Question 1

In 2012,Peelville consumed 30,000 bananas.In 2013,banana consumption rose to 35,000.Calculate the percentage change in banana consumption.

Accepted Answer

A) 11.66% 
B) 14.28% 
C) 16.67% 
D) 22.25% 
A) 11.66% 
B) 14.28% 
C) 16.67% 
D) 22.25%

Question 2

Consider the following economic agents:
a.the government
b.consumers
c.producers
Who,in a market economy,decides what goods and services will be produced with the scarce resources available in that economy?

Accepted Answer

A) the government 
B) producers 
C) consumers 
D) consumers and producers 
E) the government, consumers and producers 
A) the government 
B) producers 
C) consumers 
D) consumers and producers 
E) the government, consumers and producers

Question 3

What is an economic model?

Accepted Answer

An economic model is a simplif

Question 4

The government makes all economic decisions in a market economy.

Accepted Answer

A) True 
 B)False

Question 5

Economic models

Accepted Answer

A) make no assumptions in order to remain as accurate as possible. 
B) are simplified versions of reality. 
C) can not be used to analyze real-world issues. 
D) magnify the complexity of economic issues in order to provide useful data. 
A) make no assumptions in order to remain as accurate as possible. 
B) are simplified versions of reality. 
C) can not be used to analyze real-world issues. 
D) magnify the complexity of economic issues in order to provide useful data.

Question 6

How are the fundamental economic decisions determined in China?

Accepted Answer

A) Individuals, firms, and the government interact in a market to make these economic decisions. 
B) These decisions are made by the country's elders who have had much experience in answering these questions. 
C) The government decides because China is a centrally planned economy. 
D) The United Nations decides because China is a developing economy. 
A) Individuals, firms, and the government interact in a market to make these economic decisions. 
B) These decisions are made by the country's elders who have had much experience in answering these questions. 
C) The government decides because China is a centrally planned economy. 
D) The United Nations decides because China is a developing economy.

Question 7

If a graph has a line that shows the amount of outsourcing in the last ten years,it is known as

Accepted Answer

A) a pie chart. 
B) a time-series graph. 
C) a demand curve for outsourcing. 
D) a supply curve of outsourcing. 
A) a pie chart. 
B) a time-series graph. 
C) a demand curve for outsourcing. 
D) a supply curve of outsourcing.

Question 8

What is the difference between economic efficiency and equity?

Accepted Answer

Economic efficiency is concerned with ma

Question 9

The processes used to produce goods and services describes

Accepted Answer

A) innovation. 
B) entrepreneurship. 
C) technology. 
D) capital. 
A) innovation. 
B) entrepreneurship. 
C) technology. 
D) capital.

Question 10

When every good or service is produced up to the point where the last unit provides ________,allocative efficiency occurs.

Accepted Answer

A) a marginal benefit to society equal to the marginal cost of producing it 
B) a marginal benefit to society greater than the marginal cost of producing it 
C) a marginal benefit to society less than the marginal cost of producing it 
D) a marginal benefit to society equal to zero 
A) a marginal benefit to society equal to the marginal cost of producing it 
B) a marginal benefit to society greater than the marginal cost of producing it 
C) a marginal benefit to society less than the marginal cost of producing it 
D) a marginal benefit to society equal to zero

Question 11

In economics,activities done for others,such as providing house cleaning or dental work,are referred to as

Accepted Answer

A) technology. 
B) physical capital. 
C) services. 
D) goods. 
A) technology. 
B) physical capital. 
C) services. 
D) goods.

Question 12

The decision about what goods and services will be produced made in a centrally-planned economy is made by

Accepted Answer

A) lawmakers in the government deciding on what will be produced. 
B) workers deciding to produce only what the boss says must be produced. 
C) producers deciding what society wants most. 
D) consumers and firms choosing which goods and services to buy or produce. 
E) consumers dictating to firms what they need most. 
A) lawmakers in the government deciding on what will be produced. 
B) workers deciding to produce only what the boss says must be produced. 
C) producers deciding what society wants most. 
D) consumers and firms choosing which goods and services to buy or produce. 
E) consumers dictating to firms what they need most.

Question 13

Mr.Peabody chooses to invest in companies that produce goods and services at the lowest possible cost.Mr.Peabody is investing in companies that are

Accepted Answer

A) allocatively efficient. 
B) productively efficient. 
C) guaranteed to make a profit. 
D) all of the above 
A) allocatively efficient. 
B) productively efficient. 
C) guaranteed to make a profit. 
D) all of the above

Question 14

The term "market" in economics refers to

Accepted Answer

A) a place where money changes hands. 
B) a legal institution where exchange can take place. 
C) a group of buyers and sellers of a product and the arrangement by which they come together to trade. 
D) an organization which sells goods and services. 
A) a place where money changes hands. 
B) a legal institution where exchange can take place. 
C) a group of buyers and sellers of a product and the arrangement by which they come together to trade. 
D) an organization which sells goods and services.

Question 15

The Coffee Nook,a small cafe near campus,sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each.What is the opportunity cost of buying a Russian tea cake?

