Columbia Basin College

ECON 201

Exam 2

1)Economics use graphs because:

2. Flu vaccination shots provide external benefits. Thus:
3. If a 1% increase in the price of gummy bears causes gummy bear sales to decline by 0.4%, then the price elasticity of demand is:
4. If a pharmaceutical company knows that one of its products has a dangerous side effect but does not disclose that to its customers, then the market for that product is likely to fail due to:
5. If a price ceiling is set above the market price, it is:
6. If a price floor is set below the equilibrium price in a market:
7. If a transaction imposes external costs, then:
8. If you plot temperature on the y axis and world carbon emissions on the x axis, you have created a:
9. In economic markets, what signals information between buyers and sellers?
10. In the study of economics, the goals of efficiency and equity are often: