BUS 1103: MICRO
Absolute advantage is when one country can use fewer resources to produce a good compared to another country; when a country is more productive compared to another country. Select one: a. True b. False
True
Absolute advantage simply compares the productivity of a worker between countries. Select one: a. True b. False
True
Affirmative action is active efforts by government or businesses that give special rights to minorities in hiring, promotion, or access to education to make up for past discrimination. Select one: a. True b. False
True
Allocative efficiency is when the mix of goods produced represents the mix that society most desires. Select one: a. True b. False
True
An externality occurs when an exchange between a buyer and seller has an impact on a third party who is not part of the exchange. Select one: a. True b. False
True
An increase in demand and supply will create changes in the financial market to lead an increase in the quantity of automobiles made and purchased. Select one: a. True b. False
True
An increase in the price of some product signals consumers that there is a surplus. Select one: a. True b. False
True
Certain global environmental issues, such as global warming, spillover national borders and require addressing with some form of international agreement. Select one: a. True b. False
True
Changes in the stock price depend on changes in expectations about future profits. Select one: a. True b. False
True
Command-and-control regulation sets specific limits for pollution emissions and/or specific pollution-control technologies that firms must use. Select one: a. True b. False
True
Common market is economic agreement between countries to allow free trade in goods, services, labor, and financial capital between members while having a common external trade policy. Select one: a. True b. False
True
Economists also use specialization to describe the occurrence when a country shifts resources to focus on producing a good that offers comparative advantage. Select one: a. True b. False
True
Economists believe that the choices people make are influenced by their incomes, by the prices of goods and services they consume, and by factors like where they live. Select one: a. True b. False
True
Economists believe that we can analyze individuals' decisions, such as what goods and services to buy, as choices we make within certain budget constraints. Select one: a. True b. False
True
Elasticities that are less than one indicate low responsiveness to price changes and correspond to inelastic demand or inelastic supply. Select one: a. True b. False
True
Elasticity reveals whether firms can pass higher costs that they incur on to their consumers. Select one: a. True b. False
True
For every dollar consumers spend, they should spend it on products with the highest marginal utility per dollar of expenditure to maximize total utility. Select one: a. True b. False
True
Free trade results in gains from trade. Select one: a. True b. False
True
Gross domestic product (GDP) measures the size of total production in an economy. Select one: a. True b. False
True
If supply is more inelastic than demand, sellers bear most of the tax burden. Select one: a. True b. False
True
In a budget constraint line, the quantity of one good is on the horizontal axis and the quantity of the other good on the vertical axis. Select one: a. True b. False
True
In a market economy, decision-making is decentralized and is based on a private enterprise . Select one: a. True b. False
True
Opportunity cost is costs that we make in the past that we cannot recover. Select one: a. True b. False
False
A price floor is the lowest price that one can legally pay for some good or service. Select one: a. True b. False
True
The invisible hand is Adam Smith's concept that individuals' self-interested behavior can lead to positive social outcomes. Select one: a. True b. False
True
The labor market has a demand and a supply. Select one: a. True b. False
True
Low-income countries benefit less from trade than high-income countries do. Select one: a. True b. False
False
Market demand curves reflect positive externalities. Select one: a. True b. False
False
Maximum loss is the loss in social surplus that occurs when the economy produces at an inefficient quantity. Select one: a. True b. False
False
Measuring inequality involves making comparisons only for the poor. Select one: a. True b. False
False
The legal rights of ownership on which others are not allowed to infringe without paying compensation is property rights. Select one: a. True b. False
True
Price elasticity of supply is when the elasticity of either supply is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price. Select one: a. True b. False
False
Private rates of return is when the estimated rates of return go primarily to society; for example, providing free education. Select one: a. True b. False
False
Producer surplus is larger at the equilibrium quantity and price than it will be at any other quantity and price. Select one: a. True b. False
False
Rent control is an example of a government forced price floor. Select one: a. True b. False
False
Substitute goods have negative cross-price elasticities of demand. Select one: a. True b. False
False
Sunk cost will affect the current decision. Select one: a. True b. False
False
Which is the oldest economic system and is used in parts of Asia, Africa, and South America? Select one: a. Command economy b. Traditional economy c. Market economy
B. Traditional economy
When a country can produce a good at a lower cost in terms of other goods; or, when a country has a lower opportunity cost of production is . Select one: a. Absolute advantage b. Comparative advantage c. Economic advantage
B.Comparative advantage
