Chapter 1 Quiz

Refer to the provided graph. Which of the following movements would indicate economic growth? from point A to point E from point A to point C from point C to point D from point B to point C

from point C to point D

One major part of the opportunity costs of one's decision to go to college after high school graduation is the education that one gets while in college. high-school diploma needed in order to apply for college. full-time job that one could have gotten instead of going to college. additional income that one can get if one had a college degree.

full-time job that one could have gotten instead of going to college.

When a state government chooses to build more roads, the resources used are no longer available for public education programs. This dilemma illustrates the concept of unemployment issues. production expenses. opportunity cost. unintended consequences.

opportunity cost.

The Latin term "ceteris paribus" means other things equal. prosperity inevitably follows recession. that economics deals with facts, not values. that if event A precedes event B, A has caused B.

other things equal.

Assume a household would consume $100 worth of goods and services per week if its weekly income were zero and would spend an additional $80 per week for each $100 of additional income. Letting C represent consumption and Y represent income, the equation that summarizes this relationship is C = 80 + 100Y. C = 80 + .1Y. C = 100 + 80Y. C = 100 + .8Y.

C = 100 + .8Y.

Which of the following will shift the production possibilities curve to the right? a technological advance that allows farmers to produce more output from given inputs a decrease in the unemployment rate from 8 to 6 percent an increase in the unemployment rate from 6 to 8 percent a decline in the efficiency with which the present labor force is allocated

a technological advance that allows farmers to produce more output from given inputs

The "after this, therefore because of this" fallacy states that the very attempt to accomplish a certain objective may create conditions that prohibit the achievement of that objective. generalizations that are accurate at the level of microeconomics may be inaccurate at the level of macroeconomics. events may drastically alter plans; one's intentions and actual accomplishments may differ considerably. because event A precedes event B, A is necessarily the cause of B.

because event A precedes event B, A is necessarily the cause of B.

The safest way for an individual to leave a burning theater is to run for the nearest exit; it is therefore also the best means of escape for a large audience. This assertion illustrates the correlation fallacy. fallacy of composition. fallacy of limited decisions. "after this, therefore because of this" fallacy.

fallacy of composition

What is a major opportunity cost of going to college on a full-time basis? -the cost of transportation to college instead of to a job -the greater income that will be earned from having a college degree -the forgone income that would have been earned working in a full-time job -the cost of living expenses (room and board) to attend college

the forgone income that would have been earned working in a full-time job

Which of the following is not a main function of the entrepreneur? to make routine pricing decisions to make strategic business decisions to innovate to assume the risk of economic losses

to make routine pricing decisions