Podcast
Questions and Answers
What is the marginal utility of the second unit of Fishing Gear for Emily?
What is the marginal utility of the second unit of Fishing Gear for Emily?
Which combination of goods provides the maximum utility without exceeding Emily's budget?
Which combination of goods provides the maximum utility without exceeding Emily's budget?
What effect does risk aversion typically have on a person's choice between two gambles?
What effect does risk aversion typically have on a person's choice between two gambles?
In the context of Allais’ paradox, how would a person's choice between the two options likely be affected?
In the context of Allais’ paradox, how would a person's choice between the two options likely be affected?
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What type of good is a concert that has plenty of room for everyone to enjoy?
What type of good is a concert that has plenty of room for everyone to enjoy?
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Which classification accurately describes someone likely to be in poverty?
Which classification accurately describes someone likely to be in poverty?
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What tendency is exhibited by a person who believes in the hot hand fallacy?
What tendency is exhibited by a person who believes in the hot hand fallacy?
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What triggers the free-rider problem?
What triggers the free-rider problem?
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What strategy do credit card companies use to attract new customers?
What strategy do credit card companies use to attract new customers?
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Which statement reflects the notion of nonexcludability in goods?
Which statement reflects the notion of nonexcludability in goods?
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Which of the following is a defining feature of a rival good?
Which of the following is a defining feature of a rival good?
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Why might some individuals fall into the trap of excessive credit card use?
Why might some individuals fall into the trap of excessive credit card use?
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What behavioral principle does a sneaker store use by offering a limited-time print run of sneakers for only a month?
What behavioral principle does a sneaker store use by offering a limited-time print run of sneakers for only a month?
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What concept explains the salary difference between jobs in different locations, if all else is equal?
What concept explains the salary difference between jobs in different locations, if all else is equal?
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What is the primary explanation for a Gini coefficient of 0.28 in Germany compared to 0.47 in the United States?
What is the primary explanation for a Gini coefficient of 0.28 in Germany compared to 0.47 in the United States?
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If external costs of production are present but not accounted for, what can be said about marginal cost in relation to marginal social cost?
If external costs of production are present but not accounted for, what can be said about marginal cost in relation to marginal social cost?
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Which of the following best describes diminishing marginal utility?
Which of the following best describes diminishing marginal utility?
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Which gamble has the highest expected value given their probabilities and outcomes?
Which gamble has the highest expected value given their probabilities and outcomes?
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In economic terms, which of the following represents the notion that consumers must pay a set amount before receiving benefits from their insurance?
In economic terms, which of the following represents the notion that consumers must pay a set amount before receiving benefits from their insurance?
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What effect does a bias in favor of the status quo have on decision-making?
What effect does a bias in favor of the status quo have on decision-making?
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Which statement best describes how a person maximizes their utility within a budget constraint?
Which statement best describes how a person maximizes their utility within a budget constraint?
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Which of the following is NOT a reason contributing to high healthcare spending in the US?
Which of the following is NOT a reason contributing to high healthcare spending in the US?
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How can an insurance company discourage dangerous driving behavior after a customer has purchased car insurance?
How can an insurance company discourage dangerous driving behavior after a customer has purchased car insurance?
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What is the role of price in the insurance market described in the context of low and high-risk customers?
What is the role of price in the insurance market described in the context of low and high-risk customers?
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In a variation of the Monty Hall problem with four doors, what is the probability of winning if you switch doors after the host reveals two donkeys?
In a variation of the Monty Hall problem with four doors, what is the probability of winning if you switch doors after the host reveals two donkeys?
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What is an effective economic action to reach the social optimum in the presence of negative externalities?
What is an effective economic action to reach the social optimum in the presence of negative externalities?
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Which statement is TRUE about marginal utility when applied to various items?
Which statement is TRUE about marginal utility when applied to various items?
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In economic terms, what does 'inelastic demand' for healthcare services imply?
In economic terms, what does 'inelastic demand' for healthcare services imply?
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Study Notes
Exam 3 Information
- Exam version: A
- Course: Econ 102
- Total Questions: 21
- Question value: Each question is worth the same amount
- Calculator allowed: Simple calculator permitted
- Notes prohibited: Outside notes are not allowed
- Scratchwork: All scratchwork must be completed on the exam. The back page is blank for this purpose.
- Graphs: Label all graphs clearly
- Scantron: Use pencil only
- Scantron Instructions: Fill out scantron with your ID, version, name, and answer first 14 questions on the exam.
Exam Instructions
- The exam contains 21 questions.
- Label scantron with your version name, and ID, and properly write in pencil.
- Only complete the first 14 questions of your scantron.
Questions on Exam
- Question 1: What kind of good is a concert with ample space for everyone to enjoy? (rivalry/excludability)
- Question 2: What is the most accurate classification of someone who is in poverty? (Income percentile)
- Question 3: Describe the behavioral fallacy of the "hot hand"
- Question 4: What is the free-rider problem?
- Question 5: Explain how credit card companies abuse intertemporal decision-making.
- Question 6: What strategy is the shoe store using to entice customers? (Scarcity)
- Question 7: Explain the salary discrepancies with the two job offers from the location standpoint
- Question 8: Removed question
- Question 9: Compare Germany and US based on Gini coefficients.
- Question 10: Calculate the expected value of three different gambles: Gamble A, B, and C
- Question 11: What is the impact of externalities on marginal cost and social cost?
- Question 12: Does a person get less satisfaction consuming a good repeatedly over time? (Diminishing marginal utility)
- Question 13: When is the marginal utility per dollar spent maximized?
- Question 14: What are the factors that contribute to high healthcare spending in the US
- Question 15: How can an insurance company disincentivize risky behaviors in customers?
- Question 16: What is a fair price for insurance from the perspective of an insurance company?
- Question 17: Determine the probability of winning if you switch doors in a Monty Hall-esque problem.
- Question 18: Draw and explain how negative externality can be converted to social optimum through supply/demand changes
- Question 19: How many units of fishing gear and pillows can a customer buy with their budget given the prices and marginal utility.
- Question 20: Explain the effect of risk aversion on the preference for option A when there are choices to be made.
- Question 21: Explain the effect of Allais paradox on the likelihood of choosing Option A.
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Description
Prepare for your Econ 102 Exam 3 with this structured overview. This exam comprises 21 questions focused on economic concepts, including goods classification and poverty measures. Ensure you follow the instructions carefully for your scantron submission.