What are the steps when using the supply and demand framework to think about how an event will affect the equilibrium price and quantity? Select one: a. (1) sketch a supply and demand diagram to think about what the market looked like before the event; (2) decide whether the event will affect supply or demand; (3) decide whether all workers at a firm can be required to join a union as a condition of employment;; (4) compare the new equilibrium price and quantity to the original ones b. (1) sketch a supply and demand diagram to think about what the market looked like before the event; (2) decide whether there is enough information necessary to make an informed decision; (3) decide whether the effect on supply or demand is negative or positive, and draw the appropriate shifted supply or demand curve; (4) compare the new equilibrium price and quantity to the original ones c. (1) sketch a supply and demand diagram to think about what the market looked like before the event; (2) decide whether the event will affect supply or demand; (3) decide whether the effect on supply or demand is negative or positive, and draw the appropriate shifted supply or demand curve; (4) compare the new equilibrium price and quantity to the original ones
C. (1) sketch a supply and demand diagram to think about what the market looked like before the event; (2) decide whether the event will affect supply or demand; (3) decide whether all workers at a firm can be required to join a union as a condition of employment;; (4) compare the new equilibrium price and quantity to the original ones
Nontariff barriers are laws that block imports sold below the cost of production and impose tariffs that would increase the price of these imports to reflect their cost of production. Select one: a. True b. False
False
Biogenetics is the full spectrum of animal and plant genetic material. Select one: a. True b. False
FalSe
A increase in demand changes in the financial market tol lead a decline in interest rates. Select one: a. True b. False
False
A lower price for one good can lead to more or less demand of the other good. Select one: a. True b. False
False
A stock is a financial contract through which a borrower agrees to repay the amount that it borrowed. Select one: a. True b. False
False
Allocative efficiency is when it is impossible to produce more of one good (or service) without decreasing the quantity produced of another good (or service). Select one: a. True b. False
False
An externality can only have a negative impact on the third party. Select one: a. True b. False
False
As the interest rate decreases, consumers will reduce the quantity that they borrow. Select one: a. True b. False
False
Effective income tax is a method of assisting the working poor through the tax system. Select one: a. True b. False
False
Elasticities are often higher in the short run than in the long run. Select one: a. True b. False
False
Estate tax is a tax system in which the rich pay a higher percentage of their income in taxes, rather than a higher absolute amount. Select one: a. True b. False
False
Excess supply is at the existing price, the quantity demanded exceeds the quantity supplied; also called a shortage. Select one: a. True b. False
False
Goods which people see as necessities have a more elastic demand. Select one: a. True b. False
False
Government agencies sell their products in a market to collect financial capital. Select one: a. True b. False
False
If demand is more inelastic than supply, consumers bear less of the tax burden. Select one: a. True b. False
False
In the demand and supply analysis of financial markets, the equilibrium is the rate of return or the interest rate received. Select one: a. True b. False
False
Income inequality applies to the condition of people who cannot afford the necessities of life. Select one: a. True b. False
False
Inelasticity demand is when the elasticity of demand is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price. Select one: a. True b. False
False
Inequality is actions based on the belief that members of a certain group or groups are in some way inferior solely because of a factor such as race, gender, or religion. Select one: a. True b. False
False
Intra-industry trade is when a country that can consume more than it can produce as a result of specialization and trade. Select one: a. True b. False
False
The charitable permit program is a permit that allows a firm to emit a certain amount of pollution; firms with more permits than pollution can sell the remaining permits to other firms. Select one: a. True b. False
False
The concept of elasticity applies to any market, not just markets for goods and services. Select one: a. True b. False
False
The labor market in which firms sell and households buy. Select one: a. True b. False
False
The price ceiling does change the equilibrium price. Select one: a. True b. False
False
The purpose of an economy is to take a complex, real-world issue and simplify it down to its essentials. Select one: a. True b. False
False
Total utility shows the possible combinations of two goods that are affordable given a consumer's limited income. Select one: a. True b. False
False
Trade barriers allow each country to take advantage of lower opportunity costs in the other country. Select one: a. True b. False
False
Utility and marginal utility cannot be used to discuss making consumer choices along a budget constraint. Select one: a. True b. False
False
When a country has high levels of productivity in all goods, it cannot benefit from trade. Select one: a. True b. False
False
When nations increase production in their area of comparative advantage and trade with each other, only one country will benefit. Select one: a. True b. False
False
How can you measure the quantity of labor? Select one: a. Number of hours b. Number of workers c. All the above
c. All the above
What is an example of safety net? Select one: a. Companies receiving a tax credit b. Food assistance for pregnant women and newborns c. None of the above
Food assistance for pregnant women and newborns
A government can measure poverty based on a percentage of the median income. Select one: a. True b. False
Tr
Perfectly Competitive Labor Market is when firms can hire all the labor they wish at the going market wage. Select one: a. True b. False
Tru
A country has a comparative advantage when it can produce a good at a lower cost in terms of other goods. Select one: a. True b. False
True
A demand and supply analysis of protectionism shows that it is not just a matter of domestic gains and foreign losses, but a policy that imposes substantial domestic costs as well. Select one: a. True b. False
