Midterm Exam 2022 (PDF)

Ad i i R h N H l D k Shafira Rosa Ardhianti  Dashboard  My courses  Ekonomika Pengantar 1_MOOC  UTS/Midterm Exam  Midterm Exam_RegulerE Started on Wednesday, 5 October 2022, 9:30 AM State Finished Com...

Ad i i R h N H l D k Shafira Rosa Ardhianti  Dashboard  My courses  Ekonomika Pengantar 1_MOOC  UTS/Midterm Exam  Midterm Exam_RegulerE Started on Wednesday, 5 October 2022, 9:30 AM State Finished Completed on Wednesday, 5 October 2022, 11:16 AM Time taken 1 hour 45 mins Marks 44.00/50.00 Grade 88.00 out of 100.00 Question 1 Correct Mark 1.00 out of 1.00 A drought in California destroys many red grapes. As a result of the drought, the consumer surplus in the market for red grapes ______ decreases, and the consumer surplus in the market for red wine increases. increases, and the consumer surplus in the market for red wine increases. decreases, and the consumer surplus in the market for red wine decreases. increases, and the consumer surplus in the market for red wine decreases. Your answer is correct. The correct answer is: decreases, and the consumer surplus in the market for red wine decreases. Question 2 Correct Mark 1.00 out of 1.00 Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor, the _______ quantity supplied of toothpaste stays the same. quantity demanded of toothpaste decreases, and the quantity of toothpaste that firms want to supply increases. supply curve for toothpaste shifts to the right. demand curve for toothpaste shifts to the left. Your answer is correct. The correct answer is: quantity demanded of toothpaste decreases, and the quantity of toothpaste that firms want to supply increases. Question 3 Correct Mark 1.00 out of 1.00 When two individuals produce efficiently and then make a mutually beneficial trade based on comparative advantage, ____. one individual consumes inside her production possibilities frontier, while the other consumes outside hers each individual consumes a point on her own production possibilities frontier they both obtain consumption inside their production possibilities frontier they both obtain consumption outside their production possibilities frontier Your answer is correct. The correct answer is: they both obtain consumption outside their production possibilities frontier Question 4 Incorrect Mark 0.00 out of 1.00 If demand is elastic, the percentage change in quantity demanded will be greater than the percentage change in price, then if there is an increase in price of the good, the revenue will _____. fall and then increase not change increase fall Your answer is incorrect. The correct answer is: fall Question 5 Incorrect Mark 0.00 out of 1.00 Consider two individuals — Heru and Mayang — each of whom would like to wear sweaters and eat tasty food. The gains from trade between Heru and Mayang are least obvious in which of the following cases? Heru is very good at knitting sweaters and at cooking tasty food, but Mayang’s skills in both of these activities are very poor. Heru’s skills are such that he can produce only sweaters, and Mayang’s skills are such that she can produce only tasty food. Heru’s skills in knitting sweaters are fairly good, but his skills in cooking tasty food are fairly bad; Mayang’s skills in knitting sweaters are fairly bad, but her skills in cooking tasty food are fairly good. Heru is very good at knitting sweaters and at cooking tasty food; Mayang is very good at knitting sweaters, but she knows nothing about cooking tasty food. Your answer is incorrect. The correct answer is: Heru is very good at knitting sweaters and at cooking tasty food, but Mayang’s skills in both of these activities are very poor. Question 6 Correct Mark 1.00 out of 1.00 There are two statements. (i) In a market with a binding price ceiling, an increase in the ceiling will increase, the quantity supplied, decrease, the quantity demanded, and reduce the shortage. (ii) Consider the market for gasoline. Buyers would lobby for a price floor, whereas sellers would lobby for a price ceiling. Only (ii) is correct. Both (i) and (ii) are correct. Only (i) is correct. Both (i) and (ii) are wrong. Your answer is correct. The correct answer is: Only (i) is correct. Question 7 Correct Mark 1.00 out of 1.00 A tax levied on the buyers of a good shifts the _____ supply curve downward (or to the right). demand curve downward (or to the left). supply curve upward (or to the left). demand curve upward (or to the right). Your answer is correct. The correct answer is: demand curve downward (or to the left). Question 8 Correct Mark 1.00 out of 1.00 If the price rises from $4 to $6 and quantity demanded falls from 120 to 80, then the own price elasticity of demand equal to ____. -1 -0,5 -1.5 -2 Your answer is correct. The correct answer is: -1 Question 9 Correct Mark 1.00 out of 1.00 From the figure above, the area of C and E are after tax ___. tax revenue change in producer surplus. change in consumer surplus. dead weight loss