, and price and total revenue will move in the same direction. D. greater than 1, and price and total revenue will move in opposite directions.

Explanation / Answer

1.Ans: iii Only A large reduction in the cost of producing gasoline

2.Ans: B

3.Ans: D

4.Ans: C

5.Ans: B

6Ans: A.

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