True
A higher level of income causes a demand curve to shift to the right for a normal good, which means that the income elasticity of demand is positive. Select one: a. True b. False
True
A pollution charge gives a profit maximizing firm an incentive to determine ways to reduce its emissions as long as the marginal cost of reducing the emissions is less than the tax. Select one: a. True b. False
True
A poverty trap occurs when government-support payments for the poor decline as the poor earn more income. Select one: a. True b. False
True
A present value is a bond's current price at a given time. Select one: a. True b. False
True
In the market for financial capital, households and firms can be on either side of the market. Select one: a. True b. False
True
Income inequality is when one group receives a disproportionate share of total income or wealth than others. Select one: a. True b. False
True
Intellectual property rights include patents, which give the inventor the exclusive legal right to make, use, or sell the invention for a limited time, and copyright laws, which give the author an exclusive legal right over works of literature, music, film/video, and pictures. Select one: a. True b. False
True
Investigating how given dollar amounts can mean different things to individuals depending on the situation is behavioral economics. Select one: a. True b. False
True
Lorenz curve is a graph that compares the cumulative income actually received to a perfectly equal distribution of income. Select one: a. True b. False
True
Marginal utility diminishes as additional units are consumed, which means that each subsequent unit of a good consumed provides less additional utility. Select one: a. True b. False
True
Market-oriented environmental policies create incentives to allow firms some flexibility in reducing pollution. Select one: a. True b. False
True
Market-oriented environmental tools offer a mechanism for providing either the same environmental protection at lower cost, or providing a greater degree of environmental protection for the same cost. Select one: a. True b. False
True
Mental accounting is a concept in the field of behavioral economics. Select one: a. True b. False
True
Nonexcludable is when it is costly or impossible to exclude someone from using the good, and thus hard to charge for it. Select one: a. True b. False
True
On the supply side of markets, producers of goods and services typically find it easier to expand production in the long term of several years rather than in the short run of a few months. Select one: a. True b. False
True
On the supply side of markets, producers of goods and services typically find it easier to expand production in the long term of several years rather than in the short run of a few months. Select one: a. True b. False
True
One common way of measuring income inequality is to rank all households by income, from lowest to highest, and then to divide all households into five groups with equal numbers of people, known as quintiles. Select one: a. True b. False
True
Perfect inelasticity is a percentage change in price, no matter how large, results in zero change in quantity. Select one: a. True b. False
True
Perfectly competitive labor market is a labor market where neither suppliers of labor nor demanders of labor have any market power. Select one: a. True b. False
True
Private benefits are the benefits a person who consumes a good or service receives, or a new product's benefits or process that a company invents that the company captures. Select one: a. True b. False
True
Protectionist policies often seek to shield domestic producers and domestic workers from foreign competition.. Select one: a. True b. False
True
Some workers and firms will suffer because of international trade. Select one: a. True b. False
True
Splitting up the value chain is many of the different stages of producing a good happen in different geographic locations. Select one: a. True b. False
True
Sunk cost is costs that we make in the past that we cannot recover. Select one: a. True b. False
True
The advantage of the Midpoint Method for Elasticity is that one obtains the same elasticity between two price points whether there is a price increase or decrease. Select one: a. True b. False
True
The economies of scale mean that for many goods, as the level of production increases, the average cost of producing each individual unit declines. Select one: a. True b. False
True
The median voter theory argues that politicians will try to match policies to what pleases the median voter preferences. Select one: a. True b. False
True
The point on the budget line where the consumer gets the most satisfaction; this occurs when the ratio of the prices of goods is equal to the ratio of the marginal utilities is called . Select one: a. True b. False
True
The slope of the production possibilities frontier shows the opportunity cost. Select one: a. True b. False
True
The typical response to higher prices is that a person chooses to consume less of the product with the higher price. Select one: a. True b. False
True
There have been times when countries used tariffs as a political tool to protect certain vested economic, social, and cultural interests. Select one: a. True b. False
True
Utility-maximizing combination is based on looking at the tradeoffs, measured in terms of marginal utility, of consuming less of one good and more of another. Select one: a. True b. False
True
The branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance is . Select one: a. Macroeconomics b. Microeconomics c. Economics
a. Macroeconomics
What does the term inferior good mean? Select one: a. A good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls b. A good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls c. A good that can replace another to some extent, so that greater consumption of one good can mean less of the other
a. A good in which the quantity demanded falls as income rises, and in which quantity demanded rises and income falls