Your answer is correct. The correct answer is: dead weight loss Question 10 Correct Mark 1.00 out of 1.00 From the figure above, the area of D after trade ____. change in producer surplus change in consumer surplus dead weight loss gains from trade Your answer is correct. The correct answer is: gains from trade Question 11 Incorrect Mark 0.00 out of 1.00 Junita values her time at $60 an hour. She spends 2 hours giving Sinta massage. Sinta was willing to pay as much at $300 for the massage, but they negotiate a price of $200. In this transaction, _____ producer surplus is $20 larger than consumer surplus. consumer surplus is $40 larger than producer surplus. producer surplus is $40 larger than consumer surplus. consumer surplus is $20 larger than producer surplus. Your answer is incorrect. The correct answer is: consumer surplus is $40 larger than producer surplus. Question 12 Correct Mark 1.00 out of 1.00 Which of the following is not an example of the opportunity cost of going to school? The nap a student could have enjoyed if he had not attended class. The party a student could have enjoyed if he had not stayed in to study for his exam. The money a student could have earned by working if he had not gone to college. The money a student spends on rent for his apartment while attending school. Your answer is correct. The correct answer is: The money a student spends on rent for his apartment while attending school. Question 13 Correct Mark 1.00 out of 1.00 The demand curve for cookies is downward sloping. When the price of cookies is $2, the quantity demanded is 100. If the price rises to $3, what happens to consumer surplus? It rises by more than $100. It rises by less than $100. It falls by less than $100. It falls by more than $100. Your answer is correct. The correct answer is: It falls by less than $100. Question 14 Incorrect Mark 0.00 out of 1.00 Kania can cook dinner in 40 minutes and wash the laundry in 30 minutes. Her roommate takes half as long to do each task. How should the roommates allocate the work? Kania should do more of the cooking based on her comparative advantage. There are no gains from trade in this situation. Kania should do more of the washing based on her absolute advantage. Kania should do more of the washing based on her comparative advantage. Your answer is incorrect. The correct answer is: Kania should do more of the cooking based on her comparative advantage. Question 15 Correct Mark 1.00 out of 1.00 In a market with a binding price ceiling, an increase in the ceiling will ________ the quantity supplied, ________ the quantity demanded and reduce the ________. decrease, increase, surplus increase, decrease, surplus increase, decrease, shortage decrease, increase, shortage Your answer is correct. The correct answer is: increase, decrease, shortage Question 16 Correct Mark 1.00 out of 1.00 The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price. Refer to the figure above. The deadweight loss created by the tariff is represented by the area ___ B+D+E+F A D+F D+E+F Your answer is correct. The correct answer is: D+F Question 17 Correct Mark 1.00 out of 1.00 The Laffer curve illustrates that, in some circumstances, the government can reduce a tax on a good and increase the ____ government’s tax revenue. price paid by consumers. equilibrium quantity. deadweight loss. Your answer is correct. The correct answer is: government’s tax revenue. Question 18 Correct Mark 1.00 out of 1.00 An economy produces fried chickens and batiks. If a discovery of the remarkable health benefits of fried chickens were to change consumers’ preferences, it would ____. move the economy inside the production possibilities frontier contract the production possibilities frontier move the economy along the production possibilities frontier expand the production possibilities frontier Your answer is correct. The correct answer is: move the economy along the production possibilities frontier Question 19 Correct Mark 1.00 out of 1.00 How taxes on sellers affect market outcomes? Sellers get a lower price for their product before paying the tax. Sellers pay more for the good, and buyers receive less. The quantity of the good sold is smaller in the new equilibrium. Taxes encourage market activity. Your answer is correct. The correct answer is: The quantity of the good sold is smaller in the new equilibrium. Question 20 Correct Mark 1.00 out of 1.00 An increase in ________ will cause a movement along a given demand curve, which is called a change in ________. supply, quantity demanded supply, demand demand, supply demand, quantity supplied Your answer is correct. The correct answer is: supply, quantity demanded Question 21 Correct Mark 1.00 out of 1.00 A tax levied on the sellers of a good shifts the _____ demand curve downward (or to the left). demand curve upward (or to the right). supply curve upward (or to the left). supply curve downward (or to the right). Your answer is correct. The