Question 1

What is an economic model?

Accepted Answer

A) It is a description of an economic issue that includes all possible related information. 
B) It is a description of an economic issue based on official government information. 
C) It is a detailed version of some aspect of economic life used to analyze an economic issue. 
D) It is a simplified version of some aspect of economic life used to analyze an economic issue. 
A) It is a description of an economic issue that includes all possible related information. 
B) It is a description of an economic issue based on official government information. 
C) It is a detailed version of some aspect of economic life used to analyze an economic issue. 
D) It is a simplified version of some aspect of economic life used to analyze an economic issue.

Question 2

When voluntary exchange takes place,only one party gains from the exchange.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a problem inherent in centrally planned economies?

Accepted Answer

A) There are no problems and everyone,including consumers,is satisfied. 
B) There is too much production of low-cost,high-quality goods and services. 
C) Production managers are more concerned with satisfying government's orders than with satisfying consumer wants. 
D) Unemployment is too high. 
A) There are no problems and everyone,including consumers,is satisfied. 
B) There is too much production of low-cost,high-quality goods and services. 
C) Production managers are more concerned with satisfying government's orders than with satisfying consumer wants. 
D) Unemployment is too high.

Question 4

The Stogie Shop,a cigar store in the mall,sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each.What is the opportunity cost of buying a hand-rolled cigar?

Accepted Answer

A) 4 machine-made cigars 
B) 1/4 of a machine-made cigar 
C) $10.00 
D) $2.50 
A) 4 machine-made cigars 
B) 1/4 of a machine-made cigar 
C) $10.00 
D) $2.50

Question 5

________ involves undertaking an activity until its marginal benefits equal marginal costs.

Accepted Answer

A) Scarcity reduction 
B) Central planning 
C) Marginal analysis 
D) Market intervention 
A) Scarcity reduction 
B) Central planning 
C) Marginal analysis 
D) Market intervention

Question 6

Which of the following is counted as "capital" in economics?

Accepted Answer

A) the money people have 
B) the machines workers have to work with 
C) the accumulated skills and training workers have 
D) the wealth people have 
A) the money people have 
B) the machines workers have to work with 
C) the accumulated skills and training workers have 
D) the wealth people have

What is an economic model?

When voluntary exchange takes place,only one party gains from the exchange.

Which of the following is a problem inherent in centrally planned economies?

The Stogie Shop,a cigar store in the mall,sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each.What is the opportunity cost of buying a hand-rolled cigar?

________ involves undertaking an activity until its marginal benefits equal marginal costs.

Which of the following is counted as "capital" in economics?

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

What is an economic model?

When voluntary exchange takes place,only one party gains from the exchange.

Which of the following is a problem inherent in centrally planned economies?

The Stogie Shop,a cigar store in the mall,sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each.What is the opportunity cost of buying a hand-rolled cigar?

________ involves undertaking an activity until its marginal benefits equal marginal costs.

Which of the following is counted as "capital" in economics?

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