Principles of Economics Final Exam II

Principles of Economics Final Exam II

Instructor:	Michael Barquero		Name:
Results:			Class:
			Advisor Name:
			Date:

Multiple Choice Exam Part, Choose the Best Answer for Each Question. You will highlight your answer in red and bold for easy identification. As seen here.

Essay Portion answer the questions fully. Plagiarism and Collaborations will not be tolerated. You will write your answers underneath each answer. For easy you should put your answers in bold and underlined print. As shown here.

1. 
   An industry that uses patents to recuperate loses incurred from research and development
   
   1. 
      Fast Food
      
   2. 
      Pharmaceuticals
      
   3. 
      Airline
      
2. 
   What theory is about change agents?
   
   1. 
      Butterfly Effect
      
   2. 
      Supply and Demand
      
   3. 
      Keynesian
      
3. 
   Top executives and whom make Pricing Decisions?
   
   1. 
      Accountants
      
   2. 
      Retailers
      
   3. 
      Combination of Production and Marketing Specialists
      
4. 
   A large drop in price of one item causes only a small rise in demand for another item, they are?
   
   1. 
      Strong Complements
      
   2. 
      Weak Complements
      
   3. 
      Close Complements
      
5. 
   A general rule, the Labor’s Supply Curve is sloping upward from?
   
   1. 
      Left to Right
      
   2. 
      Right to Left
      
   3. 
      It doesn’t slope
      
6. 
   The antithesis to competition is?
   
   1. 
      Oligopoly
      
   2. 
      Price Discrimination
      
   3. 
      Monopoly
      
7. 
   People who have a need to not engage in doing anything except on how to secure their safety.
   
   1. 
      Physiological Need
      
   2. 
      Social Need
      
   3. 
      Deficient Need
      
8. 
   The MRP Curve shows?
   
   1. 
      The maximum supplied
      
   2. 
      Demand for labor should be
      
   3. 
      Increase in entrepreneurship
      
9. 
   The Government must approve?
   
   1. 
      Mergers and Acquisitions
      
   2. 
      Crony Capitalism
      
   3. 
      Barriers to Entry
      
10. 
    Instances where a number of product identifiers could be effective substitutes is?
    
    1. 
       Cross-category Consideration
       
    2. 
       Perfect Substitute
       
    3. 
       Close Substitute
       
11. 
    An asset consisting of the knowledge and skills held by a person that can be utilized by a company is?
    
    1. 
       Innovation
       
    2. 
       Resources Allocation
       
    3. 
       Human Capital
       
12. 
    Eliminating competition through political favoritism is?
    
    1. 
       Oligopoly
       
    2. 
       Crony Capitalism
       
    3. 
       Monopoly
       
13. 
    No private ownership can be found in a?
    
    1. 
       Command Economy
       
    2. 
       Laissez-faire
       
    3. 
       Mixed Economy
       
14. 
    The Average Product Curve will keep the same form except its maximum point will be at?
    
    1. 
       Higher output level
       
    2. 
       Lower output level
       
    3. 
       Same output level
       
15. 
    Energy consumption went down by 3% in Iowa and Minnesota by using what tactic?
    
    1. 
       Rebates
       
    2. 
       Day Light Savings
       
    3. 
       Emodocons
       
16. 
    A good that functions just the same as the good it is being compared to?
    
    1. 
       Cross-category Consideration
       
    2. 
       Perfect Substitute
       
    3. 
       Close Substitute
       
17. 
    A bias that makes it difficult for people to account for the manner in which differences in mental states affect the way that they and other people make decisions?
    
