econ 102 ch1-3

Economics is all of the following except​ _____

A. a subject that tells countries what goods they must trade

An example of a capital good is​ ____________. A. a haircut B. a slice of pizza C. a​ business's profit D. a satellite communication system E. an insurance policy

D

Human capital is​ _______. A. solely the innate ability we are born with B. machinery that needs human supervision C. the money humans have saved D. the knowledge and skill that people obtain from​ education, on-the-job​ training, and work experience E. any type of​ machinery, labor,​ capital, or entrepreneurship

D

Describe how goods and services are produced in developing economies. A. All farming uses​ labor-intensive technologies but all factories use​ capital-intensive technologies. B. All production uses modern​ capital-intensive technologies. C. Production uses a high level of human capital. D. All production uses primitive​ labor-intensive technologies. E. Most production does not use modern​ capital-intensive technologies but some industries do.

E

Claire and Don are farmers who produce beef and corn. In a​ year, Claire can produce 20 tons of beef or 200 bushels of corn. In a​ year, Don can produce 30 tons of beef or 240 bushels of corn.. To maximize their total output of beef and corn​ _______. A. Don produces beef and Claire produces corn B. Claire and Don each spend half of their time producing beef and the other half producing corn C. Claire produces beef and corn while Don produces nothing D. Claire produces beef and Don produces corn

a

Compared to the developing​ economies, the advanced economies have​ _______ human capital and​ _______ physical capital. A. ​more; more B. ​less; less C. the​ same; the same D. ​more; less E. ​less; more

a

In the circular flow​ model, governments​ _______. A. receive taxes and make transfers directly to households and​ firms, which do not flow the goods or factor markets .B. receive transfers from households and​ firms, which flow through goods and factor markets C. make expenditures on goods and services to households and​ firms, which flow through the goods markets D. pay​ rent, wages,​ interest, and profit to households

a

What are the real flows and money flows that run between​ households, firms, and governments in the circular flow​ model? the services of factors of production; factor the services of factors of production; real government goods; factor payments; factor

a

Economists measure the benefit you get from something by​ _______. a. what you are willing to give up to get it b. the price of it c. how populare it is in the market place d. what a business must give up to produce it

a what you are willing to give up to get it

A circular flow model shows the interrelationship between the​ ____ markets and the​ ____ markets. A. ​household; goods B. ​goods; factor C. ​expenditure; income D. ​household; factor E. ​business; household

b

Describe what goods and services are produced in developing economies. A. Services are large and expanding in developing economies. B. Food production is a large part of developing economies and manufacturing is growing. C. Agriculture and manufacturing are small and shrinking in developing economies. D. Food production is a small part of developing economies. E. Technology is a large part of developing economies.

b

If Country A allocates more resources to producing capital goods than does Country​ B, _________. A. Country B will have more balanced growth than Country A and will incur a lower opportunity cost of growth B. Country A will incur a larger opportunity cost of​ growth, but it will grow more quickly than Country B C. Country​ A's production possibilities shrink more this year than Country​ B's as they cut production of consumption goods D. Country A will grow more quickly than Country B and will get closer to eliminating scarcity

b

The main taxes of the federal government do not include​ _______. A. personal income taxes B. property taxes C. Social Security taxes D. corporate​ (business) income taxes

b

A model of the economy that shows a circular flow of​ _____ that result from decision​ makers' choices and the way these choices interact to determine​ _____ goods and services are produced is the circular flow model. A. income and​ capital; why,​ how, and for whom B. expenditures and​ interests; what,​ how, and why C. expenditures and​ incomes; what,​ how, and for whom D. goods and​ services; what,​ how, and why

c

A tradeoff occurs when we move from​ ______. A. a point outside the PPF to a point inside the PPF B. a point inside the PPF to a point on the PPF C. a point on the PPF to another point on the PPF D. a point on the PPF to a point outside the PPF E. a point outside the PPF to a point on the PPF

c

Consider how incomes are distributed within economies and across the world. Choose the statement that is correct. A. Incomes in China and India are growing slowly relative to that in advanced economies. B. Between 1976 and​ 1998, the number of people in the world who earn​ $1 a day or less increased by 235 million. C. Income inequality across the entire world has decreased during the past 20​ years, and extreme poverty has declined. D. Average income per person per day in the United States is ten times the world average.

c

Olivia and Helen produce shirts and ties. The figure shows​ Olivia's PPFO and​ Helen's PPFH. Olivia and Helen can achieve gains from trade if​ _______. A. Olivia sells both shirts and ties to Helen in exchange for money B. Olivia sells shirts to Helen in exchange for some of the ties that Helen produces C. Helen sells shirts to Olivia in exchange for some of the ties that Olivia produces D. Helen sells both shirts and ties to Olivia in exchange for money

c

The money flows are​ ______. A. exports and imports b. factors of production, consumption goods and services, lotery winnings,a nd prizes c. factor incomes, househld and government expenditures on goods and services, taxes and transfers. d. factor income, tazes transfers and lottery winnings and prizes

c

The production possibilities frontier is the boundary between the combinations of goods and services that​ _____, given the available factors of production and the state of technology. A. we want to produce but cannot consume B. can be produced and the prices paid for those C. can be produced and the combinations that cannot be produced .D. we want to produce and what we want to consume

c

Emily owns an ice cream parlor. In an hour she can produce 10 milkshakes or 30 ice cream sundaes. Ben also owns an ice cream parlor. In an hour he can produce 8 milkshakes or 8 ice cream sundaes. ​Emily's opportunity cost of producing 1 milkshake is​ _____. Ben's opportunity cost of producing 1 milkshake is​ _____. A. 1 ice cream sundae​; 3 ice cream sundaes B. 0.33 ice cream sundae​; 1 ice cream sundae C. 3 ice cream sundaes​; 1 ice cream sundae D. 1 ice cream sundae​; 0.33 ice cream sundae ---has a comparative advantage in the production of milkshakes.

