A) The price level. B) Employment. C) The money supply. D) The value of money. A) The price level. B) Employment. C) The money supply. D) The value of money.

A) Increases the scarcity of resources. B) Makes a country more equitable. C) Allows a country to have a greater variety of products at a lower cost than if it tried to produce everything at home. D) Allows a country to avoid trade-offs. A) Increases the scarcity of resources. B) Makes a country more equitable. C) Allows a country to have a greater variety of products at a lower cost than if it tried to produce everything at home. D) Allows a country to avoid trade-offs.

Exam 1: What Is Economics

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Anneka is better at cleaning and Jurgen is better at cooking. It will take fewer hours to eat and clean if Jurgen specializes in cooking and Anneka specializes in cleaning than if they share the household duties evenly.

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(True/False)

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Question 1

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Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today?

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Whatever must be given up to obtain some item it its opportunity cost. Basically, this would be a person's second choice. The opportunity cost of a person attending college is the value of the best alternative use of that person's time, as well as the additional costs the person incurs by making the choice to attend college. For most students this would be the income the student gives up by not working plus the cost of tuition and books, and any other costs they incur by attending college that they would not incur if they chose not to attend college. A student's opportunity cost of coming to class was the value of the best opportunity the student gave up. (For most students, that seems to be sleep.)

Which of the following is not part of the opportunity cost of going on holiday? The money you:

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Question 3

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One trade off society faces is between efficiency and equality. Define each term. If the UK government redistributes income from the rich to the poor, explain how this action affects equality as well as efficiency in the economy.

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Question 4

With the understanding that people respond to incentives, outline the possible outcome for teachers if school holidays are reduced.

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Question 5

Productivity is defined as the:

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Question 6

Suppose that Rebecca throws her cola bottle out of her car window and it smashes on the road. Jim drives over the broken glass and gets a flat tyre. Rebecca's cola consumption has resulted in:

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Question 7

Productivity can be increased by

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Question 8

Both the production of goods and services and the unemployment rate are used to measure:

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Question 9

High and persistent inflation is caused by excessive growth in the quantity of money in the economy.

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Question 10

Which of the following activities is most likely to produce an externality? A student:

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Question 11

Inflation reduces:

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Question 12

The government has just passed a law requiring that all residents earn the same annual income regardless of work effort. This law is likely to:

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Question 13

How does the study of economics depend upon the phenomenon of scarcity?

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Question 14

A nation's standard of living can be increased by:

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Question 15

There are three questions that any economy has to face: What goods and services should be produced? How should these goods and services be produced? ___________________?

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Question 16

Rational people act only when the marginal benefit of the action exceeds the marginal cost.

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Question 17

Government can improve market outcomes by:

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Question 18

Foreign trade:

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Question 19

An increase in the price of beef provides information which:

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Question 20

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Exam 1: What Is Economics

Anneka is better at cleaning and Jurgen is better at cooking. It will take fewer hours to eat and clean if Jurgen specializes in cooking and Anneka specializes in cleaning than if they share the household duties evenly.

Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today?

Which of the following is not part of the opportunity cost of going on holiday? The money you:

One trade off society faces is between efficiency and equality. Define each term. If the UK government redistributes income from the rich to the poor, explain how this action affects equality as well as efficiency in the economy.

With the understanding that people respond to incentives, outline the possible outcome for teachers if school holidays are reduced.

Productivity is defined as the:

Suppose that Rebecca throws her cola bottle out of her car window and it smashes on the road. Jim drives over the broken glass and gets a flat tyre. Rebecca's cola consumption has resulted in:

Productivity can be increased by

Both the production of goods and services and the unemployment rate are used to measure:

High and persistent inflation is caused by excessive growth in the quantity of money in the economy.

Which of the following activities is most likely to produce an externality? A student:

Inflation reduces:

The government has just passed a law requiring that all residents earn the same annual income regardless of work effort. This law is likely to:

How does the study of economics depend upon the phenomenon of scarcity?

A nation's standard of living can be increased by:

There are three questions that any economy has to face: What goods and services should be produced? How should these goods and services be produced? ___________________?

Rational people act only when the marginal benefit of the action exceeds the marginal cost.

Government can improve market outcomes by:

Foreign trade:

An increase in the price of beef provides information which:

Thinking Like an Economist

The Market Forces of Supply and Demand

Elasticity and Its Applications

Background to Demand: Consumer Choices

Background to Supply: Firms in Competitive Markets

Consumers, Producers and the Efficiency of Markets

Supply, Demand and Government Policies

The Tax System

Public Goods, Common Resources and Merit Goods

Market Failure and Externalities

Information and Behavioural Economics

Firms Production Decisions

Market Structures I: Monopoly

Market Structures Ii: Monopolistic Competition

Market Structures Iii: Oligopoly

The Economics of Factor Markets

Income Inequality and Poverty

Interdependence and the Gains From Trade

Measuring a Nations Well-Being

Measuring the Cost of Living

Production and Growth

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

Issues in Financial Markets

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Business Cycles

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Supply-Side Policies

Common Currency Areas and European Monetary Union

The Financial Crisis and Sovereign Debt

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