ECON 201 CH 1, 2, 6
Which statement describes the equity-efficiency trade‑off? - Actions intended to make economic outcomes fairer may cause efficiency to decrease. - Government intervention can increase efficiency in a market. - The least efficient economic outcome is the fairest outcome. - There is always a more equitable outcome that is also more efficient.
Actions intended to make economic outcomes fairer can cause efficiency to decrease
The five-dollar Burger Joint gift card that your friend gave you for your birthday expires today. You can either use the gift card to buy yourself dinner at Burger Joint, or you can stay home and eat a delicious home-cooked meal. What is the opportunity cost of eating the home-cooked meal? - The value of a five-dollar dinner at Burger Joint. - The value of the ingredients that go into the home-cooked meal, and the value of a five-dollar dinner at Burger Joint. - There is no opportunity cost since you did not pay for the gift card. - The time it takes to eat your home-cooked meal, and the value of the five-dollar dinner at Burger Joint. - The value of the ingredients that go into the home-cooked meal.
The value of the ingredients that go into the home-cooked meal, and the value of a five-dollar dinner at Burger Joint.
Which decision is least likely to be well explained by marginal analysis? - deciding which college to attend - deciding how fast to go on the freeway - deciding whether to take a lunch break or knock on another door as a door-to-door salesperson - deciding between watching another episode of your favorite TV series and going to bed - deciding whether to do more sit-ups at the gym
deciding which college to attend
Which is NOT an example of a resource? - labor - land - firms - machinery - human capital
firms
The day-to-day living conditions of modern Americans are very different from what they were in the 20th century. While doing research for an economics project, Charlie discovers that more households today, as compared to households 100 years ago, have electricity, air conditioning, and a car. Which of the following explains why modern Americans enjoy a higher standard of living than Americans 100 years ago? - There has been economic growth in our society. - Market failures are nonexistent. - The invisible hand has guided all nations around the world to this prosperity. - Americans have prospered and earned more money due to a complete lack of recessions. In which field do researchers focus on investigating the phenomena described? - Sociology - Business - Political Science - Economics
- There has been economic growth in our society - economics
Which demonstrates a scenario with no opportunity cost? - It's Friday night and you stay up late talking and hanging out with your friends. - The chemistry club is giving out free pizza for lunch to all who come to their table to get it. - Naomi, age 8, is at a bookstore and chooses to buy a book about a young wizard instead of buying a math textbook that she would probably never open. - Chez Moi and Chez Nous, two premiere French restaurants with three Michelin stars, both offer you a full time sous chef job at the same salary. You are ecstatic because you know it is a win-win scenario and choose to work for Chez Nous. - All of these scenarios have an opportunity cost.
All of these scenarios have an opportunity cost.
In a market-oriented economy, individuals' economic lives are said to be - interrelated with many other individuals and firms. - almost completely controlled by government regulation. - illegal and in violation of government rules on prices and sales. - based more on production than on consumption.
interrelated with many other individuals and firms.
Daniel has decided to open his own bakery using locally sourced ingredients and supplies. He provides income and jobs to local suppliers. He also provides his community with a place to buy delicious baked goods. - a command economy - market failure - the invisible hand - a recession
the invisible hand