correct answer is: supply curve upward (or to the left). Question 22 Correct Mark 1.00 out of 1.00 The ability of firms to enter and exit a market over time means that, in the long run, ____. the demand curve is more elastic. the demand curve is less elastic. the supply curve is more elastic. the supply curve is less elastic. Your answer is correct. The correct answer is: the supply curve is more elastic. Question 23 Correct Mark 1.00 out of 1.00 A production possibilities frontier is a straight line when ____ an economy is interdependent and engaged in trade instead of self-sufficient. the rate of tradeoff between the two goods being produced is constant. the rate of tradeoff between the two goods being produced depends on how much of each good is being produced. the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. Your answer is correct. The correct answer is: the rate of tradeoff between the two goods being produced is constant. Question 24 Correct Mark 1.00 out of 1.00 Example of a discussion of minimum-wage laws: Budi says, “Minimum-wage laws cause unemployment.” Ani says, “The government should raise the minimum wage.” The statement of Budi is ____. positive statement normative statement neither positive nor normative statement All answers are not correct Your answer is correct. The correct answer is: positive statement Question 25 Correct Mark 1.00 out of 1.00 Which of the following is not correct? Economics has its own language and its own way of thinking, but few other fields of study do. Supply, demand, elasticity, comparative advantage, consumer surplus, and deadweight loss are all terms that are part of the economist’s language. The value of the economist’s language lies in its ability to provide you with a new and useful way of thinking about the world in which you live. Economists use some familiar words in specialized ways. Your answer is correct. The correct answer is: Economics has its own language and its own way of thinking, but few other fields of study do. Question 26 Correct Mark 1.00 out of 1.00 The principle of comparative advantage suggests that each good should be produced by the country with a comparative advantage in producing that good. The comparative advantage here means ______. larger cost of productions larger opportunity cost smaller opportunity cost smaller cost of production Your answer is correct. The correct answer is: smaller opportunity cost Question 27 Correct Mark 1.00 out of 1.00 Economists, like mathematicians, physicists, and biologists, _____ (i) make use of the scientific method. (ii) try to address their subject with a scientist’s objectivity. (iii) devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories. (i) and (ii) are correct (i) and (iii) are correct (i), (ii), and (iii) are correct (ii) and (iii) are correct Your answer is correct. The correct answer is: (i), (ii), and (iii) are correct Question 28 Correct Mark 1.00 out of 1.00 There are two statements. (i) When two individuals produce efficiently and then make a mutually beneficial trade based on comparative advantage, they both obtain consumption outside their production possibilities frontier. (ii) A production possibilities frontier is a straight line when the rate of tradeoff between the two goods being produced is constant. Only (ii) is correct Both (i) and (ii) are wrong Both (i) and (ii) are correct Only (i) is correct Your answer is correct. The correct answer is: Both (i) and (ii) are correct Question 29 Correct Mark 1.00 out of 1.00 If a policymaker wants to raise revenue by taxing goods while minimizing the deadweight losses, he should look for goods with ________ elasticities of demand and ________ elasticities of supply. large, large small, small small, large large, small Your answer is correct. The correct answer is: small, small Question 30 Correct Mark 1.00 out of 1.00 Suppose after graduating from college you get a job working at a bank earning $30,000 per year. After two years of working at the bank earning the same salary, you have an opportunity to enroll in a one-year graduate program that would require you to quit your job at the bank. Which of the following should not be included in a calculation of your opportunity cost? The $45,000 salary that you will be able to earn after having completed your graduate program. The $30,000 salary that you could have earned if you retained your job at the bank. The cost of tuition and books to attend the graduate program. The value of insurance coverage and other employee benefits you would have received if you retained your job at the bank. Your answer is correct. The correct answer is: The $45,000 salary that you will be able to earn after having completed your graduate program. Question 31 Correct Mark 1.00 out of 1.00 The principle of comparative advantage asserts that ______ not all countries can benefit from trade with other countries. the world price of a good will prevail in all countries, regardless