Ashford ECO204 Week 2 Quiz Latest 2020 June

ECO204 Principles of Microeconomics

Week 2 Quiz

Question 1A tax on the purchase of a particular good, such as liquor, cigarettes, or electricity, or a broad class of goods, such as food, is called __________.

  an excise tax

  a luxury tax

  a property tax

  an income tax

Question 2Using 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

  250%

  25%

  15%

  150%

 

Question 3Any movement along a demand curve occurs in response to a change in price and is referred to as a change in __________.

  quantity demanded

  quantity needed

  supply demanded

  supply needed

 Question 4Westhill is a town where people typically buy more ground beef than steak. One month, Westhill’s EatWell grocery store raised its price on ground beef. Consequently, the substitution effect dictates that more consumers will switch __________.

  from steak to ground beef

  to a ground beef substitute

  to another grocery store

  from ground beef to steak

 Question 5If the government were to provide free health care, people would most likely consume this service until the marginal utility of the last unit was __________.

  = 1

d. > 1

  = 0

a. < 1

 Question 6When the fourth cup of coffee is expected to provide less additional pleasure than the third cup of coffee, this is called the principle of __________.

  diminishing returns

  diminishing marginal utility

  total utility

  long-acting utility

 Question 7What are the two characteristics of public goods?

  nonexclusivity and nonrivalry

  exclusivity and nonrivalry

  productivity and rivalry

  exclusivity and rivalry

 Question 8Free riding is a market concern because free riders __________.

  do not pay federal taxes

 make it difficult for the market to measure actual demand

  might consume all of a public good

  make it difficult for others to enjoy a public good

 Question 9What is the most frequently cited example of an externality?

  service charges

  public protest

  sales taxes

  pollution

 Question 10What happened when—regardless of the market demand—the United Kingdom made laws to ban smoking in enclosed workplaces?

  Respiratory illness declined sharply among workers.

  Restaurant and pub owners sued the UK’s Parliament.

  Restaurant and pub owners generally disregarded the law.

  Respiratory illness was monitored for the first time.