What is a labor union? Select one: a. An organization of workers that negotiates as a group with employers over compensation and work conditions b. An organization that combines inputs of labor, capital, land, and raw or finished component materials to produce outputs c. An organization that provides health care and is paid a fixed amount per person enrolled in the plan
a. An organization of workers that negotiates as a group with employers over compensation and work conditions
What are the three key characteristics that categorizes all investments? Select one: a. Average expected return, degree of risk and liquidity b. Average expected return, degree of risk and diversification c. None of the above
a. Average expected return, degree of risk and liquidity
What is another name for underground economies? Select one: a. Black Markets b. Microeconomics c. Command economy
a. Black Markets
What is an example of a rational decision? Select one: a. Charge $2,000 on your credit card to buy new clothes to attend your friend's wedding and you have $10 in your savings account b. Pay off the debt c. Neither A or B
a. Charge $2,000 on your credit card to buy new clothes to attend your friend's wedding and you have $10 in your savings account
What is an example of a law of diminishing marginal utility? Select one: a. Consumer buys a total of three slices of pizza at $ 3 each for lunch. The first slice has a high utility. The second slice of pizza consumed provided satisfaction for the hunger the consumer was experiencing. The third slice was less of utility. b. Consumer received a discount on purchasing a cup of coffee on day 1 and return the next day to buy another cup at the regular price c. Neither A or B
a. Consumer buys a total of three slices of pizza at $ 3 each for lunch. The first slice has a high utility. The second slice of pizza consumed provided satisfaction for the hunger the consumer was experiencing. The third slice was less of utility.
The name for this equation is: _________________ = (% change in Qd of good A) (% change in price of good B) Select one: a. Cross-price elasticity of demand b. Income elasticity of demand c. Price elasticity
a. Cross-price elasticity of demand
What is an example of inelasticity good? Select one: a. Diamond ring b. Prescription medication c. None of the above
a. Diamond ring
Economic agreement between countries to allow free trade between members, a common external trade policy, and coordinated monetary and fiscal policies is called . Select one: a. Economic union b. Economic freedom c. Economic policies
a. Economic union
Which term represents this equation? = ((% change in quantity) (% change in price)) >1 Select one: a. Elastic b. Unitary c. Inelastic
a. Elastic
An economics concept that measures responsiveness of one variable to changes in another variable is a called . Select one: a. Elasticity b. Elastic supply c. Elastic demand
a. Elasticity
A___________________is the percentage change in the quantity of savings divided by the percentage change in interest rates. Select one: a. Elasticity of savings b. Inelastic supply c. Perfect elasticity
a. Elasticity of savings
What is another term for surplus? Select one: a. Excess supply b. Excess demand c. Excess quantity
a. Excess supply
What term means dollars having equal value to the individual, regardless of the situation. Select one: a. Fungible b. Income c. Utility
a. Fungible
What is the name of the forum in which nations could come together to negotiate reductions in tariffs and other barriers to trade? Select one: a. General Agreement on Tariffs and Trade (GATT) b. World Trade Organization (WTO) c. Initial public offering (IPO)
a. General Agreement on Tariffs and Trade (GATT)
The ratio of the prices of the two goods should be equal to the ratio of the marginal utilities is called____________. Select one: a. General rule b. Inferior good c. Indifference curve
a. General rule
What is the trend in which buying and selling in markets have increasingly crossed national borders? Select one: a. Globalization b. Macroeconomics c. Microeconomics
a. Globalization
Which inventor created the laser in 1957? Select one: a. Gordon Gould b. Alan Turing c. Neither A or B
a. Gordon Gould
How does most people approach their utility-maximizing combination of choices? Select one: a. In a step-by-step way b. Reviewing high level choices only c. None of the above
a. In a step-by-step way
The name for this equation is: _________________= (% change in quantity of savings) ( % change in interest rate) Select one: a. Income elasticity of demand b. Interest rate elasticity of savings c. Interest rate elasticity of borrowing
a. Income elasticity of demand
The additional satisfaction gained from purchasing a good given the price of the product is . Select one: a. Marginal utility per dollar b. Diminishing marginal utility c. None of the above
a. Marginal utility per dollar
Which is another term used for theory? Select one: a. Model b. Economy c. Market
a. Model
Benefits of a cleaner environment are_________________________. Select one: a. People may stay healthier and live longer; Certain industries that rely on clean air and water may benefit; Property values may be higher; and People may simply enjoy a cleaner environment in a way that does not need to involve a market transaction b. People may stay healthier and live longer; Certain industries that rely on clean air and water may benefit; Property values may be higher; and Companies enjoy a cleaner environment by using marketing tools c. Neither A or B
a. People may stay healthier and live longer; Certain industries that rely on clean air and water may benefit; Property values may be higher; and People may simply enjoy a cleaner environment in a way that does not need to involve a market transaction
What is the definition of inelastic supply? Select one: a. Percentage change in the quantity supplied divided by the percentage change in price. b. The highly inelastic case of demand or supply in which a percentage change in price, no matter how large, results in zero change in the quantity; vertical in appearance. c. When the elasticity of supply is less than one, indicating that a 1 percent increase in price paid to the firm will result in a less than 1 percent increase in production by the firm.