of whether those countries allow international trade in that good. countries can become better off by exporting goods, but they cannot become better off by importing goods. countries can become better off by specializing in what they do best. Your answer is correct. The correct answer is: countries can become better off by specializing in what they do best. Question 32 Correct Mark 1.00 out of 1.00 When a buyer’s willingness to pay for a good is equal to the price of the good, the ____ buyer’s consumer surplus for that good is maximized. price of the good exceeds the value that the buyer places on the good. buyer will buy as much of the good as the buyer’s budget allows. buyer is indifferent between buying the good and not buying it. Your answer is correct. The correct answer is: buyer is indifferent between buying the good and not buying it. Question 33 Correct Mark 1.00 out of 1.00 If a nation that does not allow international trade in textile has a domestic price of textile lower than the world price, then _____ the nation has a comparative advantage in producing textile and would become a textile importer if it opened up trade. the nation does not have a comparative advantage in producing textile and would become a textile importer if it opened up trade. the nation has a comparative advantage in producing textile and would become a textile exporter if it opened up trade. the nation does not have a comparative advantage in producing textile and would become a textile exporter if it opened up trade. Your answer is correct. The correct answer is: the nation has a comparative advantage in producing textile and would become a textile exporter if it opened up trade. Question 34 Correct Mark 1.00 out of 1.00 Most economists describe the short-run effects of monetary injections as follows: (i) Increasing the amount of money in the economy stimulates the overall level of spending and thus the demand for goods and services. (ii) Higher demand may over time cause firms to raise their prices, but in the meantime, it also encourages them to hire more workers and produce a larger quantity of goods and services. (iii) More hiring means lower unemployment (iv) A higher level of prices is the primary effect of increasing the quantity of money. (i), (ii), (iii), and (iv) are correct. Only (i) is correct. Only (iv) is correct. (i), (ii), and (iii) are correct. Your answer is correct. The correct answer is: (i) (ii) d (iii) t  (i), (ii), and (iii) are correct. Question 35 Correct Mark 1.00 out of 1.00 Refer to figure above. If the government imposes a price ceiling at $6, it would be _____ binding if market demand is Demand A and non-binding if market demand is Demand B. non-binding if market demand is Demand A and binding if market demand is Demand B. binding if market demand is Demand A or Demand B. non-binding if market demand is Demand A or Demand B. Your answer is correct. The correct answer is: non-binding if market demand is Demand A and binding if market demand is Demand B. Question 36 Correct Mark 1.00 out of 1.00 The most obvious benefit of specialization and trade is that they allow us to ____ work more hours per week than we otherwise would be able to work. consume more goods than we otherwise would be able to consume. consume more goods by forcing people in other countries to consume fewer goods. spend more money on goods that are beneficial to society, and less money on goods that are harmful to society. Your answer is correct. The correct answer is: consume more goods than we otherwise would be able to consume. Question 37 Correct Mark 1.00 out of 1.00 A life-saving medicine without any close substitutes will tend to have ____. a large elasticity of demand. a large elasticity of supply. a small elasticity of demand. a small elasticity of supply. Your answer is correct. The correct answer is: a small elasticity of demand. Question 38 Correct Mark 1.00 out of 1.00 If a price ceiling is not binding, then ____ there will be no effect on the market price or quantity sold. there will be a surplus in the market. the market will be less efficient than it would be without the price ceiling. there will be a shortage in the market. Your answer is correct. The correct answer is: there will be no effect on the market price or quantity sold. Question 39 Correct Mark 1.00 out of 1.00 Below is one of models in economics. Production at a point inside the curve (such as D) is inefficient, because ____. the economy is producing more than it can from the resources it has available. Both answers are correct. the economy is producing less than it can from the resources it has available. Both answers are wrong. Your answer is correct. The correct answer is: the economy is producing less than it can from the resources it has available. Question 40 Correct Mark 1.00 out of 1.00 Relationship between Price and Restaurant Meals. Refer to figure above. The slope of the line containing points A and B is ___. 