Eco 365 Final Exam Solution

ECO 365 Final Exam Solution
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ECO 365 Final Exam Solution
1. George Davis and Michael Wohlgenant estimate that for every 1 percent increase in the price of Christmas trees, quantity demanded falls by 0.6 percent. The demand for Christmas trees is __________________.
2. A Wall Street Journal headline reads: “Cigar Shortage Draws New Brands into Market.” The shortage resulted from a renewed interest in smoking cigars. What best describes the facts behind the headline?
3. State what type of business combination is occurring in the following scenario: Samsung and Sony become partners in a flat screen manufacturing company.
4. The price of a ticket to a rock concert is set at $35. All the tickets for the concert sell out 1 hour after they go on sale and there are still 1,000 fans who want to buy tickets. It follows that
5. According to the text, Microeconomics, Colander (2013), economics is the study of how
6. Suppose a firm finds that an additional dollar spent on labor increases output more than does an additional dollar spent on machines. Under these conditions, the firm
7. Which of the following is the best example of a macroeconomic externality?
8. Refer to the graph shown. The figure shows the demand and supply curves for eggs and shows two equilibrium points, E1 and E2. An increase in demand from D1 to D2 would cause
9. State what type of business combination is occurring in the following scenario: A tobacco producer buys a carbonated beverage plant.
10. A resource is said to have a comparative advantage if
11. Refer to the graph shown. If hamburger dinners are produced by a perfectly competitive industry with a market demand D:
12. Oligopoly is characterized by
13. Refer to the table shown. Diminishing marginal productivity begins when the
14. When Ross Perot ran for president as a third party candidate in 1992, he argued that free trade with Mexico would result in massive...