Module One Quiz
The development of a new good or a new process for making a good is called: A. A service B. An invention C. A factor of production D. An innovation
B
Which of the following is a macroeconomics question? A. What determines the production of DVDs B. What determines the wage of auto workers C. What factors determine the price of carrots D. What determines the inflation rate
D
go to module assignment one question 4
go to module assignment one question 4
go to module assignment one question nineteen
go to module assignment one question nineteen
go to module assignment one question seven
go to module assignment one question seven
If the marginal cost of keeping a doctor's office open one additional hour per day is $200, then the doctor should keep the office open for one extra hour: A. Only if the marginal benefit she receives is greater than $200 plus an acceptable profit margin B. As long as the marginal cost does not rise C. Until the marginal benefit she receives reaches zero D. As long as the marginal benefit she receives is just equal to or greater than $200
D
On a two-dimensional graph, _____ allows for the effects of additional variables. A. Adding an additional curve B. Moving along a curve C. Eliminating a curve D. Shifting Curves
D
Which of the following is a positive economic statement? A. The standard of living in the United States should be higher B. The government should revamp the health care system C. The U.S. government should not have bailed out U.S. auto manufacturers D. If the price of iPhones falls, a larger quantity of iPhones will be purchased
D
____ is a situation in which a good or service is produced at the lowest possible cost. A. Equity B. Optimal marginalism C. Allocative Efficiency D. Productive Effieciency
D
In economics, the accumulated skills and training that workers have is known as: A. Human Capital B. Innovation C. Physical Capital D. Entrepreneurship
A
Arlene quit her $125000-a-year job to take care of her ailing parents. What is the opportunity cost of her decision? A. The value she attributes to the satisfaction she receives from taking care of her parents B. At least $125000 C. It depends on the "going rate" for home-care providers D. Zero, since she will no longer be earning a salary
B
Suppose that some investors have decided that economic and financial uncertainty have made the prospect of investing in domestic stock markets more risky than investing in foreign stock markets, and therefore choose to invest in foreign markets. By using all available information to achieve their goals, these investors are exemplifying the economic idea that: A. People are rational B. People respond to economic incentives C. Optimal decisions are made at the margin D. Equity is more important that efficiency
A
Which of the following statements is true about scarcity? A. Scarcity refers to the situation in which unlimited wants exceed limited resources B. Scarcity is only a problem when a country has too large a population C. Scarcity is not a problem for the wealthy D. Scarcity arises when there is a wide disparity in income distribution
A
_______ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production. A. Competition B. Equity C. Voluntary Exchange D. Centrally Planned Economy
A
Pookie's Pinball Palace restores old Pinball machines. Pookie has just spent $300 purchasing and cleaning a 1960s-era machine which he expects to sell for $2000 once he is finished with the restoration. After having spent $300, Pookie discovers that he will need to rewire the entire machine at a cost of $1100 in order to finish the restoration. Alternatively, he can sell the machine "as is" now for $1000. What should he do? A. He should rewire the machine, complete the task and then sell the machine B. He should sell the machine now for the most profit C. He should have never purchased the machine because he has already spent too much time on it and has not been paid for in that time D. It does not matter what he does; he is going to take a loss on his project
B
Society faces a trade-off in all of the following situations except: A. When deciding who will receive the goods and services produced B. When some previously unemployed workers find jobs C. When deciding what goods and services will be produced D. When deciding how goods and services will be produced
B
In 2013, Smileytown consumed 12000 gallons of mouthwash. In 2014, mouthwash consumption rose to 17000 gallons. Calculate the percentage change in mouthwash consumption. A. 17.2% B. 29.4% C.41.7% D. 70.6%
C
The term _____ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade. A. Trade-Off B. Collective C. Market D. Cooperative
C
The town of Harmonia gives away all 500 tickets to its annual Founder's Day Free Concert-in-the-Park to local residents. Each year, more than 500 people wish to attend the concert, so some of the residents who receive the free tickets sell them for as much as $75 each. Is a transaction where someone pays a resident $75 for a "free ticket" economically efficient? A. No, the buyer paid too much for the ticket B. Yes, it is efficient only from the perspective of the seller and not from the perspective of the buyer C. Yes, it was a voluntary exchange that benefited both parties D. No, people should never be allowed to sell items they received for free
C
Voluntary Exchange _____ economic efficiency because neither the buyer nor the seller would agree to trade unless _____. A. Increases; Only one party benefits B. Decreases; They both benefit C. Increases; They both benefit D. Decreases; Neither benefit
C