Question 1

The machines that workers have to work with are considered

Accepted Answer

A) human capital. 
B) physical capital. 
C) entrepreneurship. 
D) financial capital. 
A) human capital. 
B) physical capital. 
C) entrepreneurship. 
D) financial capital.

Question 2

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 3

The prime minister of the tiny island nation of Wowza has proposed that the speed limit on its only highway be reduced by 10 miles per hour on Thursdays.Enacting this proposal would be optimal

Accepted Answer

A) only if the marginal cost of reducing the speed limit falls to zero. 
B) as long as the marginal benefit of reducing the speed limit is just equal to or greater than the marginal cost of reducing the speed limit. 
C) as long as the marginal cost does not rise. 
D) until the marginal benefit of this action is maximized. 
A) only if the marginal cost of reducing the speed limit falls to zero. 
B) as long as the marginal benefit of reducing the speed limit is just equal to or greater than the marginal cost of reducing the speed limit. 
C) as long as the marginal cost does not rise. 
D) until the marginal benefit of this action is maximized.

Question 4

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 5

How are most fundamental economic decisions now 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 6

Article Summary
In a January, 2017 report, the World Economic Forum stated that the growing income gap has become one of the biggest threats to the global economy and cannot be remedied solely by higher economic growth. Although income inequality has fallen over the past 30 years on a global level, in high-income countries like the United States and the United Kingdom, the top 1% of income earners have benefitted disproportionately from economic growth. This has led a growing belief that the traditional model for economic growth does not result in a population-wide increase in income. According to the report, "The growing mood of anti-establishment populism suggests we may have passed the stage where [reviving economic growth] alone would remedy fractures in society: reforming market capitalism must also be added to the agenda." 
Source: Lauren Gensler, "Rising Income Inequality Is Throwing The Future Of Capitalism Into Question, Says World Economic Forum," Forbes, January 11, 2017.
-Refer to the Article Summary.The article discusses income inequality and how economic growth alone is no longer resulting in a more equitable distribution of income.What is meant by a more equitable distribution of income?

Accepted Answer

A) a more allocatively efficient distribution of income 
B) a more productively efficient distribution of income 
C) a more fair distribution of income 
D) income distributed based on wealth levels 
A) a more allocatively efficient distribution of income 
B) a more productively efficient distribution of income 
C) a more fair distribution of income 
D) income distributed based on wealth levels

Question 7

Which of the following is part of an economic model?

Accepted Answer

A) norms 
B) hypotheses 
C) opinions 
D) preferences of economic agents 
A) norms 
B) hypotheses 
C) opinions 
D) preferences of economic agents

Question 8

Define productive efficiency.Does productive efficiency imply allocative efficiency? Explain.

Accepted Answer

Productive efficiency is an efficiency c

Question 9

Which of the following statements about the economic decisions consumers, firms, and the government have to make is false?

Accepted Answer

A) Governments face the problem of scarcity in making economic decisions. 
B) Only individuals face scarcity; firms and the government do not. 
C) Both firms and individuals face scarcity. 
D) Each faces the problem of scarcity which necessitates trade-offs in making economic decisions. 
A) Governments face the problem of scarcity in making economic decisions. 
B) Only individuals face scarcity; firms and the government do not. 
C) Both firms and individuals face scarcity. 
D) Each faces the problem of scarcity which necessitates trade-offs in making economic decisions.

Question 10

Which of the following statements is true about profit?

Accepted Answer

A) Profit refers to the revenue received from the sale of a quantity of goods. 
B) Profit is calculated by multiplying price and quantity sold. 
C) The terms "accounting profit" and "economic profit" can be used interchangeably. 
D) Profit is the difference between revenue and cost. 
A) Profit refers to the revenue received from the sale of a quantity of goods. 
B) Profit is calculated by multiplying price and quantity sold. 
C) The terms "accounting profit" and "economic profit" can be used interchangeably. 
D) Profit is the difference between revenue and cost.

Question 11

Allocative efficiency is achieved when firms produce goods and services

Accepted Answer

A) at the lowest possible cost. 
B) that consumers value most. 
C) at the lowest opportunity cost. 
D) at a marginal cost of zero. 
A) at the lowest possible cost. 
B) that consumers value most. 
C) at the lowest opportunity cost. 
D) at a marginal cost of zero.

Question 12

Individuals can use economic principles to improve their decision-making process.

Accepted Answer

A) True 
 B)False

Question 13

What is voluntary exchange?

