QEP Post Math Part 2 — Answers Questions 1-15 on a separate 101864 Par L par score QEP Post Math Part 2 — Answers Questions 1-15 on a separate 101864 Par L par Name:___________________________________ Banner:__________________________________ 1) Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice, A) you have made a positive statement. B) you have used the ceteris paribus assumption. C) you must have considered the social interest. D) you must ignore the problem of scarcity. E) you considered the marginal cost and marginal benefit of your choice. 2) The expenditure approach to measuring GDP is done by using data on only A) consumption expenditure and investment. B) wages, rent, interest, and profit. C) consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services. D) consumption expenditure. E) consumption expenditure, investment, and government expenditures. 3) The largest expenditure category in the United States is A) net exports of goods and services. B) investment. C) wages. D) consumption expenditure. E) government expenditure on goods and services. 4) Economic growth is a sustained expansion of production possibilities, as measured by the increase in ________ over time. A) population B) the price level C) inflation D) employment E) real GDP 5) The "value of money" A) is the quantity of goods and services that a unit of money can buy. B) increases during inflationary periods. C) is directly related to the price level. D) increases during economic expansions. E) is determined by Fed regulations. 6) If the quantity of money supplied ________ the quantity demanded, in the long run the value of money ________. A) exceeds; falls as people spend their surplus money B) is less than; does not change unless the Fed increases the money supply C) equals; equals zero D) is less than; falls as people spend their surplus money E) exceeds; rises as people buy bonds 7) Inflation is a tax because as the government ________ the quantity of money, the price level ________, and the purchasing power of households' money ________. A) decreases; rises; decreases B) decreases; falls; decreases C) increases; rises; decreases D) does not change; rises; increases E) increases; rises; increases Figure 3-1 8) Refer to Figure 3-1. If the product represented is an inferior good, an increase in income would be represented by a movement from A) B to A. B) A to B. C) D2 to D1. D) D1 to D2. 9) Refer to Figure 3-1. A decrease in the price of the product would be represented by a movement from A) D2 to D1. B) B to A. C) A to B. D) D1 to D2. 10) Suppose that when the price of raspberries increases, Lonnie increases his ...

1. QEP Post Math Part 2 — Answers Questions 1-15 on a separate
101864 Par L par score
QEP Post Math Part 2 — Answers Questions 1-15 on a separate
101864 Par L par
Name:___________________________________
Banner:__________________________________
1) Suppose you decide to attend summer school and that this is
considered a rational choice. When making this
choice,
A) you have made a positive statement.
B) you have used the ceteris paribus assumption.
C) you must have considered the social interest.
D) you must ignore the problem of scarcity.
E) you considered the marginal cost and marginal benefit of
your choice.
2) The expenditure approach to measuring GDP is done by
using data on only

2. A) consumption expenditure and investment.
B) wages, rent, interest, and profit.
C) consumption expenditure, investment, government
expenditure on goods and services, and net exports
of goods and services.
D) consumption expenditure.
E) consumption expenditure, investment, and government
expenditures.
3) The largest expenditure category in the United States is
A) net exports of goods and services.
B) investment.
C) wages.
D) consumption expenditure.
E) government expenditure on goods and services.
4) Economic growth is a sustained expansion of production
possibilities, as measured by the increase in
________ over time.
A) population

3. B) the price level
C) inflation
D) employment
E) real GDP
5) The "value of money"
A) is the quantity of goods and services that a unit of money
can buy.
B) increases during inflationary periods.
C) is directly related to the price level.
D) increases during economic expansions.
E) is determined by Fed regulations.
6) If the quantity of money supplied ________ the quantity
demanded, in the long run the value of money
________.
A) exceeds; falls as people spend their surplus money
B) is less than; does not change unless the Fed increases the
money supply
C) equals; equals zero
D) is less than; falls as people spend their surplus money

4. E) exceeds; rises as people buy bonds
7) Inflation is a tax because as the government ________ the
quantity of money, the price level ________, and
the purchasing power of households' money ________.
A) decreases; rises; decreases
B) decreases; falls; decreases
C) increases; rises; decreases
D) does not change; rises; increases
E) increases; rises; increases
Figure 3-1
8) Refer to Figure 3-1. If the product represented is an inferior
good, an increase in income would be
represented by a movement from
A) B to A. B) A to B. C) D2 to D1. D) D1 to D2.
9) Refer to Figure 3-1. A decrease in the price of the product

