8/9/2018 Midterm Exam

Question 1 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Economics is about managing scarcity of the limited resources.

Answer: true

Question 2 The following construction materials are variable inputs, except:

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answered
Select one:
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a. gravel
b. wood
c. steel

d. cement mixer

Question 3 The extra satisfaction you get from successive consumption of the same product is:
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answered
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a. Quantity Demanded

b. Total Satisfaction

c. Indifference Curve

d. Marginal Utility

Question 4 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
An entrepreneur is a person who manages the factors of production and assumes the
risks of a business venture.

Answer: true

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8/9/2018 Midterm Exam
Question 5 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
The consumers’ decision on what goods and services to buy is affected by tastes and
preferences.

Answer: true

Question 6 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
When total utility is at its maximum, the marginal utility is equal to zero.

Answer: true

Question 7 The point of tangency between the indifference curve and the budget line signifies:
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answered
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a. The best possible combination of goods and services within the
consumer budget
b. All of the choices

c. The market equilibrium point

d. The consumers’ and producers’ demand and supply, respectively

Question 8 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
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1.00 For example:
Q: Whales are reptiles. A: False - mammals
Stage 3 of production is characterized by increasing product curves.

Answer: false - decreasing

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8/9/2018 Midterm Exam
Question 9 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
We can determine supply and demand elasticity through graphs.

Answer: true

Question 10 Supply elasticity is affected not only by price but by any of the following:
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a. Availability of materials
b. The Product type
c. All of the choices

d. Inventory

Question 11 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Economic profit takes into account the opportunity costs.

Answer: true

Question 12 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
An isoquant map is composed of a series of indifference curves.

Answer: false - indifference map

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8/9/2018 Midterm Exam
Question 13 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Production cost has an inverse relationship with demand.

Answer: false - supply

Question 14 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
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Q: Whales are reptiles. A: False - mammals
The fixed inputs are observed to be underutilized during Stage 1 of production.

Answer: true

Question 15 The extra unit produced per unit change in the quantity of variable input keeping all
Not yet other factors constant is:
answered
Marked out of Select one:
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a. Average Product
b. Diminishing product

c. Total Product
d. Marginal product

Question 16 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
The end point of Stage 1 is characterized by a zero marginal product.

Answer: False - Stage 2

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8/9/2018 Midterm Exam
Question 17 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
 
Economists who are concerned with the behavior of individual households, firms, and
industries are studying macroeconomics.

Answer: false - microeconomics

Question 18 Indifference curve (IC) M lies between IC A and IC I. Your graph indicates that:
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a. Satisfaction levels of the 3 ICs vary
b. None of the choices
c. IC M has the highest value of satisfaction

d. IC M has the lowest value of satisfaction

Question 19 Series of indifference curves in one diagram is called indifference map.

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a. False

b. True

Question 20 The indifference curve analysis is brain child of:

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a. Vilfredo Pareto

b. William Stanley Jevons

c. John Maynard Keynes

d. Herman Heinrich Gossen

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8/9/2018 Midterm Exam
Question 21 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Isocost is the producer’s indifference curve.

Answer: false - isoquant

Question 22 Indifference curves intersect.

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Select one:
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a. True

b. False

Question 23 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
The firm’s selling price is an important determinant of its revenue.

Answer: true

Question 24 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
The satisfaction obtained from the consumption of commodities are measurable.

Answer: true

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8/9/2018 Midterm Exam
Question 25 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Indifference curves are downward sloping to the right and are concave in shape.

Answer: false - convex

Question 26 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Entrepreneurship is one of the production outputs.

Answer: false - inputs

Question 27 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Price demand elasticity for luxury good generally tends to be inelastic.

Answer: true

Question 28 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
The relationship between the volume of inputs and outputs can be expressed in an
equation called production function.

Answer: true

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8/9/2018 Midterm Exam
Question 29 Producer’s budget line.
Not yet
answered
Answer: isocost curve
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Question 30 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
The costs of machineries and equipments in the manufacturing business are
considered short run variable costs.

Answer: false - fixed costs

Question 31 The graphical representation of elasticity showing a horizontal curve indicates:

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Select one:
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a. cross price elasticity
b. Perfectly inelastic price Supply elasticity
c. Perfectly elastic price demand elasticity

d. Perfectly inelastic price demand elasticity

Question 32 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Isoquants are downward sloping to the right and are convex in shape.

Answer: true

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8/9/2018 Midterm Exam
Question 33 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Ceteris paribus indicates that something would be the case other things being equal.

Answer: false - constant

Question 34 A diagram with more than one indifference curve is called:

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a. Indifference Map
b. Consumption Map
c. Substitution Map

d. Preference Map

Question 35 All combinations of two products that consumers can purchase given a certain income
Not yet and product prices is the:
answered

Marked out of Select one:

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a. Indifference curve

b. Total Utility Curve

c. Budget Line

d. Demand Curve

Question 36 The cross price elasticity of rice and corn is positive which means that
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a. Rice and corn are substitutes

b. If the price of corn is decreased ,the demand for rice decreased

c. All of the choices
d. When the price of rice is increased, the demand for corn increased

e. None of the choices

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8/9/2018 Midterm Exam
Question 37 Refers to the process of converting inputs into outputs.
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Answer: production
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Question 38 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Wants and desires are goods and services for men to survive.

Answer: false - needs

Question 39 The curve showing the highest level of satisfaction is situated:

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a. Nearest from the point of origin
b. Below another indifference curve
c. None of the choices

d. Farthest from the point of origin

Question 40 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
If the demand and supply curves do not change their positions, the change in the
quantities is brought about by adjustment in income.

Answer: false - price

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8/9/2018 Midterm Exam
Question 41 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Critical thinking is an important and necessary skill in the study of economics.

Answer: true

Question 42 Production stage characterized by negative returns.

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answered
Answer: stage 3
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Question 43 Consumer behavior is directly affected by any of the following internal factors except:
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answered
Select one:
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a. Peers
b. Season
c. Raw materials cost

d. Beliefs

Question 44 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
A 15% adjustment in price leads to a 16% change in the volume. This reaction showed
an elastic price demand for the product.

Answer: true

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8/9/2018 Midterm Exam
Question 45 It is a measure of how much the quantity demanded of one good responds to a change
Not yet in the price of another good.
answered

Marked out of Select one:

1.00
a. cross price elasticity

b. Indifference curve analysis

c. Supply elasticity
d. Income elasticity

Question 46 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
The ordinal utility approach measures satisfaction in utils.

Answer: false - cardinal

Question 47 Hermann Heinrich Gossen is the proponent of ordinal utility theory.

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Select one:
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a. False

b. True

Question 48 True or False. If the statement is true, write the word True. If False, write False
Not yet and replace the underlined word with the correct term. Note that the system
answered
accepts an exact answer. Wrong spelling is considered wrong.
Marked out of
1.00 For example:
Q: Whales are reptiles. A: False - mammals
Essential goods are those that contribute to a person's comfort and well–being.

Answer: false - comfort

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8/9/2018 Midterm Exam
Question 49 The process of converting inputs into outputs is:
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Select one:
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a. Substitution

b. Supply
c. Consumption
d. Production

Question 50 The point of tangency between the isocost and the isoquant signifies:
Not yet
answered
Select one:
Marked out of
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a. The market equilibrium point
b. The consumers’ and producers’ demand and supply, respectively

c. The best possible combination of inputs within the firm’s budget

d. All of the choices

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