Econ Semester 1 Final Exam Review

Front

When a city decides to build a new park, the opportunity cost is the...

Back

other projects that cannot be funded due to the park's construction.

Front

When a product has inelastic demand, it indicates that...

Back

consumers will continue to buy the product even if the price increases.

Front

If the cost of producing Nike shoes declines, what is likely to happen in the market for Nike shoes?

Back

The supply curve will shift right.

Front

A new federal regulation imposes a cap on the number of hours that toy manufacturers can operate each day to reduce environmental pollution. What is the likely outcome of this regulation?

Back

The supply of toys will decrease due to the new operational hour restrictions.

Front

If Jay-Z does something unpopular and many fans stop supporting him, what would happen to the equilibrium price (EP)?

Back

The equilibrium price of Jay-Z tickets would decrease.

Front

The people who own or invest in portions of a corporation

Back

its stockholders.

Front

What is a common financial disadvantage faced by corporations?

Back

Double taxation.

Front

According to the profit maximization rule, what should this firm do if their MR > MC?

Back

Produce more

Front

Inability to satisfy all wants at the same time results in

Back

scarcity

Front

What is NOT an example of an opportunity cost?

Back

It costs you money to invest in an opportunity like owning a business

Answer explanation

The correct choice is 'It costs you money to invest in an opportunity like owning a business' because opportunity cost refers to the value of the next best alternative foregone, not the actual cost of pursuing an opportunity.