5. would be represented by a movement from
A) D2 to D1. B) B to A. C) A to B. D) D1 to D2.
10) Suppose that when the price of raspberries increases,
Lonnie increases his purchases of papayas. To Lonnie,
A) raspberries and papayas are normal goods. B) raspberries
and papayas are complements.
C) raspberries and papayas are substitutes. D) raspberries and
papayas are inferior goods.
11) During the recession:
A) casual dining restaurants like Olive Garden and Red Lobster
experienced increased demand and
fast-food restaurants like McDonald's and Subway experienced
decreased demand.
B) both casual dining restaurants like Olive Garden and Red
Lobster and fast-food restaurants like
McDonald's and Subway experienced decreased demand.
C) both casual dining restaurants like Olive Garden and Red
Lobster and fast-food restaurants like
McDonald's and Subway experienced increased demand.
D) casual dining restaurants like Olive Garden and Red Lobster
experienced decreased demand and

6. fast-food restaurants like McDonald's and Subway experienced
increased demand.
Figure 3-2
12) Refer to Figure 3-2. An increase in price of inputs would
be represented by a movement from
A) S2 to S1. B) A to B. C) B to A. D) S1 to S2.
13) Refer to Figure 3-2. A decrease in the price of the product
would be represented by a movement from
A) A to B. B) S1 to S2. C) S2 to S1. D) B to A.
Figure 3-5

7. 14) Refer to Figure 3-5. At a price of $15,
A) there would be a surplus of 6 units. B) there would be a
surplus of 4 units.
C) there would be a shortage of 4 units. D) there would be a
shortage of 2 units.
15) Let D= demand, S = supply, P = equilibrium price, Q=
equilibrium quantity. What happens in the market
for tropical hardwood trees if the governments restrict the
amount of forest lands that can be logged?
A) D and S decrease, P and Q increase
B) D decreases, S no change, P and Q decrease
C) S decreases, D no change, P increases, Q decreases
D) D no change, S decreases, P increases, Q increases
Questions
1. How tall is a building that casts a 67 ft. shadow when the
angle of elevation of the sun is 34 degrees? (Simply, round to
nearest hundred.)
2. The headlights of an automobile are set such that the beam
drops 3.00 inches for each 20.0 ft in front of the car. What is
the angle between the beam and the road? (Round to one

8. decimal place as needed)
3. Recently about 70 metric tons of soil were removed from
under a leaning tower and the angle the tower made with the
ground was by about 0.5 degrees. Before that a point near the
top of the tower was 49.7 m from a point at the base (measured
along the tower) and this point was directly above a point on the
ground 4.31 m from the same base point. See the given figure.
How much did the point on the ground move toward the base
point?
4. Solve the right triangle
B= 70.47, b=1.098
A= a= c=
5) Solve the right triangle with the given parts
B=21.8 c=24.2
A= a= b=
6) Find the function value. Round to four decimal places cos
36.03
7) A surveyor wishes to find the height of a cliff. Use the figure
to determine how high was the cliff?
Name: _____________________ Banner:
______________________________
QEP Post Math Part I – Answers Questions 1-20 on a separate
101864 Par L par score form
1. Resources are

9. A) scarce for households but plentiful for economies.
B) plentiful for households but scarce for economies.
C) scarce for households and scarce for economies.
D) plentiful for households and plentiful for economies.
2. If variable X increases as variable Y deceases, then X
and Y are
A) directly related.
B) Independent
C) positively related
D) inversely related.
3. If people want more cars than there are cars available,
then
A) cars are scarce.
B) there is a surplus of cars.
C) there is a decreased supply of cars.
D)none of the above
4. In the equation below, the value of X must be?