c, ben

Describe for whom goods and services are produced in developing economies. A. All people in developing economies have rising incomes. B. The​ lowest-paid 20 percent of the​ world's population who live in developing economies receives only 10 percent of world income. C. The​ lowest-paid 20 percent of the​ world's population who live in developing economies receives income of only​ $153 a day. D. People in factories have rising incomes but those who work in rural industries are left behind. E. All people in developing economies live in poverty.

d

Economic growth is defined as the ​ _____ . A. increase in wage rates B. recovery from recession C. overtaking of the United States by China D. sustained expansion of production possibilities

d

Two​ countries, Alpha and​ Beta, have identical production possibilities frontiers. If Alpha produces at point A and Beta produces at point B​, then​ _______. A. Alpha's economic growth rate will exceed Beta's B. ​Alpha's and​ Beta's economic growth rates will be the same C. ​Beta's future consumption will be less than than​ Alpha's D. Alpha consumes more than Beta​ today, but it will grow slower than Beta

d (b is hgher than oint a on the fcurvy graph)

When Cindy buys a​ bike, she makes a rational choice because she thinks about​ _____ a. the price of the bike and how much she has to spend b. whether her choice is in the social interest c. how her choice will lead to less congestion on the street d. her benefit from the bike along with the cost of the bike.

d.

Agricultural production as a percentage of total production is higher in​ _______, and​ ________produce a greater total amount of food.

developing economies, developing economies

Payments for labor services flow from​ ______ through the​ ______ markets. a.firms to​ households; factor b. households to fims; factor C. households to​ firms; goods D. firms and governments to​ households; factor E. firms to​ households; goods

firms to . households; factor.

The benefit of something is the

gain or pleasure it brings

Purchases of new national defense equipment flow from​ ______ through the​ ______ markets. A. governments and households to​ firms; goods B. firms to​ governments; factor C. governments to​ firms; government D. governments to​ firms; goods e. governments and households to​ firms; factor

governments to firms; goods

Expenditure on consumption goods and services flows from​ ______ through the​ ______ markets. A. firms to​ households; factor B. governments to​ households; goods C. households and governments to​ firms; goods D. households and governments to​ firms; factor E. households to​ firms; goods

households to firm; goods

which of the following illustrates a tradeoff?

i will study for my exam instead of going to the movie night.

Consider the functional distribution of income. The largest percentage of income paid to the factors of production is paid to​ _________.

labor

Consider the incomes paid to the factors of production. Wages are paid to​ ____ and interest is paid to​ ____.

labor: capital

Households are individuals or groups of people​ _____ together. Firms are institutions that organize​ _____ of goods and services.

living; the production

Headliners of 1. us set to rethink feds role 2. wal mart makes electronics push 3. VW porche take break in talks 4. Economists foresee Protraced Recovery which is micro and which is macro

macro 1-4 micro 23

What you get from a​ one-unit increase in an activity that you enjoy is called​ _______.

marginal benefit

micro or macro motor vehicle production in china is growing by 10 percent a year coffe prices rocket globalization has reduced African poverty the govt must cut its budget deficit apple sells 20 mill iphone 6 a month

micro micro macro macro micro

unattainable points are​ ______. A. on the PPF but not inside the PPF B. outside and on the PPF C. outside the PPF D. inside the PPF but not on the PPF

outside the ppf

Economics is the​ _____ the choices that​ individuals, businesses,​ governments, and entire societies make as they​ _____, and the influences on those​ choices, and the arrangements that coordinate them.

social science that studes; cope with scarcity

When you spen 2 hours reading you can read 50 pages. And three hours you can read 70 pages but you give up working out. The marginal benefit from reading one more hour is__ The marginal benefit is measured by--- a. the extra 20 pages you read; the total time you spent reading b. the extra 20 pages you read; the time at the gym you are willing to give up. c. the extra 20 pages you read; the time at the gym you must give up d; the 70 pages you read; the time at the gym you must give up

the extra 20 pages you read; the time at the gym you are WILLING to give up

The real flows are​ ______ that flow from firms to households and governments through​ ______ markets. labor services; financial the goods and services; real the goods and services; goods the services of factors of production; factor capital goods; goods

the goods and services; goods

you buy a pair of skates. The opportunity cost of the pair of skates is best defined as the a. the time spent getting the pair of skates b. money spent on the pair of skates. c. value of the highest valued alternative given up to buy the pair of skates. d. value of all the possible alternatives given up to buy the skates

value of the highest valued alternative given up to buy the pair of skates.

Which of the following questions is an example of one of the two big questions that summarize the scope of economics.

when do choices made in the pursuit of self interest also promote the social interest.