ECON (Quiz 1)
If an externality is present in a market, economic efficiency may be enhanced by a. government intervention b. a decrease in foreign competition c. fewer market participants d. weaker property rights
a.
the property of society getting the most it can from its scarce resources is called a. efficiency b. equality c. externality d. productivity
a.
the term market failure refers to a. a situation in which the market on its own fails to allocate resources efficiently b. an unsuccessful advertising campaign which reduces demand for a product c. a situation in which competition among firms becomes ruthless d. a firm that is forced out of business because of losses
a.
in the circular-flow diagram a. profit flows from households to firms b. labor flows from households to firms c. services flow from households to firms d. goods flow from households to firms
b.
microeconomics is the study of a. how money affects the economy b. how individual households and firms make decisions c. how government affects the economy d. how the economy as a whole works
b.
what is the opportunity cost to Footville of increasing the production of shoes from 400 to 600? a. 400 socks b. 300 socks c. 200 socks d. 100 socks
b.
Resources are a. scarce for households but plentiful for economies. b. plentiful for households but scarce for economies. c. scarce for households and scarce for economies. d. plentiful for households and plentiful for economies.
c.
Suppose an economy produced 1,000 units of food and 47 machines and experienced a technological advance in its machine-making industry. As a result, this year they want to produce 1,050 units of food and 47 machines. Which of the following statements is correct? a. because the technological advance occurred in the machine-making industry, increases in output can only occur in the machine industry b. in order to increase food production in these circumstances without reducing machine production, the economy must reduce inefficiencies c. the technological advance reduced the amount of resources needed to produce 47 machines, so these resources could be used to produce more food
c.
efficiency a. and equality both refer to how much a society can produce with its resource b. and equality both refer to how fairly the benefits from using resources are distributed between members of a society c. refers to how much a society can produce with its resources. Equality refers to how much evenly the benefits from using resources are distributed among members of society d. refers to how evenly the benefits from using resources are distributed between members of society. Equality refers to how much a society can produce with its resources
c.
how are economists NOT like mathematicians, physicists, and biologists? a. they use models to represent the real world b. they try to address their subject with a scientist's objectivity c. they devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories d. they cannot run lab experiments in the same way that other scientists can
d.