a. Percentage change in the quantity supplied divided by the percentage change in price.
What is another name for zero elasticity? Select one: a. Perfect inelasticity b. Price elasticity c. None of the above
a. Perfect inelasticity
What is the term that economists call when a person experiences no net gain for working? Select one: a. Poverty trap b. Near poor c. None of the above
a. Poverty trap
___________________is when production locates in countries with the lowest environmental (or other) standards, putting pressure on all countries to reduce their environmental standards. Select one: a. Race to the bottom b. Dumping c. Logrolling
a. Race to the bottom
What is the term for the group of government programs that provide assistance to the poor and the near-poor? Select one: a. Safety net b. Price elasticity c. Monopoly
a. Safety net
An increase price in apples have cause consumers to start buying oranges. What is this scenario an example of? Select one: a. Substitution effect b. Budget line c. Equilibrium quantity
a. Substitution effect
What are the three tools for restricting the flow of trade? Select one: a. Tariffs, import quotas, and nontariff barriers b. Tariffs, import quotas, and explicit costs c. None of the above
a. Tariffs, import quotas, and nontariff barriers
What is the national interest argument? Select one: a. The argument that there are compelling national interests against depending on key imports from other nations b. The argument that globalization, new communications and information technology have increased the level of competition that many firms face by increasing the amount of competition from other regions and countries c. None of the above
a. The argument that there are compelling national interests against depending on key imports from other nations
An example of a change in price on consumption. Select one: a. The price of gasoline has increased and consumers have decreased how many gallons of gas purchase b. The price of paper has decreased and the consumer is buying more chairs c. None of the above
a. The price of gasoline has increased and consumers have decreased how many gallons of gas purchase
What is the division of labor? Select one: a. The way one produces a good or service is divided into several tasks that different workers perform, instead of all the tasks being done by the same person. b. Households sell labor to business firms or other employees. c. Many applicants for every job opening, employers will have an incentive to offer lower wages than they otherwise would have.
a. The way one produces a good or service is divided into several tasks that different workers perform, instead of all the tasks being done by the same person.
Satisfaction derived from consumer choices is called . Select one: a. Total utility b. Diminishing marginal utility c. Marginal utility
a. Total utility
A shift in demand is___________. Select one: a. when a change in some economic factor (other than price) causes a different quantity to be demanded at every price b. when a change in some economic factor (other than price) causes a different quantity to be supplied at every price c. when the average cost of producing each individual unit declines as total output increases
a. when a change in some economic factor (other than price) causes a different quantity to be demanded at every price
Which scenario will make the market supply curve shift to the left? Select one: a. A business in the retail industry received a tax break. b. A company in the transportation industry have to pay a fine for their carbon dioxide emissions. c. None of the above
b. A company in the transportation industry have to pay a fine for their carbon dioxide emissions
What is the Theory of Labor Markets? Select one: a. A firm decides to sell stock that financial investors can buy and sell, then the firm is owned by its shareholders b. A firm demands labor because of the value of the labor's marginal productivity. c. None of the above
b. A firm demands labor because of the value of the labor's marginal productivity
What is an example of a shortage? Select one: a. A gasoline company lowering gas prices, because demand is low b. A store increasing the price of toilet paper during a pandemic, because supply is low c. None of the above
b. A store increasing the price of toilet paper during a pandemic, because supply is low
Which is an estate tax? Select one: a. A tax for the poor b. A tax on an inheritance c. A sales tax on goods and services
b. A tax on an inheritance
Which is a way to find utility-maximizing choice on a consumption budget constraint? Select one: a. Choose the lowest total on the budget line b. Add up total utility of each choice on the budget line and choose the highest total c. Divide quantity by utility
b. Add up total utility of each choice on the budget line and choose the highest total
Additional costs incurred by third parties outside the production process when a unit of output is produced is . Select one: a. Additional internal cost b. Additional external cost c. Neither A or B
b. Additional external cost
A mechanism for a saver to deposit funds at a bank and promise to leave them at the bank for a time, in exchange for a higher interest rate is . Select one: a. Initial public offering (IPO) b. Certificate of deposit (CD) c. Neither A or B
