Question 1

Which of the following is an example of an economic trade-off that a firm has to make?

Accepted Answer

A)  whether it is cheaper to produce with more machines or with more workers 
B)  deciding why consumers want its products 
C)  whether or not consumers will buy its products 
D)  deciding what profit margin it desires for its products 
A)  whether it is cheaper to produce with more machines or with more workers 
B)  deciding why consumers want its products 
C)  whether or not consumers will buy its products 
D)  deciding what profit margin it desires for its products

Question 2

Opportunity cost is defined as

Accepted Answer

A)  the benefit of an activity. 
B)  the monetary expense associated with an activity. 
C)  the highest valued alternative that must be given up to engage in an activity. 
D)  the total value of all alternatives that must be given up to engage in an activity. 
A)  the benefit of an activity. 
B)  the monetary expense associated with an activity. 
C)  the highest valued alternative that must be given up to engage in an activity. 
D)  the total value of all alternatives that must be given up to engage in an activity.

Question 3

Economics is the study of the ________ people make to attain their goals,given their ________ resources.

Accepted Answer

A)  purchases; unlimited 
B)  choices; scarce 
C)  income; available 
D)  decisions; household 
A)  purchases; unlimited 
B)  choices; scarce 
C)  income; available 
D)  decisions; household

Question 4

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal cost.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is motivated by an equity concern?

Accepted Answer

A)  Some U.S. colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need. 
B)  Following the removal of subsidies in urban water use, household demand for water decreased quite significantly in Bogor, Indonesia. 
C)  In November 2003, the Federal Communications Commission implemented the "local number portability" rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region. 
D)  The United States protects intellectual property rights, allowing inventors to prevent others from using their inventions without payment. 
A)  Some U.S. colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need. 
B)  Following the removal of subsidies in urban water use, household demand for water decreased quite significantly in Bogor, Indonesia. 
C)  In November 2003, the Federal Communications Commission implemented the "local number portability" rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region. 
D)  The United States protects intellectual property rights, allowing inventors to prevent others from using their inventions without payment.

Question 6

Which of the following is an example of a "how much" decision?

Accepted Answer

A)  The Pleasantville movie theatre is open only in the evenings. The theatre's manager is debating whether to add daily matinee shows. 
B)  The Zhous have demolished their old home and are debating whether to build a ranch-style house or a Craftsman home. 
C)  You're planning to hold a graduation party and must decide between having your party catered or having a pot-luck. 
D)  Chelsea has withdrawn from the swim team to take up a full-time job. 
A)  The Pleasantville movie theatre is open only in the evenings. The theatre's manager is debating whether to add daily matinee shows. 
B)  The Zhous have demolished their old home and are debating whether to build a ranch-style house or a Craftsman home. 
C)  You're planning to hold a graduation party and must decide between having your party catered or having a pot-luck. 
D)  Chelsea has withdrawn from the swim team to take up a full-time job.

Question 7

Cassie's Quilts alters,reconstructs and restores heirloom quilts.Cassie has just spent $800 purchasing,cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished.After having spent $800,Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively,she can sell the quilt "as is" now for $900.What is her marginal benefit if she sells the quilt "as is" now?

Accepted Answer

A)  $100 
B)  $900 
C)  She makes a marginal loss of $600, not a marginal benefit. 
D)  The marginal benefit cannot be determined. 
A)  $100 
B)  $900 
C)  She makes a marginal loss of $600, not a marginal benefit. 
D)  The marginal benefit cannot be determined.

Question 8

Which of the following is a macroeconomics question?

Accepted Answer

A)  What determines the unemployment rate? 
B)  How is the production quantity of digital cameras determined? 
C)  What factors determine the price of iPhones? 
D)  What determines the wages and benefits of flight attendants? 
A)  What determines the unemployment rate? 
B)  How is the production quantity of digital cameras determined? 
C)  What factors determine the price of iPhones? 
D)  What determines the wages and benefits of flight attendants?

Question 9

Which of the following statements about economic resources is false?

Accepted Answer

A)  Economic resources include financial capital and money. 
B)  Economic resources are also called factors of production. 
C)  Economic resources are used to produce goods and services. 
D)  Some economic resources are human-made while others are found in nature. 
A)  Economic resources include financial capital and money. 
B)  Economic resources are also called factors of production. 
C)  Economic resources are used to produce goods and services. 
D)  Some economic resources are human-made while others are found in nature.

Question 10

If it costs Vijay $150 to design 5 websites and $175 to design 6 websites,then $175 is the marginal cost of producing the 6th Websites.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a normative economic statement?

Accepted Answer

A)  The price of milk is too high. 
B)  The current high price of milk is the result of reduced worldwide supply. 
C)  When the price of milk rises, the quantity of milk purchased falls. 
D)  When the price of milk rises, the cost of milk-based products rises. 
A)  The price of milk is too high. 
B)  The current high price of milk is the result of reduced worldwide supply. 
C)  When the price of milk rises, the quantity of milk purchased falls. 
D)  When the price of milk rises, the cost of milk-based products rises.

Question 12

How does a market system prevent people from getting as many goods and services as they wish?

Accepted Answer

A)  Governments interfere with the market mechanism to influence the allocation of goods and services. 
B)  In a market system, firms can charge any price they want, thus preventing poor people from getting as many goods and services as they wish. 
C)  The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. 
D)  The government imposes taxes on those who earn beyond a certain amount of income. 
A)  Governments interfere with the market mechanism to influence the allocation of goods and services. 
B)  In a market system, firms can charge any price they want, thus preventing poor people from getting as many goods and services as they wish. 
C)  The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. 
D)  The government imposes taxes on those who earn beyond a certain amount of income.

