Question 1

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 2

What is a household? How do households interact with firms in a market?

Accepted Answer

A household consists of all pe

Question 3

In 2010,Smileytown consumed 50,000 tubes of toothpaste.In 2011,toothpaste consumption rose to 62,000 tubes.Calculate the percentage change in toothpaste consumption.

Accepted Answer

A) 12% 
B) 16.42% 
C) 19.35% 
D) 24% 
A) 12% 
B) 16.42% 
C) 19.35% 
D) 24%

Question 4

Table 1-1
   Eva runs a small bakery in the village of Roggerli.She is debating whether she should extend her hours of operation.Eva figures that her sales revenue will depend on the number of hours the bakery is open as shown in the table above.She would have to hire a worker for those hours at a wage rate of $12 per hour.
-Refer to Table 1-1.What is Eva's marginal cost if she decides to stay open for two hours instead of one hour?

Accepted Answer

A) $12 
B) $24 
C) $36 
D) $71 
A) $12 
B) $24 
C) $36 
D) $71

Question 5

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 6

Scarcity refers to the situation in which

Accepted Answer

A) unlimited wants exceed limited resources. 
B) unlimited resources exceed limited wants. 
C) a country's population is larger than its resource base. 
D) a nation's poverty level increases faster than its population. 
A) unlimited wants exceed limited resources. 
B) unlimited resources exceed limited wants. 
C) a country's population is larger than its resource base. 
D) a nation's poverty level increases faster than its population.

Question 7

The U.S.Bureau of Labor Statistics predicts that four of the six fastest growing occupations over the next ten years will be in

Accepted Answer

A) the medical field. 
B) the travel and leisure industry. 
C) education. 
D) construction. 
A) the medical field. 
B) the travel and leisure industry. 
C) education. 
D) construction.

Question 8

All ________ economies have been political dictatorships.

Accepted Answer

A) centrally planned 
B) mixed 
C) market 
D) mixed and market 
A) centrally planned 
B) mixed 
C) market 
D) mixed and market

Question 9

Which of the following statements is true?

Accepted Answer

A) An inverse relationship has a positive slope value. 
B) A direct relationship has a negative slope value. 
C) A curved line has slope values that change at every point. 
D) A straight line has a slope of one. 
A) An inverse relationship has a positive slope value. 
B) A direct relationship has a negative slope value. 
C) A curved line has slope values that change at every point. 
D) A straight line has a slope of one.

Question 10

"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 11

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

Accepted Answer

A) marginal revenue 
B) gross earnings 
C) pure profit 
D) marginal costs 
E) net benefit 
A) marginal revenue 
B) gross earnings 
C) pure profit 
D) marginal costs 
E) net benefit

Question 12

Who receives the goods and services produced in the United States depends largely on

Accepted Answer

A) how income is distributed. 
B) how the goods and services are produced. 
C) what goods and services are produced. 
D) government redistribution. 
A) how income is distributed. 
B) how the goods and services are produced. 
C) what goods and services are produced. 
D) government redistribution.

Question 13

Suppose when the price of hybrid automobiles rises,consumers buy fewer hybrid automobiles.This implies that

Accepted Answer

A) there is a positive relationship between hybrid automobile prices and quantities purchased by consumers. 
B) there is a negative relationship between hybrid automobile prices and quantities purchased by consumers. 
C) there is a direct relationship between hybrid automobile prices and quantities purchased by consumers. 
D) there is a one-to-one relationship between hybrid automobile prices and quantities purchased by consumers. 
A) there is a positive relationship between hybrid automobile prices and quantities purchased by consumers. 
B) there is a negative relationship between hybrid automobile prices and quantities purchased by consumers. 
C) there is a direct relationship between hybrid automobile prices and quantities purchased by consumers. 
D) there is a one-to-one relationship between hybrid automobile prices and quantities purchased by consumers.

Question 14

"The distribution of income should be determined by the government" is an example of a normative economic statement.

Accepted Answer

A) True 
 B)False

Question 15

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 16

What is the difference between economic efficiency and equity?

Accepted Answer

Economic efficiency is concerned with ma

Question 17

Which of the following contributes to the efficiency of markets?

Accepted Answer

A) Governments play an active role in the day-to-day operations of markets. 
B) Markets are able to bring about an equitable distribution of goods and services. 
C) Markets promote equal standards of living. 
D) Markets promote competition and voluntary exchange. 
A) Governments play an active role in the day-to-day operations of markets. 
B) Markets are able to bring about an equitable distribution of goods and services. 
C) Markets promote equal standards of living. 
D) Markets promote competition and voluntary exchange.

Question 18

Which of the following is an example of an activity undertaken by an entrepreneur?

Accepted Answer

A) choosing the color scheme for your renovated kitchen 
B) being promoted to the position of Chief of Police 
C) being appointed to the U.S.Supreme Court 
D) starting your own snow cone business 
A) choosing the color scheme for your renovated kitchen 
B) being promoted to the position of Chief of Police 
C) being appointed to the U.S.Supreme Court 
D) starting your own snow cone business

Question 19

Examining the conditions that could lead to inflation in an economy is an example of microeconomics topic.

Accepted Answer

A) True 
 B)False

Question 20

The cost incurred from the production of an additional unit of a product

Accepted Answer

A) is a marginal cost to the firm. 
B) is called a loss. 
C) is called opportunity cost. 
D) must be zero for a firm to be efficient. 
A) is a marginal cost to the firm. 
B) is called a loss. 
C) is called opportunity cost. 
D) must be zero for a firm to be efficient.

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.

What is a household? How do households interact with firms in a market?

In 2010,Smileytown consumed 50,000 tubes of toothpaste.In 2011,toothpaste consumption rose to 62,000 tubes.Calculate the percentage change in toothpaste consumption.

The term "market" in economics refers to

Scarcity refers to the situation in which

The U.S.Bureau of Labor Statistics predicts that four of the six fastest growing occupations over the next ten years will be in

All ________ economies have been political dictatorships.

Which of the following statements is true?

"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement.

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

Who receives the goods and services produced in the United States depends largely on

Suppose when the price of hybrid automobiles rises,consumers buy fewer hybrid automobiles.This implies that

"The distribution of income should be determined by the government" is an example of a normative economic statement.

Economic models

What is the difference between economic efficiency and equity?

Which of the following contributes to the efficiency of markets?

Which of the following is an example of an activity undertaken by an entrepreneur?

Examining the conditions that could lead to inflation in an economy is an example of microeconomics topic.

The cost incurred from the production of an additional unit of a product

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 More Realistic Setting

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

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.

What is a household? How do households interact with firms in a market?

In 2010,Smileytown consumed 50,000 tubes of toothpaste.In 2011,toothpaste consumption rose to 62,000 tubes.Calculate the percentage change in toothpaste consumption.

The term "market" in economics refers to

Scarcity refers to the situation in which

The U.S.Bureau of Labor Statistics predicts that four of the six fastest growing occupations over the next ten years will be in

All ________ economies have been political dictatorships.

Which of the following statements is true?

"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement.

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

Who receives the goods and services produced in the United States depends largely on

Suppose when the price of hybrid automobiles rises,consumers buy fewer hybrid automobiles.This implies that

"The distribution of income should be determined by the government" is an example of a normative economic statement.

Economic models

What is the difference between economic efficiency and equity?

Which of the following contributes to the efficiency of markets?

Which of the following is an example of an activity undertaken by an entrepreneur?

Examining the conditions that could lead to inflation in an economy is an example of microeconomics topic.

The cost incurred from the production of an additional unit of a product

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 More Realistic Setting

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