Econ 202 Quiz 1
Trade-offs are required because wants are unlimited and resources are__________.
Scarce
Suppose you find $20.
$20(because you could have used the $20 to buy other things) plus you value of the time spent at the game.
Referring to question 17
800
Which of the following involve a trade-off?
All of the Above
A tax on liquor raises the price of liquor and produces and provides an incentive for consumers to drink more T/F
False
Adam Smith's "invisible Hand" concept describes how corporate business reaches into the pockets of consumers like an "invisible hand" T/F
False
An auto manufacturer T/F
False
An individual farmer T/F
False
In the short run, a reduction in inflation tends to cause a reduction in employment T/F
False
The United States will benefit economically if we eliminate trade with Asian countries because we will be forced to produce more of our own cars and clothes. T/F
False
When the government redistributes income with taxes and welfare, the economy becomes more efficient. T/F
False
Workers in the united states have a relatively high standard of living T/F
False
which of the following products would be least capable of producing an externality
Food
Which of the following statements is true about a market economy?
Market participants
Which of the following situations describes the greatest market power
Microsofts impact on the price of desktop operating system
An unintended consequence of public support for higher education is that low tuition provides an incentive T/F
True
High and persistent inflation is caused by excessive growth in the quantity of money in the economy T/F
True
Rational people act only when the marginal benefit of the action exceeds the marginal cost T/F
True
Sue is better at cleaning T/F
True
To a student T/F
True
When a jet flies overhead, the noise it generates is an externality. T/F
True
When economists say, "There aint no such thing as a free lunch," they mean that all economic decisions involve trade offs. T/F
True
you have spent 1000
YES
In the short run
a decrease in inflation
which of the following activities is most likely to produce an externality?
a student has a party in her dorm room
Foreign trade
allows a country to have a greater variety of products at a lower cost
high and persistent inflation is caused by
governments increasing the quantity too much
Raising taxes and increasing welfare payments________.
improves equality at the expense of efficiancy
an increase in the price of beef provides
information that tells producers
Economics is the study of how___________.
society manages its scarce resources
Because people respond to incentives we would expect
students will shift majors from education to accounting
A rational person does not act unless_______.
the action produces marginal benefits
which of the following is not part of the opportunity
the money you spend on food
Workers in the united states enjoy a high standard of living because
workers in the united states are highly prductive
productivity can be increase by
improving the education of workers