    1. 
       Need to Act Fast
       
    2. 
       What Should We Remember
       
    3. 
       Too Much Information
       
18. 
    Monopolies create Barriers to Entry to?
    
    1. 
       Create competition
       
    2. 
       Create revenue
       
    3. 
       Stifle competition
       
19. 
    The Practice of charging different consumers, different prices for exactly the same product?
    
    1. 
       Non-coercive Monopoly
       
    2. 
       Price Discrimination
       
    3. 
       Deregulation
       
20. 
    The tendency to overestimate the intensity or the duration of future emotions and states of feeling?
    
    1. 
       Not Enough Meaning
       
    2. 
       What Should We Remember
       
    3. 
       Too Much Information
       
21. 
    The managing of tangible assets is?
    
    1. 
       Projection
       
    2. 
       Resource Allocation
       
    3. 
       Distribution
       
22. 
    When companies acquire companies that produce the same good or service that is?
    
    1. 
       Vertical Integration
       
    2. 
       Horizontal Integration
       
    3. 
       Merger and Acquisition
       
23. 
    When income rises and cause a bigger percentage increase in demand of an item it is?
    
    1. 
       An Inferior Good
       
    2. 
       A Normal Good
       
    3. 
       A Luxury Good
       
24. 
    Wal-Mart has what kind of relationship with its suppliers?
    
    1. 
       Co-dependent
       
    2. 
       Transactional
       
    3. 
       Subservient
       
25. 
    What is emphasized in a Laissez-faire market?
    
    1. 
       Mass production
       
    2. 
       Government control
       
    3. 
       Individual choice
       
26. 
    If no participant is large enough to have the market price of a homogenous product?
    
    1. 
       Free Market
       
    2. 
       Competitive Market
       
    3. 
       Perfect Competition
       
27. 
    When a few firms control a particular market it is?
    
    1. 
       An Oligopoly
       
    2. 
       A Free Market
       
    3. 
       A Monopoly
       
28. 
    The Law Diminishing Marginal Return means that the Demand Labor Curve will eventually go?
    
    1. 
       Up
       
    2. 
       Down
       
    3. 
       Stay the same
       
29. 
    Governments use what to fight monopolies?
    
    1. 
       Crony Capitalism
       
    2. 
       Laissez-faire
       
    3. 
       Anti-trust laws
       
30. 
    A small fall in the price of one item cause a large rise in demand for another item, they are?
    
    1. 
       Strong Complements
       
    2. 
       Weak Complements
       
    3. 
       Close Complements
       
31. 
    The simpler the problem is to solve; the more time we spend solving it is part of what major category?
    
    1. 
       Need to Act Fast
       
    2. 
       Not Enough Meaning
       
    3. 
       Too Much Information
       
32. 
    When it is more cost effective to have one large producer rather than several smaller competing firms is a?
    
    1. 
       Oligopoly
       
    2. 
       Non-coercive Monopoly
       
    3. 
       Natural Monopoly
       
33. 
    The need to belong to a social organization is?
    
    1. 
       An Aesthetic Need
       
    2. 
       A Deficient Need
       
    3. 
       A Growth Need
       
34. 
    An inventor has exclusive rights to profit from a specific product with?
    
    1. 
       Anti-trust laws
       
    2. 
       Barriers of Entry
       
    3. 
       Patents
       
35. 
    When a company controls its Supply Chain?
    
    1. 
       Monopoly
       
    2. 
       Vertical Integration
       
    3. 
       Horizontal Integration
       
36. 
    When quantity supplied is not equal to the quantity demanded?
    
    1. 
       Surplus
       
    2. 
       Return on Investment
       
    3. 
       New Equilibrium
       
37. 
    When income rises and an item goes down in sales it is?
    
    1. 
       An Inferior Good
       
    2. 
       A Normal Good
       
    3. 
       A Luxury Good
       
38. 
    What is change in total product associated with the addition of one more unit of labor?
    
    1. 
       Marginal Product
       
    2. 
       Total Product
       
    3. 
       Average Product
       
39. 
    Economists want most monopolies to be?
    
    1. 
       Allowed
       
    2. 
       Prevented
       
    3. 
       Neither allow or prevent
       
40. 
    Products and Markets are constructed by?
    
    1. 
       Governments and Citizens
       
    2. 
       Suppliers and Retail
       
    3. 
       Buyers and Sellers
       
41. 
    The airline industry does price discrimination by?
    
    1. 
       When the ticket was purchased
       
    2. 
       Where the ticket was purchased
       
    3. 
       Where the ticket that was purchased is going to
       
42. 
    When a company has a large market through consumer preference?
    
    1. 
       Natural Monopoly
       
    2. 
       Non-coercive Monopoly
       
    3. 
       Oligopoly
       
43. 
    Stage 3 of the Law of Diminishing Returns additions to labor will?
    
    1. 
       Increase efficiency
       
    2. 
       Decrease efficiency
       
    3. 
       Maintain Efficiency
       
44. 
    The need to promote the efficacy of beautiful things?
    
    1. 
       Deficient Need
       
    2. 
       Self-Actualization
       
    3. 
       Aesthetic Need
       
45. 
    Focusing attention on recognition from others, on which level is that on Maslow’s Pyramid?
    
    1. 
       3^rd
       
    2. 
       4^th
       
    3. 
       5^th
       
46. 
    If a person has lower recall for events that happen right before or after a performance?
    
    1. 
       Need to Act Fast
       
    2. 
       Too Much Information
       
    3. 
       What Should We Remember
       
47. 
    The urgent need to acquire the relevant attitude in order to function is?
    
    1. 
       An Ego Need
       
    2. 
       An Aesthetic Need
       
    3. 
       A Growth Need
       
48. 
    The process of removing or reducing state statute?
    
    1. 
       Anti-trust laws
       
    2. 
       Deregulation
       
    3. 
       Patents
       
49. 
    If the government provides services to its citizens it is?
    
    1. 
       Wage
       
    2. 
       Social Welfare
       
    3. 
       Inheritance
       
50. 
    More than 1/3 global crop production is impacted by?
    
    1. 
       Consumers
       
    2. 
       Insect Pollinators
       
    3. 
       Governments
       
51. 
    Essay Question 1: Describe how are the concepts of Positive Economics and Normative Economics related to Hard Skills and Skills and how are they related to Labor and Labor Supply/Demand. Finally describe how would they come together if you were an owner of a business. (10 Points)
    

52. 
    Essay Question 2: Explain how Micro-level choices become Macro-level preferences and how does Abraham Maslow’s Pyramid help us to understand and make business decisions. (20 Points)
    

53. 
    Essay Question 3: Choose 1 of the 4 Categories of the Cognitive Bias Codex that best describes what are you the worst at overcoming. You should give multiple examples of why you belong in that category. (20 Points)
    

Page