10. 12 X
________ = ________
$1.20 $ .50
A) 20
B) 10
C) 5
D) 15
5. Below is a table of the prices of quarts of milk from
2000 to 2001, and from 2002 to 2003.
Price
Price
2000 $ .80 2002
$1.00
2001 1.00 2003
.80

11. In this table, the price of a quart of milk changed from
2000 to 2001 by _________ %, and by
_________% from 2002 to 2003?
A) + 25%, -25%
B) +25%, -20%
C) +25%, -15%
D) +15%, -15%
6. Refer to the supply and demand graph above. A price of $6
in the market will result in a
A) shortage of 10 units.
B) surplus of 10 units.
C) surplus of 5 units.
D) shortage of 5 units.
7. Again, refer to the supply and demand graph above. A price
of $2 in the market will result in a
A) shortage of 10 units.
B) surplus of 10 units.
C) surplus of 5 units.

12. D) shortage of 5 units
D
P
ri
ce
(
d
o
ll
ar
s)
S
5 10 15 20 25 Quantity
2
4
6
8
8. In economics, the Herfindahl Index measures the degree of

13. concentration in an industry. It is computed as the
sum of the squares of the market shares of all the firms in the
industry. If an industry has a total of five firms each
with the following market shares, what is the Herfindahl Index
for this industry?
Firm 1 Firm 2 Firm 3
Firm 4 Firm 5
Market Share 20% 30% 20%
20% 10%
A) 2200
B) 100
C) 2000
D) 1000
9. Which of the following is correct?
A) The word economy comes from the Greek word for “rational
thinker.”
B) Economists study the management of scarce resources.
C) Because economists believe that people pursue their best
interests, they are not
interested in how people interact.
D) All of the above are correct.

14. 10. The adage, "There is no such thing as a free lunch," means
A) even people on welfare have to pay for food.
B) the cost of living is always increasing.
C) people face tradeoffs.
D) all costs are included in the price of a product.
11. Which of the following is true?
A) Efficiency refers to the size of the economic pie; equality
refers to how the pie is
divided.
B) Government policies usually improve upon both equality and
efficiency.
C) As long as the economic pie continually gets larger, no one
will have to go hungry.
D) Efficiency and equality can both be achieved if the economic
pie is cut into equal
pieces.
12. It costs a company $50,000 to produce 5000 beach towels.
The company’s cost will be $50,009 if

15. it produces an additional beach towel. If the company produces
5,000 beach towels then:
A) its average cost is greater than its marginal cost.
B) its average cost and its marginal cost are equal.
C) its average cost is less than its marginal cost.
D) there is insufficient information to compute average and
marginal costs.
13. Suppose your management professor has been offered a
corporate job with a 30 percent pay
increase. He has decided to take the job. For him, the marginal
A) cost of leaving was greater than the marginal benefit.
B) benefit of leaving was greater than the marginal cost.
C) benefit of teaching was greater than the marginal cost.
D) All of the above are correct.
Table: Production Possibilities for Library Land
Books Magazines
400 0
300 200

16. 200 350
100 450
0 500
14. Refer to the Production Possibilities Table above. What is
the opportunity cost to Library Land of
increasing the production of books from 200 to 300?
A) 100 magazines
B) 150 magazines
C) 200 magazines
D) 350 magazines
Figure 1.1
15. In Figure 1.1 above, there is a _________________
relationship between the daily temperature
and the number of gallons of ice cream purchased.
A) a negative
B) an inverse
C) a positive

17. D) either a negative or a positive
Figure 1.2
16. In the figure above, the slope of the line between Point A
and B is:
A) 0.4
B) 1.2
C) 2.5
D) indeterminate from this information
Figure 1.3
17. In the figure above, at Point A, what is the value of Y?
A) 10
B) 12
C) 15
D) indeterminate from this information

18. Figure 1.4
18. In the figure above, which of the curves or lines has a slope
that is first positive and then negative?
A) Panel A B) Panel B C) Panel C D) Panel D
19. If the slope of a straight line is 4 and if X (the variable on
the horizontal axis) increases by 12,
then Y (the variable on the vertical axis will:
A) decrease by 3.
B) increase by 48.
C) increase by 3.
D) decrease by 0.33.
20. Which of the following is the best definition of economics?
A) The study of how business firms decide what inputs to hire
and what outputs to produce.
B) The study of how individuals and societies choose to use the
scarce resources that nature and
previous generations have provided.

19. C) The study of how consumer spend their income.
D) The study of how the federal government allocates tax
dollars.