ECON 2314 Graded Homework with Graphing Questions - Chapter 1

A theory composed of a number of assumptions and facts boiled down to their basic relevant elements is called a: A: practice. B: conclusion. C: metaphor. D:model.

model

Rational behavior requires thinking at the margin. Which example represents this type of thinking? A: deciding whether a second burger is worth the extra $2 B: All of these examples represent thinking at the margin. C: deciding whether the overtime pay is worth working on your day off D: deciding whether to pay a fine for polluting the local harbor or installing antipollution machinery

All of these examples represent thinking at the margin.

Which of these is NOT an example of market failure? A: Consumers must buy water from one local water utility. B: Air is polluted by a manufacturing firm. C: Competition leads firms to provide products at the lowest possible price. D: Water is polluted by a paper company located by a river.

Competition leads firms to provide products at the lowest possible price.

Which situation(s) may require government intervention? I. A local business has made a profit in each of the last ten years. II. Students are having difficulty deciding whether to go the beach or to go hiking for their class trip. III. A manufacturing firm on a river is dumping production run off into the water. A: II and III B: I and II C: II only D: III only

III only

In the study of economics, the goals of efficiency and equity are often: A: given equal emphasis. B: objectively definable. C: compatible. D: in conflict with one another.

In conflict with one another

Which statement is a key idea in economic thinking? A: All of these are key ideas in economic thinking. B: Incentives matter. C: The value of a good can be objectively measured and is the same for everyone. D: Scarcity exists for the poor but not for the rich.

Incentives matter.

The economics of uranium mining would be studied in: A: inductive logic. B: macroeconomics. C: deductive logic D.microeconomics.

Microeconomics

Economics is BEST defined as the study of how: A: to classify resources used to produce final goods and services. B: people make rational decisions. C: resources are apportioned to satisfy human wants. D: technology can be used to change scarce resources into free resources.

People make rational decisions

Which statement is TRUE about specialization and exchange between two individuals? A: They generally benefit the poorer individual as well as the richer individual. B: They generally benefit neither the poorer individual nor the richer individual. C: They generally benefit the poorer individual at the expense of the richer individual. D: They generally benefit the richer individual at the expense of the poorer individual.

They generally benefit the poorer individual as well as the richer individual.

Paying a salesperson more for increased sales is an example of: A: an incentive. B: efficiency. C: an opportunity D: cost.equity.

an incentive.

Supply and demand analysis is used: A: in neither microeconomics nor macroeconomics. B: only in microeconomics. C: in both microeconomics and macroeconomics. D. only in macroeconomics.

both microeconomics and macroeconomics.

Scarcity: A: is synonymous with poverty. B: can be eliminated with adequate resources. C: is eliminated with greater technology. D: is faced by all individuals and societies.

is faced by all individuals and societies.

People use _____ to determine how many hours to work, and businesses use _____ to determine how much of their product they are willing to supply to the market. A: allocative efficiency; production efficiency B: production efficiency; marginal analysis C: marginal analysis; marginal analysis D: marginal analysis; allocative efficiency

marginal analysis; marginal analysis

When the government chooses to use resources to build tourist centers, the selected resources are no longer available to build highways. This BEST illustrates the concept of: A: opportunity cost. B: scarcity. C: macroeconomics. D: efficiency.

opportunity cost.

When goods are produced at the lowest possible cost, an economy is said to have achieved: A: inferior quality goods. B: cheap production. C: allocative efficiency. D: production efficiency.

production efficiency

The opportunity costs of attending college do NOT include: A: the expenditures for food. B: the costs of textbooks or eBooks. C: the forgone wages that could have been earned working. D: required student activity fees.

the expenditures for food.

Macroeconomics is concerned with issues such as: A: which job to take. B: unemployment. C: what price to charge for goods. D: which orange juice to buy.

unemployment

Because of scarcity: A: we face tradeoffs in nearly every choice we make. B: wants are limited. c: resources are limitless. D: choices are unlimited.

we face tradeoffs in nearly every choice we make.