2 1/2 -1/2 -2 Your answer is correct. The correct answer is: -2 Question 41 Correct Mark 1.00 out of 1.00 Most economists describe the short-run effects of monetary injections as follows, except: Increasing the amount of money in the economy stimulates the overall level of spending and thus the demand for goods and services. Higher demand may over time cause firms to raise their prices, but in the meantime, it also encourages them to hire more workers and produce a larger quantity of goods and services. A higher level of prices is the primary effect of increasing the quantity of money. More hiring means lower unemployment. Your answer is correct. The correct answer is: A higher level of prices is the primary effect of increasing the quantity of money. Question 42 Incorrect Mark 0.00 out of 1.00 Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold? An increase in the price of peanut better, a complement to jelly. An increase in consumers’ incomes, as long as jelly is a normal good. An increase in the price of Marshmallow Fluff, a substitute for jelly. An increase in the price of grapes, an input into jelly. Your answer is incorrect. The correct answer is: An increase in consumers’ incomes, as long as jelly is a normal good. Question 43 Incorrect Mark 0.00 out of 1.00 Which of the following is not an example of scarcity? Miranda has an unlimited supply of oranges in her orchard. Every individual in society cannot attain the highest standard of living to which he or she might aspire. Each member of a household cannot get everything he or she wants. Only some people can afford to buy a BMW automobile. Your answer is incorrect. The correct answer is: Only some people can afford to buy a BMW automobile. Question 44 Correct Mark 1.00 out of 1.00 Refer to figure above, which of the following statements is not correct? Supply curve B is perfectly elastic. Supply curve A is perfectly inelastic. Supply curve C is unit elastic. Supply curve D is more elastic than supply curve C. Your answer is correct. The correct answer is: Supply curve C is unit elastic. Question 45 Correct Mark 1.00 out of 1.00 What happens to the total surplus in a market when the government imposes a tax? Total surplus is unaffected by the tax. Total surplus increases by the amount of the tax. Total surplus decreases. Total surplus increases but by less than the amount of the tax. Your answer is correct. The correct answer is: Total surplus decreases. Question 46 Correct Mark 1.00 out of 1.00 Ceiling price (i) If a price ceiling is not binding, then there will be no effect on the market price or quantity sold. (ii) If the price ceiling is lower than the equilibrium price, the ceiling is a binding constraint and there will be a surplus of the good. Both (i) and (ii) are wrong. Only (ii) is correct. Both (i) and (ii) are correct. Only (i) is correct. Your answer is correct. The correct answer is: Only (i) is correct. Question 47 Correct Mark 1.00 out of 1.00 Classify the following topics as relating to microeconomics. The relationship between the inflation rate and changes in the quantity of money. A firm’s decision about how many workers to hire. The effect of government regulations on auto emissions. The impact of higher national saving on economic growth. Your answer is correct. The correct answer is: A firm’s decision about how many workers to hire. Question 48 Correct Mark 1.00 out of 1.00 Which of the following trade policies would benefit consumers, hurt producers, and increase the amount of trade? Starting to allow trade when the world price is greater than the domestic price. The increase of a tariff in an importing country. The reduction of a tariff in an importing country. Starting to allow trade when the world price is less than the domestic price. Your answer is correct. The correct answer is: Starting to allow trade when the world price is less than the domestic price. Question 49 Correct Mark 1.00 out of 1.00 A competitive market is one in which there ______ are so many buyers and so many sellers that each has a negligible impact on the price of the product. are many sellers, and each seller has the ability to set the price of his product. is only one seller, but there are many buyers. are many sellers, and they compete with one another in such a way that some sellers are always being forced out of the market. Your answer is correct. The correct answer is: are so many buyers and so many sellers that each has a negligible impact on the price of the product. Question 50 Correct Mark 1.00 out of 1.00 Own price elasticity (i) Supply and demand both tend to be more elastic in the long run and more inelastic in the short run. (ii) If a firm is facing elastic demand, then the firm should decrease price to increase revenue. Both (i) and (ii) are correct. Only (i) is correct. Only (ii) is correct. Both (i) and (ii) are wrong. Your answer is correct. The correct answer is: Both (i) and (ii) are correct.