📝 Practice Questions
These practice questions are from the lecture slides.
📖 Chapter 1: First Principles
Suppose Costco offers unlimited free samples on the weekends and customers respond by eating samples until they are full without buying any of the product. Do the customers that eat the free samples face an opportunity cost?
Suppose Costco offers unlimited free samples on the weekends and customers respond by eating samples until they are full without buying any of the product. Economists would refer to this as an example of:
In most fast-food chains, there is one person to take the order, another to make each item of food, and another to bag the items up. This is referred to as:
A low-skilled worker may work full-time and still earn an income that falls below the poverty line. Some economists consider this a failure related to:
📊 Chapter 3: Supply and Demand
When the price of petroleum goes up, what happens to the demand for solar power and the demand for cars?
Which of the following will cause an increase in the demand for automobiles?
If garden gnomes regain popularity, what will happen?
If the cost of wood falls, what will happen to equilibrium price and quantity in the violin market?
Consumers in Mayville consider houses and apartments to be substitutes. There is an increase in the price of houses at the same time three new apartment buildings open. In the market for apartments, what happens?
📈 Chapter 6: Macroeconomics - The Big Picture
If a country’s imports are $1.2 billion and exports are $1.3 billion, what is it running?
What policy uses taxes and government spending to influence the economy?
If the economy is booming, what happens to inflation?
💡 More questions will be added regularly! 🎓🔥