b. Certificate of deposit (CD)
Which diagram views the economy as consisting of households and firms interacting in a goods and services market and a labor market? Select one: a. Production possibilities frontier (PPF) b. Circular flow diagram c. Demand and supply diagram
b. Circular flow diagram
Goods that are often used together so that consumption of one good tends to enhance consumption of the other is called . Select one: a. Ceteris paribus b. Complements c. Demand
b. Complements
What is the name of this equation? Select one: a. Equilibrium price b. Consumer equilibrium c. Equilibrium quantity
b. Consumer equilibrium
Which one is an example of intertemporal decision making? Select one: a. Deciding what meal you will buy for dinner b. Deciding on a retirement investment c. Deciding on buying a new article of clothing for a job interview
b. Deciding on a retirement investment
What is the term for when the quantity demanded equals the quantity supplied? Select one: a. Equilibrium price b. Equilibrium c. Equilibrium quantity
b. Equilibrium
Which term is the goods and services that one produces domestically and sells abroad? Select one: a. Imports b. Exports c. Globalization
b. Exports
What is the law of diminishing marginal utility example of ? Select one: a. Fungible b. General law of diminishing returns c. None of the above
b. General law of diminishing returns
Global warming and biodiversity are examples of . Select one: a. Market failure b. International externalities c. Equilibrium quantity
b. International externalities
Which economists pointed out that economics is not just a subject area but also a way of thinking? Select one: a. Esther Duflo b. John Maynard Keynes c. Paul Samuelson
b. John Maynard Keynes
What is the term that means a higher price will decrease the quantity demanded? Select one: a. Quantity demand b. Law of demand c. Law of supply
b. Law of demand
As we consume more of a good or service, the utility we get from additional units of the good or service tends to become smaller than what we received from earlier units is . Select one: a. Law of diminishing returns b. Law of diminishing marginal utility c. Production possibilities frontier (PPF)
b. Law of diminishing marginal utility
What is another term for minimum wage? Select one: a. Equilibrium wage b. Living wage c. Hourly wage
b. Living wage
People who have incomes just above the poverty line are . Select one: a. Rich b. Near-poor c. Poverty trap
b. Near-poor
What is collective bargaining? Select one: a. Economic agreement between countries to allow free trade between members b. Negotiations between unions and a firm or firms c. Economic agreement between countries to allow free trade between members
b. Negotiations between unions and a firm or firms
What is an example of disruptive market change? Select one: a. Junk bond b. New technology c. Venture capital firms
b. New technology
Which of the following is wage elasticity of labor supply? Select one: a. Percentage change in the quantity supplied divided by the percentage change in price b. Percentage change in hours worked divided by the percentage change in wages c. Percentage change in the quantity demanded of a good or service divided the percentage change in price
b. Percentage change in hours worked divided by the percentage change in wages
What is another name for externality? Select one: a. Normal goods b. Pollution emissions
b. Pollution emissions
A__________________is percentage of the population living below the poverty line. Select one: a. Poverty b. Poverty rate c. Poverty trap
b. Poverty rate
The ABC Company's Research & Development (R&D) invested in voice voice recognition technology which increased revenue by 9%. Which benefit is represented in the scenario? Select one: a. Social b. Private c. Neither A or B
b. Private
A_______________is taking income from those with higher incomes and providing income to those with lower incomes. Select one: a. Earned income tax credit (EITC) b. Redistribution c. Perfect elasticity
b. Redistribution
What are two reasons why countries participate in intra-industry trade? Select one: a. Higher price and lower income b. The division of labor leads to learning, innovation, and unique skills; and economies of scale c. Low risk and high profit
b. The division of labor leads to learning, innovation, and unique skills; and economies of scale
What is the definition for factors of production? Select one: a. Manufacturers produce goods where the opportunity cost is lowest, so total production increases, benefiting both trading parties b. The resources such as labor, materials, and machinery that are used to produce goods and services c. The market economy coordinates a process in which firms seek to produce goods and services in the quantity, quality, and price that people want
b. The resources such as labor, materials, and machinery that are used to produce goods and services
What is economics? Select one: a. The branch of economics that focuses on actions of particular agents within the economy, like households, workers, and business firms. b. The study of how humans make choices under conditions of scarcity. c. A market in which firms are sellers of what they produce and households are buyers.
