ECO 204 Week 2 Quiz | Assignment Help | Ashford University
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- 05 Mar 2020
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ECO 204 Week 2 Quiz | Assignment Help | Ashford University
Week 2 - Quiz
Question 1
The elasticity at the midpoint between two points on a demand curve is called __________ elasticity.
o Arc
o Unit
o Cross
o Price
Question 2
What is price elasticity of supply?
o The measure of the responsiveness of the quantity supplied to changes in the price
o The sum of supply plus demand
o The measure of the responsiveness of the quantity supplied to changes in demand
o The opposite of price inelasticity of demand
Question 3
Using Table 4.1, the demand curve schedule for a straight-line demand curve, what is the percentage change in quantity demanded from 10 units to 25 units?
Table 4.1: Demand curve schedule for straight-line demand curve in Figure 4.5
Price Quantity demanded
$0.50 25
1.00 20
1.20 18
1.40 16
1.60 14
1.80 12
2.00 10
2.20 8
2.40 6
2.60 4
2.80 2
3.00 0
o 25%
o 150%
o 15%
o 250%
Question 4
__________ is the entire amount of satisfaction expected from buying a good, whereas __________ is the change in overall utility from buying one more or one less unit of a good.
o Total utility; marginal utility
o Consumer surplus; budget constraint
o Budget constraint; consumer surplus
o Marginal utility; total utility
Question 5
When the fourth cup of coffee is expected to provide less additional pleasure than the third cup of coffee, this is called the principle of __________.
o Diminishing returns
o Diminishing marginal utility
o Long-acting utility
o Total utility
Question 6
What does the equation represent?
o Total marginal utile
o Utility maximization
o Marginal equilibrium
o The optimum consumption rate
Question 7
Many externalities result from the fact that __________.
o Property rights are not clearly defined
o Tort law is often unenforceable
o Efficiency is more important than equity
o A contract is too complicated
Question 8
Which of the following scenarios would most likely involve property law?
o An arrogant waiter dumped orange juice down Jack’s back.
o A trespasser fell into Jack’s Japanese koi pond.
o Jack’s microwave oven would not defrost his frozen dinners.
o A rock star failed to appear at a concert for which Jack bought tickets.
Question 9
Laws that deal with the enforcement of voluntary exchanges are called __________ laws.
o Property
o Contract
o Common
o Tort
Question 10
A negative externality exists when __________.
o All costs are taken into account in the demand curve
o The marginal social costs are not taken into account in the supply curve
o All costs are taken into account in the supply curve
o The market demand curve is not the true demand curve
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