ECON 201B Exam 1
Which of the following lists includes only capital resources ?
Autos owned by a car rental firm; computers at the Hertz car rental agency; the vans that shuttle rental customers to and from the airport
Which of the following is a normative economic statement?
Government must maintain the current level of defense spending to keep the nation safe
Which of the following best explains the difference between neoclassical economics and behavioral economics?
Neoclassical economics assumes that people are rational in their decision making, while behavioral economics believes people make systematic errors.
Sue wants to buy the latest novel by her favorite author. The economic perspective suggests that Sue will buy the book if
The marginal benefit of the book the is more than its marginal cost
Which of the following will not produce an outward shift of the production possibilities curve?
The reduction of unemployment
The process of observing real-world behavior, developing hypotheses, testing them against facts, then using the results to construct theories is called:
The scientific method
Which of the following exemplifies a microeconomic question?
Will a new type of electronic reader or tablet increase the number of buyers?
microeconomics
choices made by individuals firms and industries
waiters and waitresses are considered what in econ?
labor
lettuces and fresh vegetables are considered what in econ?
land
Answer the question on the basis of the data given in the following production possibilities table: Refer to the table. For these data, the law of increasing opportunity costs is reflected in the fact that:
larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods.
this demand determinant has consistent stability, making decisions way easier in terms of investments
number and composition of consumerst
an oven and gas range is considered what in econ?
physical capital
The downward slope of the demand curve again illustrates the pattern that as _________________ rises, _________________ decreases.
price, quantity demanded
When economists say that people act rationally in their self-interest, they mean that individuals:
pursue opportunities to increase their utility
refers to the total number of units that are purchased by consumers at a specific price
quantity demanded
When economists talk about supply, they are referring to a relationship between price received for each unit sold and the _________________ .
quantity supplied
factors of production
resources used to make goods and services
macroeconomics
studies the economy as a whole
Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This behavior can best be explained as
the marginal benefit of reading a second newspaper is less than the marginal cost
According to the law of supply:
there is a direct relationship between price and the quantity supplied.
Brianna says that "gas prices are rising because there aren't enough oil refineries." Claire argues that "gas prices are rising because of the growing demand for gasoline in the U.S." We can conclude that:
Both statements are positive
Along a linear downward-sloping demand curve, the price elasticity of demand will be:
Different across each price range
Which of the following is a positive economic statement?
Stock prices rose to new record in the last month for the fourth month in a row
rational self interest
assumption that humans will make choices to maximize their utility
the price elasticity of demand coefficient measures
buyer responsiveness to price changes
What are the economic goals of the United States?
economic growth, low unemployment, and low inflation
a restaurant owner is considered what in econ?
entrepreneurial ability
culinary school is considered what in econ?
human capital