b. The study of how humans make choices under conditions of scarcity
What is the definition of free rider? Select one: a. The body of law including patents, trademarks, copyrights, and trade secret law that protect the right of inventors to produce and sell their inventions. b. Those who want others to pay for the public good and then plan to use the good themselves; if many people act as free riders, the public good may never be provided. c. The benefits a person who consumes a good or service receives, or a new product's benefits or process that a company invents that the company captures.
b. Those who want others to pay for the public good and then plan to use the good themselves; if many people act as free riders, the public good may never be provided
Which elasticity is represented by a straight line? Select one: a. Elastic b. Unitary c. Inelastic
b. Unitary
Satisfaction is measured in a unit called . Select one: a. Demand b. Util c. Marginal utility
b. Util
Which good is non-rival in consumption? Select one: a. A slice of cake b. Watching a television show c. None of the above
b. Watching a television show
What is a index fund? Select one: a. A bond issued by firms that wish to borrow b. A direct payment from a firm to its shareholders c. A mutual fund that seeks only to mimic the market's overall performance
c. A mutual fund that seeks only to mimic the market's overall performance
What is an example of an infinite elasticity product? Select one: a. Book b. Bread c. All of the above
c. All of the above
What is the first rule of labor markets? Select one: a. An employer hires workers higher than the market wage b. An employer pays employees less than a certain hourly rate c. An employer will never pay a worker more than the value of the worker's marginal productivity to the firm
c. An employer will never pay a worker more than the value of the worker's marginal productivity to the firm
What are two groups of private investors? Select one: a. Government and angel investors b. Government and venture capital firms c. Angel investors and venture capital firms
c. Angel investors and venture capital firms
A labor market with a monopsony on the demand side and a union on the supply side is . Select one: a. Monopoly b. Technological monopoly c. Bilateral monopoly
c. Bilateral monopoly
What is the Midpoint Method for Elasticity? Select one: a. Percentage change in the quantity demanded of a good or service divided the percentage change in price b. The percentage change in the quantity of good A that is demanded as a result of a percentage change in good B c. Calculates elasticity along a demand or supply curve and economists use the average percent change in both quantity and price
c. Calculates elasticity along a demand or supply curve and economists use the average percent change in both quantity and price
A_______________is when a given percent price change in price leads to an equal percentage change in quantity demanded or supplied. Select one: a. Elastic demand b. Inelastic supply c. Constant unitary elasticity
c. Constant unitary elasticity
Which term identifies the following:_______________________= (percentage of total taxes paid)/(total income) Select one: a. Quintile b. Lorenz curve c. Effective income tax
c. Effective income tax
A market exchange that affects a third party who is outside or "external" to the exchange is . Select one: a. Negative externality b. Positive externality c. Externality
c. Externality
What is value chain? Select one: a. Spending that benefits mainly a single political district b. Income from selling a firm's product c. How a good is produced in stages
c. How a good is produced in stages
Numerical limits on the quantity of products that a country can import is . Select one: a. Imported goods b. Gross domestic product (GDP) c. Import quotas
c. Import quotas
Which elasticity can be described as not very responsive? Select one: a. Elastic b. Unitary c. Inelastic
c. Inelastic
Complete this equation: ______________ = (change in total utility) / (change in quantity) Select one: a. Maximize utility b. Budget constraint c. Marginal utility
c. Marginal utility
Complet this equation:________________ = (marginal utility) / (price) Select one: a. Marginal utility b. Total utility c. Marginal utility per dollar
c. Marginal utility per dollar
A____________is an institution that brings together buyers and sellers of goods or services, who may be either individuals or businesses. Select one: a. Imports b. Exports c. Market
c. Market
_____________ is a price floor that makes it illegal for an employer to pay employees less than a certain hourly rate. Select one: a. Interest rate b. Scarcity c. Minimum wage
c. Minimum wage
_____________ is a price floor that makes it illegal for an employer to pay employees less than a certain hourly rate. Select one: a. Interest rate b. Scarcity c. Minimum wags
c. Minimum wags
A nation's central bank conducts _______________, which involves policies that affect bank lending, interest rates, and financial capital markets. Select one: a. Fiscal policy b. Trade policy c. Monetary policy
c. Monetary policy
Which type labor market has only one employer? Select one: a. Free market b. Trade barrier c. Monopsony
c. Monopsony
Which type of bond is issued by cities that wish to borrow? Select one: a. Junk bond b. Treasury bond c. Municipal bond
c. Municipal bond
A situation where a third party, outside the transaction, suffers from a market transaction by others is . Select one: a. Positive externality b. International externality c. Negative externality
c. Negative externality