Accepted Answer

A) 2 1/2 cappuccinos 
B) 2/5 of a cappuccino 
C) $2.50 
D) $1.00 
A) 2 1/2 cappuccinos 
B) 2/5 of a cappuccino 
C) $2.50 
D) $1.00

Question 16

How are the fundamental economic questions answered in a market economy?

Accepted Answer

A) The government alone decides the answers. 
B) Individuals, firms, and the government interact in markets to decide the answers to these questions. 
C) Households and firms interact in markets to decide the answers to these questions. 
D) Large corporations alone decide the answers. 
A) The government alone decides the answers. 
B) Individuals, firms, and the government interact in markets to decide the answers to these questions. 
C) Households and firms interact in markets to decide the answers to these questions. 
D) Large corporations alone decide the answers.

Question 17

If the price of milk was $2.50 a gallon and it is now $3.25 a gallon,what is the percentage change in price?

Accepted Answer

A) 13 percent 
B) 30 percent 
C) 75 percent 
D) 77 percent 
A) 13 percent 
B) 30 percent 
C) 75 percent 
D) 77 percent

Question 18

Scenario 1-1
Suppose a cell phone manufacturer currently sells 20,000 cell phones per week and makes a profit of $5,000 per week.A manager at the plant observes, "Although the last 3,000 cell phones we produced and sold increased our revenue by $6,000 and our costs by $6,700, we are still making an overall profit of $5,000 per week so I think we're on the right track.We are producing the optimal number of cell phones."
-Refer to Scenario 1-1.Had the firm not produced and sold the last 3,000 cell phones,would its profit be higher or lower,and if so by how much?

Accepted Answer

A) Its profit will be $6,700 higher. 
B) Its profit will be $700 higher. 
C) Its profit will be $700 lower. 
D) Its profit will be $6,000 lower. 
A) Its profit will be $6,700 higher. 
B) Its profit will be $700 higher. 
C) Its profit will be $700 lower. 
D) Its profit will be $6,000 lower.

Question 19

Voluntary exchange between buyers and sellers generates ________ in a market economy.

Accepted Answer

A) scarcity 
B) allocative efficiency 
C) productive efficiency 
D) equity 
A) scarcity 
B) allocative efficiency 
C) productive efficiency 
D) equity

Question 20

What are the five steps by which economists arrive at a useful economic model?

Accepted Answer

1.Decide on the assumptions to use in de

In 2012,Peelville consumed 30,000 bananas.In 2013,banana consumption rose to 35,000.Calculate the percentage change in banana consumption.

Consider the following economic agents: a.the government b.consumers c.producers Who,in a market economy,decides what goods and services will be produced with the scarce resources available in that economy?

What is an economic model?

The government makes all economic decisions in a market economy.

Economic models

How are the fundamental economic decisions determined in China?

If a graph has a line that shows the amount of outsourcing in the last ten years,it is known as

What is the difference between economic efficiency and equity?

The processes used to produce goods and services describes

When every good or service is produced up to the point where the last unit provides ________,allocative efficiency occurs.

In economics,activities done for others,such as providing house cleaning or dental work,are referred to as

The decision about what goods and services will be produced made in a centrally-planned economy is made by

Mr.Peabody chooses to invest in companies that produce goods and services at the lowest possible cost.Mr.Peabody is investing in companies that are

The term "market" in economics refers to

The Coffee Nook,a small cafe near campus,sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each.What is the opportunity cost of buying a Russian tea cake?

How are the fundamental economic questions answered in a market economy?

If the price of milk was $2.50 a gallon and it is now $3.25 a gallon,what is the percentage change in price?

Voluntary exchange between buyers and sellers generates ________ in a market economy.

What are the five steps by which economists arrive at a useful economic model?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 1: Economics: Foundations and Models

In 2012,Peelville consumed 30,000 bananas.In 2013,banana consumption rose to 35,000.Calculate the percentage change in banana consumption.

Consider the following economic agents: a.the government b.consumers c.producers Who,in a market economy,decides what goods and services will be produced with the scarce resources available in that economy?

What is an economic model?

The government makes all economic decisions in a market economy.

Economic models

How are the fundamental economic decisions determined in China?

If a graph has a line that shows the amount of outsourcing in the last ten years,it is known as

What is the difference between economic efficiency and equity?

The processes used to produce goods and services describes

When every good or service is produced up to the point where the last unit provides ________,allocative efficiency occurs.

In economics,activities done for others,such as providing house cleaning or dental work,are referred to as

The decision about what goods and services will be produced made in a centrally-planned economy is made by

Mr.Peabody chooses to invest in companies that produce goods and services at the lowest possible cost.Mr.Peabody is investing in companies that are

The term "market" in economics refers to

The Coffee Nook,a small cafe near campus,sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each.What is the opportunity cost of buying a Russian tea cake?

How are the fundamental economic questions answered in a market economy?

If the price of milk was $2.50 a gallon and it is now $3.25 a gallon,what is the percentage change in price?

Voluntary exchange between buyers and sellers generates ________ in a market economy.

What are the five steps by which economists arrive at a useful economic model?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters