Question 1

Which of the following statements would show that veggie burgers are a substitute for regular hamburgers?

Accepted Answer

A) If you calculate the income elasticity and get a negative number 
B) If you calculate the income elasticity and get a decimal less than one 
C) If you calculate the cross-price elasticity and get zero 
D) If you calculate the cross-price elasticity and get a positive number 
A) If you calculate the income elasticity and get a negative number 
B) If you calculate the income elasticity and get a decimal less than one 
C) If you calculate the cross-price elasticity and get zero 
D) If you calculate the cross-price elasticity and get a positive number D

Question 2

Which of the following refers to the graphical method of illustrating the complicated economic relationship between consumption and spending?

Accepted Answer

A) The scarcity and demand curve 
B) The supply and demand paradigm 
C) The market equilibrium balance 
D) The production possibilities curve 
A) The scarcity and demand curve 
B) The supply and demand paradigm 
C) The market equilibrium balance 
D) The production possibilities curve D

Question 3

The luxury clothing market is known to be especially vulnerable to economic recessions as people curtail spending on expensive non-essentials. Some luxury clothing retailers resort to selling these same goods at outlet markets in an effort to lure customers who are unwilling or unable to pay. This is an example of:

Accepted Answer

A) First degree price discrimination 
B) Price stickiness 
C) Second degree price discrimination 
D) Demand-pull inflation 
A) First degree price discrimination 
B) Price stickiness 
C) Second degree price discrimination 
D) Demand-pull inflation A

Question 4

Why does the PPC slope downward?

Accepted Answer

A) Increasing opportunity costs 
B) Scarcity 
C) The PPC does not slope downward 
D) None of the above 
A) Increasing opportunity costs 
B) Scarcity 
C) The PPC does not slope downward 
D) None of the above

Question 5

What is the type of good for which there is actually more demand as a person's income rises?

Accepted Answer

A) Private good 
B) Public good 
C) Substitute good 
D) Normal good 
A) Private good 
B) Public good 
C) Substitute good 
D) Normal good

Question 6

What happens if the demand for oranges increases, but the supply of oranges decreases?

Accepted Answer

A) The price and quantity will both increase 
B) The price and quantity will both decrease 
C) The price will increase, but the quantity will decrease 
D) The price will increase, but it cannot be determined what will happen to the quantity 
A) The price and quantity will both increase 
B) The price and quantity will both decrease 
C) The price will increase, but the quantity will decrease 
D) The price will increase, but it cannot be determined what will happen to the quantity

Question 7

What are goods that are used together called?

Accepted Answer

A) Substitutes 
B) Complements 
C) Pairs 
D) Supplies 
A) Substitutes 
B) Complements 
C) Pairs 
D) Supplies

Question 8

What term refers to the contribution that using one more unit of a particular factor makes to a business's bottom line?

Accepted Answer

A) Marginal utility 
B) Marginal derived demand 
C) Marginal revenue product 
D) Resource quantity 
A) Marginal utility 
B) Marginal derived demand 
C) Marginal revenue product 
D) Resource quantity

Question 9

Fae is a nutritionist who typically charges her clients $150 per hour of nutritional consulting. Fae leaves her office early to buy her children some Christmas presents. Fae spends three hours at the mall and leaves with two stuffed animals that cost $25 each. How much did the gifts actually cost Fae?

Accepted Answer

A) $50 
B) $450 
C) $500 
D) $$200 
A) $50 
B) $450 
C) $500 
D) $$200

Question 10

Which of the following economic questions must any society answer, regardless of its location, size, or political form?
A)Who will consume the services and goods produced?
B)What goods will be produced?
C)What methods of producing goods are appropriate for our society?
D)All of the above

Accepted Answer

All of the above.
Key Takeaway: Any soci

Question 11

The loanable funds _______ brings savers and borrowers together to finance expenditures.

Accepted Answer

A) Process 
B) Market 
C) Portfolio 
D) Legislation 
A) Process 
B) Market 
C) Portfolio 
D) Legislation

Question 12

Which of the following is the correct term used for an artificial cap on the price of a good?

Accepted Answer

A) Price floor 
B) Price ceiling 
C) Maximum input 
D) Minimum wage 
A) Price floor 
B) Price ceiling 
C) Maximum input 
D) Minimum wage

Question 13

Which of the following is the correct term for the differences in wage levels that occur from job characteristics?