Accepted Answer

Voluntary exchange is a situat

Question 14

Automobile manufacturers produce a range of automobiles such as sports utility vehicles, luxury sedans, pickup trucks, and compact cars.What fundamental economic question are they addressing by making this range of products?

Accepted Answer

A) How to produce goods that consumers want? 
B) Why produce a variety of automobiles? 
C) What to produce? 
D) Who to produce automobiles for? 
A) How to produce goods that consumers want? 
B) Why produce a variety of automobiles? 
C) What to produce? 
D) Who to produce automobiles for?

Question 15

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

Accepted Answer

A) revenue received from 
B) extra cost of 
C) total value of 
D) sales tax on 
A) revenue received from 
B) extra cost of 
C) total value of 
D) sales tax on

Question 16

Where do economic agents such as individuals, firms, and nations interact with each other?

Accepted Answer

A) in public locations monitored by the government 
B) in any arena that brings together buyers and sellers 
C) in any physical location where people can physically get together for selling goods, such as shopping malls 
D) in any location where transactions can be monitored by consumer groups and taxed by the government 
A) in public locations monitored by the government 
B) in any arena that brings together buyers and sellers 
C) in any physical location where people can physically get together for selling goods, such as shopping malls 
D) in any location where transactions can be monitored by consumer groups and taxed by the government

Question 17

Define microeconomics.

Accepted Answer

Microeconomics is the study of

Question 18

In economics, the term ________ means "additional" or "extra."

Accepted Answer

A) allocative 
B) marginal 
C) equity 
D) optimal 
A) allocative 
B) marginal 
C) equity 
D) optimal

Question 19

Technology is defined as

Accepted Answer

A) the process of developing and revising models. 
B) new innovations and creations. 
C) the processes used to produce goods and services. 
D) the process of recycling products. 
A) the process of developing and revising models. 
B) new innovations and creations. 
C) the processes used to produce goods and services. 
D) the process of recycling products.

Question 20

On a two-dimensional graph, ________ illustrates the effects of additional variables.

Accepted Answer

A) moving along a curve 
B) shifting curves 
C) eliminating a curve 
D) adding an additional curve 
A) moving along a curve 
B) shifting curves 
C) eliminating a curve 
D) adding an additional curve

The machines that workers have to work with are considered

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

The prime minister of the tiny island nation of Wowza has proposed that the speed limit on its only highway be reduced by 10 miles per hour on Thursdays.Enacting this proposal would be optimal

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

How are most fundamental economic decisions now determined in China?

Which of the following is part of an economic model?

Define productive efficiency.Does productive efficiency imply allocative efficiency? Explain.

Which of the following statements about the economic decisions consumers, firms, and the government have to make is false?

Which of the following statements is true about profit?

Allocative efficiency is achieved when firms produce goods and services

Individuals can use economic principles to improve their decision-making process.

What is voluntary exchange?

Automobile manufacturers produce a range of automobiles such as sports utility vehicles, luxury sedans, pickup trucks, and compact cars.What fundamental economic question are they addressing by making this range of products?

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

Where do economic agents such as individuals, firms, and nations interact with each other?

Define microeconomics.

In economics, the term ________ means "additional" or "extra."

Technology is defined as

On a two-dimensional graph, ________ illustrates the effects of additional variables.

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

Exam 1: Economics: Foundations and Models

The machines that workers have to work with are considered

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

The prime minister of the tiny island nation of Wowza has proposed that the speed limit on its only highway be reduced by 10 miles per hour on Thursdays.Enacting this proposal would be optimal

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

How are most fundamental economic decisions now determined in China?

Which of the following is part of an economic model?

Define productive efficiency.Does productive efficiency imply allocative efficiency? Explain.

Which of the following statements about the economic decisions consumers, firms, and the government have to make is false?

Which of the following statements is true about profit?

Allocative efficiency is achieved when firms produce goods and services

Individuals can use economic principles to improve their decision-making process.

What is voluntary exchange?

Automobile manufacturers produce a range of automobiles such as sports utility vehicles, luxury sedans, pickup trucks, and compact cars.What fundamental economic question are they addressing by making this range of products?

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

Where do economic agents such as individuals, firms, and nations interact with each other?

Define microeconomics.

In economics, the term ________ means "additional" or "extra."

Technology is defined as

On a two-dimensional graph, ________ illustrates the effects of additional variables.

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters