1. Which statement would best represent normative economics?

A.

Every person should obtain as much as education as possible.

B.

Enforcing a price ceiling on rent may lead to a shortage.

C.

As the price of gasoline rises, people will buy less.

D.

As a person makes more wage, they are likely to buy more.

2. If the price of toothpaste went down 10% and demand rose 10%, we would say the demand of this good is

A.

Perfectly elastic.

B.

Perfectly inelastic.

C.

Unit elastic.

D.

Inelastic.

3. A person bought 50,000 doge coins for $1,000 and sold all their doge coins for $10,000. They are subject to a 15% capital gain tax. How much does this person owe?

A.

$900

B.

$1,500

C.

$150

D.

$1,350

4. Alyssa and Doug decide to open a tire shop together in order to take on less risk but earn less profit. The structure of their tire shop is most likely a(n)

A.

Public Corporation.

B.

Partnership.

C.

Non-profit charity.

D.

Proprietorship.

5. Utah has a gini-index coefficient of .4063, while New York has gini-index coefficient of .5229. What can we conclude from this information?

A.

Utah has more wage equality than New York.

B.

New York has more wage equality than Utah.

C.

Average wage is higher in Utah.

D.

It is more expensive to live in New York.

6. Coca-Cola decides to charge 50 cents more per can of soda. As a result of this price increase, we would imagine the demand curve for PEPSI to

A.

Shift right.

B.

Experience less quantity demanded.

C.

Have no change.

D.

Shift left.

7. A medication needed for treatment of a terminal illness rises from $10 a pill to $600 a pill. Demand for the medication remained unchanged. This good is likely

A.

Lycolme elastic.

B.

Unit elastic.

C.

Perfectly elastic.

D.

Perfectly inelastic.

8. Which concept would likely be covered in microeconomics course and NOT a macroeconomics course?

A.

Interest rates and the central bank.

B.

Individual utility and consumer choice.

C.

The volatility of money within an economy as a whole.

D.

Tariffs, quotas, and protectionism.

9. When discussing the difference between the short run and long run in ECONOMICS, when does the long run occur?

A.

After 10 years.

B.

The period when production becomes profitable.

C.

The period when all factors and costs are fixed.

D.

The period when all factors and costs are variable.

10. In order to maximize profit, the monopolist produces goods at the point where

A.

Marginal cost is equal to fixed cost.

B.

Marginal cost is equal to supply.

C.

Marginal cost is equal to marginal revenue.

D.

Marginal cost is equal to average total cost.