Accepted Answer

A) Human capital 
B) Productivity factor 
C) Compensating differentials 
D) Equity 
A) Human capital 
B) Productivity factor 
C) Compensating differentials 
D) Equity

Question 14

___________ simply means the level of responsiveness to various changes within the economic system.

Accepted Answer

A) Proportion 
B) Supply 
C) Elasticity 
D) Demand 
A) Proportion 
B) Supply 
C) Elasticity 
D) Demand

Question 15

If a business is operating under perfect competition, which of the following calculations would be used to determine the marginal revenue product?

Accepted Answer

A) MRP = MP x Q 
B) MRP = MP/P 
C) MRP = MP x P 
D) MRP = MP P 
A) MRP = MP x Q 
B) MRP = MP/P 
C) MRP = MP x P 
D) MRP = MP P

Question 16

Human capital consists of workers' skills and education.

Accepted Answer

A) True 
 B)False

Question 17

Coffee has increased in price from $10 to $15 per pound. This change has lead to a decrease in the quantity of coffee demanded at a particular store from 75 to 50 pounds. Which of the following is true about the demand for coffee?

Accepted Answer

A) Demand for coffee is perfectly elastic 
B) Demand for coffee has dropped to zero 
C) Demand for coffee has reached equilibrium 
D) Demand for coffee is inelastic 
A) Demand for coffee is perfectly elastic 
B) Demand for coffee has dropped to zero 
C) Demand for coffee has reached equilibrium 
D) Demand for coffee is inelastic

Question 18

Economic pundits are predicting that local construction markets will most likely experience an increase in steel prices of nearly 20% in a coming 48 months. This is due to a shortage of available steel which will not be enough for all the needs of projected construction companies. What is this an example of?

Accepted Answer

A) Uncontrolled greed 
B) Under-planning 
C) Scarcity 
D) Over-consumption 
A) Uncontrolled greed 
B) Under-planning 
C) Scarcity 
D) Over-consumption

Question 19

From an economist's standpoint, which of the following would be a resource?

Accepted Answer

A) Labor 
B) Entrepreneurship 
C) Land 
D) All of the above 
A) Labor 
B) Entrepreneurship 
C) Land 
D) All of the above

Question 20

Johnson & Johnson managers have shifted production from an aloe vera based hand cream to an oat based one. The cost of the shift has increased by 12%. What is this phenomenon referred to as?

Accepted Answer

A) Law of increasing costs 
B) Law of decreasing sales 
C) Product diversification 
D) Product integration 
A) Law of increasing costs 
B) Law of decreasing sales 
C) Product diversification 
D) Product integration

Exam 31: (AP) Macroeconomics: Part B

Which of the following statements would show that veggie burgers are a substitute for regular hamburgers?

Which of the following refers to the graphical method of illustrating the complicated economic relationship between consumption and spending?

Why does the PPC slope downward?

What is the type of good for which there is actually more demand as a person's income rises?

What happens if the demand for oranges increases, but the supply of oranges decreases?

What are goods that are used together called?

What term refers to the contribution that using one more unit of a particular factor makes to a business's bottom line?

Which of the following economic questions must any society answer, regardless of its location, size, or political form? A)Who will consume the services and goods produced? B)What goods will be produced? C)What methods of producing goods are appropriate for our society? D)All of the above

The loanable funds _______ brings savers and borrowers together to finance expenditures.

Which of the following is the correct term used for an artificial cap on the price of a good?

Which of the following is the correct term for the differences in wage levels that occur from job characteristics?

___________ simply means the level of responsiveness to various changes within the economic system.

If a business is operating under perfect competition, which of the following calculations would be used to determine the marginal revenue product?

Human capital consists of workers' skills and education.

Coffee has increased in price from $10 to $15 per pound. This change has lead to a decrease in the quantity of coffee demanded at a particular store from 75 to 50 pounds. Which of the following is true about the demand for coffee?

From an economist's standpoint, which of the following would be a resource?

Johnson & Johnson managers have shifted production from an aloe vera based hand cream to an oat based one. The cost of the shift has increased by 12%. What is this phenomenon referred to as?

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