Question 13

What does the term "marginal" mean in economics?

Accepted Answer

A)  the edge of a market 
B)  an additional or extra 
C)  illegal 
D)  secondary 
E)  trivial 
A)  the edge of a market 
B)  an additional or extra 
C)  illegal 
D)  secondary 
E)  trivial

Question 14

At a recent company meeting,Geraldine Erwin,sales manager of Dastoria,a flavored beverage producer announced,"We have increased our sales by 8 percent in just six months." Suppose six months ago,its sales amounted to $452,000,what is the value of its sales today?

Accepted Answer

A)  $36,160 
B)  $415,840 
C)  $488,160 
D)  $565,000 
A)  $36,160 
B)  $415,840 
C)  $488,160 
D)  $565,000

Question 15

Figure 1-2
  
-Refer to Figure 1-2.Calculate the area of the triangle A.

Accepted Answer

A)  $8.4 million 
B)  $6.3 million 
C)  $3.15 million 
D)  $2.1 million 
A)  $8.4 million 
B)  $6.3 million 
C)  $3.15 million 
D)  $2.1 million

Question 16

What is an economic variable? Give an example of an economic variable.

Accepted Answer

An economic variable is someth

Question 17

According to census figures,between 1970 and 2007 the number of doctors who described themselves as self-employed

Accepted Answer

A)  fell for male doctors and rose for female doctors. 
B)  fell for female doctors and rose for male doctors. 
C)  fell for both male and female doctors. 
D)  rose for both male and female doctors. 
A)  fell for male doctors and rose for female doctors. 
B)  fell for female doctors and rose for male doctors. 
C)  fell for both male and female doctors. 
D)  rose for both male and female doctors.

Question 18

In a market economy,those who are willing and able to buy what is produced

Accepted Answer

A)  receives what the government allows them to receive. 
B)  receive the most of what is produced. 
C)  receive no more than everyone else in the market. 
D)  solely determine what is produced. 
A)  receives what the government allows them to receive. 
B)  receive the most of what is produced. 
C)  receive no more than everyone else in the market. 
D)  solely determine what is produced.

Question 19

Table 1-2
  
-Refer to Table 1-2. The table above shows the sales of flat-panel television sets in Central America.Present the information using a bar graph.

Accepted Answer

The answer of Table 1-2
  
-Refer to Table 1-2....

Question 20

All economic questions arise from the fact that resources are scarce.

Accepted Answer

A) True 
 B)False

Which of the following is an example of an economic trade-off that a firm has to make?

Opportunity cost is defined as

Economics is the study of the people make to attain their goals,given their resources.

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal cost.

Which of the following is motivated by an equity concern?

Which of the following is an example of a "how much" decision?

Which of the following is a macroeconomics question?

Which of the following statements about economic resources is false?

If it costs Vijay $150 to design 5 websites and $175 to design 6 websites,then $175 is the marginal cost of producing the 6th Websites.

Which of the following is a normative economic statement?

How does a market system prevent people from getting as many goods and services as they wish?

What does the term "marginal" mean in economics?

At a recent company meeting,Geraldine Erwin,sales manager of Dastoria,a flavored beverage producer announced,"We have increased our sales by 8 percent in just six months." Suppose six months ago,its sales amounted to $452,000,what is the value of its sales today?

Figure 1-2 -Refer to Figure 1-2.Calculate the area of the triangle A.

What is an economic variable? Give an example of an economic variable.

According to census figures,between 1970 and 2007 the number of doctors who described themselves as self-employed

In a market economy,those who are willing and able to buy what is produced

Table 1-2 -Refer to Table 1-2. The table above shows the sales of flat-panel television sets in Central America.Present the information using a bar graph.

All economic questions arise from the fact that resources are scarce.

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 1: Economics: Foundations and Models

Which of the following is an example of an economic trade-off that a firm has to make?

Opportunity cost is defined as

Economics is the study of the ________ people make to attain their goals,given their ________ resources.

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal cost.

Which of the following is motivated by an equity concern?

Which of the following is an example of a "how much" decision?

Which of the following is a macroeconomics question?

Which of the following statements about economic resources is false?

If it costs Vijay $150 to design 5 websites and $175 to design 6 websites,then $175 is the marginal cost of producing the 6th Websites.

Which of the following is a normative economic statement?

How does a market system prevent people from getting as many goods and services as they wish?

What does the term "marginal" mean in economics?

At a recent company meeting,Geraldine Erwin,sales manager of Dastoria,a flavored beverage producer announced,"We have increased our sales by 8 percent in just six months." Suppose six months ago,its sales amounted to $452,000,what is the value of its sales today?

Figure 1-2 -Refer to Figure 1-2.Calculate the area of the triangle A.

What is an economic variable? Give an example of an economic variable.

According to census figures,between 1970 and 2007 the number of doctors who described themselves as self-employed

In a market economy,those who are willing and able to buy what is produced

Table 1-2 -Refer to Table 1-2. The table above shows the sales of flat-panel television sets in Central America.Present the information using a bar graph.

All economic questions arise from the fact that resources are scarce.

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

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Economics is the study of the people make to attain their goals,given their resources.