eco365 final exam study guide
Eco 265 Final Studyguide
ECO/365 Final Examination Study Guide
This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this Study Guide to check your answers.
Week One: Fundamentals of Microeconomics
Objective: Differentiate between macroeconomics and microeconomics.
1. Macroeconomics is the study of individual choice and how that choice is influenced by economic forces the study of the pricing policies of firms and the purchasing decisions of households the study of aggregate economic relationships an analysis of economic reality that proceeds from the parts to the whole
2. The invisible hand theorem comes from microeconomics macroeconomics sociology political science
Objective: Analyze the effect of changes in supply and demand on the equilibrium price and quantity.
3. The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes up, the quantity demanded goes up up, the quantity demanded goes down down, the quantity demanded goes down
down, the quantity demanded stays the same
4. Which of the following situations best demonstrates the law of demand?
Moviegoers react to an increase in the price of a ticket by seeing fewer movies per year.
Moviegoers see fewer movies per year due to an overall decrease in the quality of newly released motion pictures.
A drought causes a decrease in the availability of pumpkins, resulting in fewer jack-o-lanterns displayed on Halloween.
An increase in the number of people writing economics textbooks results in a decrease in average textbook prices.
Objective: Determine how elasticities affect pricing and purchasing decisions.
5. If quantity
ECO/365 Final Examination Study Guide
This study guide prepares you for the Final Examination you complete in the last week of the course. It contains practice questions, which are related to each week’s objectives. Highlight the correct response, and then refer to the answer key at the end of this Study Guide to check your answers.
Week One: Fundamentals of Microeconomics
Objective: Differentiate between macroeconomics and microeconomics.
1. Macroeconomics is the study of individual choice and how that choice is influenced by economic forces the study of the pricing policies of firms and the purchasing decisions of households the study of aggregate economic relationships an analysis of economic reality that proceeds from the parts to the whole
2. The invisible hand theorem comes from microeconomics macroeconomics sociology political science
Objective: Analyze the effect of changes in supply and demand on the equilibrium price and quantity.
3. The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes up, the quantity demanded goes up up, the quantity demanded goes down down, the quantity demanded goes down
down, the quantity demanded stays the same
4. Which of the following situations best demonstrates the law of demand?
Moviegoers react to an increase in the price of a ticket by seeing fewer movies per year.
Moviegoers see fewer movies per year due to an overall decrease in the quality of newly released motion pictures.
A drought causes a decrease in the availability of pumpkins, resulting in fewer jack-o-lanterns displayed on Halloween.
An increase in the number of people writing economics textbooks results in a decrease in average textbook prices.
Objective: Determine how elasticities affect pricing and purchasing decisions.
5. If quantity