What is a free trade agreement? Select one: a. Economic policies that involve government spending and taxes b. Government policies to reduce or block imports c. Neither A or B
c. Neither A or B
Which one of the services is an example of nonexcludable? Select one: a. Private education b. Fitness center c. Neither A or B
c. Neither A or B
Which one is an example of a positive externality? Select one: a. Air pollution caused by a manufacturing plant that is harmful to the community b. Water contamination of rivers from runoffs of animal waste c. None of the above
c. None of the above
Goods and services are______________________when a rise in income leads to a rise in the quantity consumed of that good and a fall in income leads to a fall in quantity consumed. Select one: a. Inferior goods b. Goods and services c. Normal goods
c. Normal goods
Which term describes the world how it should be? Select one: a. Positive statement b. Marginal analysis c. Normative statement
c. Normative statement
What is another name for infinite elasticity? Select one: a. Price elasticity b. Unitary elasticity c. Perfect elasticity
c. Perfect elasticity
The specific amount of income one requires for a basic standard of living is . Select one: a. Poverty rate b. Poverty trap c. Poverty line
c. Poverty line
The ratio between the percentage change in the quantity demanded (Qd) or supplied (Qs) and the corresponding percent change in price is a called . Select one: a. Wage elasticity b. Unitary elasticity c. Price elasticity
c. Price elasticity
What is the extra benefit producers receive from selling a good or service, measured by the price the producer actually received minus the price the producer would have been willing to accept is called? Select one: a. Social surplus b. Consumer surplus c. Producer surplus
c. Producer surplus
What is the definition of dumping? Select one: a. The trend in which buying and selling in markets have increasingly crossed national borders b. The extra benefit producers receive from selling a good or service, measured by the price the producer actually received minus the price the producer would have been willing to accept c. Selling internationally traded goods below their cost of production
c. Selling internationally traded goods below their cost of production
Which term is when workers or firms focus on particular tasks for which they are well-suited within the overall production process? Select one: a. Theory b. Economy c. Specialization
c. Specialization
When a price changes, consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price; always happens simultaneously with an income effect is . Select one: a. Income effect b. Consumer equilibrium c. Substitution effect
c. Substitution effect
The relationship between price and the quantity supplied of a certain good or service is . Select one: a. Interest b. Demand c. Supply
c. Supply
What is the definition of tariffs? Select one: a. Cost of production that increases with the quantity produced b. Manner in which the tax burden is divided between buyers and sellers c. Taxes that governments place on imported goods
c. Taxes that governments place on imported goods
What is the definition of wealth? Select one: a. A flow of money received, often measured on a monthly or an annual basis b. The situation of being below a certain level of income one needs for a basic standard of living c. The sum of the value of all assets, including money in bank accounts, financial investments, a pension fund, and the value of a home
c. The sum of the value of all assets, including money in bank accounts, financial investments, a pension fund, and the value of a home
Which inventor holds the record for the most patents granted to an individual? Select one: a. Eli Whitney b. Arthur Zang c. Thomas Edison
c. Thomas Edison
Organization that seeks to negotiate reductions in barriers to trade and to adjudicate complaints about violations of international trade policy is called . Select one: a. United Nations r, Scientific, and Cultural Organization (UNESCO) b. Organization of Petroleum Exporting Countries (OPEC) c. World Trade Organization (WTO)
c. World Trade Organization (WTO)
A demand curve is . Select one: a. a table that shows a range of prices for a certain good or service and the quantity demanded at each price b. a diagram that views the economy as consisting of households and firms interacting in a goods and services market and a labor market c. a graphic representation of the relationship between price and quantity demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis
c. a graphic representation of the relationship between price and quantity demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis
What is the definition for usury laws? Select one: a. a table that shows a range of prices for a certain good or service and the quantity demanded at each price b. a diagram that views the economy as consisting of households and firms interacting in a goods and services market and a labor market c. government imposes an upper limit on the interest rate that lenders can charge consumers when receiving a loan.
c. government imposes an upper limit on the interest rate that lenders can charge consumers when receiving a loan
What is utility? Select one: a. when a country can produce a good at a lower cost in terms of other goods; or, when a country has a lower opportunity cost of production b. gas, electricity and water bills c. satisfaction, usefulness, or value one obtains from consuming goods and services
c. satisfaction, usefulness, or value one obtains from consuming goods and services
