Pearson Sample Quiz CH 1-A
_______ is an example of a good. _______ is an example of a service.
A hockey puck; drycleaning
Which of the following items is an example of a tradeoff? A. A school board spends more on teachers and more on computers. B. A school board spends more on teachers and less on computers. C. A school board spends the same amount on teachers and computers. D. A school board spends less on teachers and less on computers.
A school board spends more on teachers and less on computers.
Which of the following pairs match? _______ is an example of _______. A. A cement mixer; labor B. An auto worker; land C. The redwood forests; capital D. Bill Gates; entrepreneurship
Bill Gates; entrepreneurship
Think about the self-interest and the social interest. Which of the following statements is correct?
Choices that are the best for society as a whole are in the social interest
Choose the statement about incentives that is incorrect. A. Incentives create scarcity. B. With stiffer penalties for fraud, company directors have an incentive to play by the rules. C. If the price of soda falls, a child has an incentive to buy more soda. D. An incentive can be a reward that encourages an action.
Incentives create scarcity.
Choose the statement about incentives that is incorrect.
Incentives have no effect on choices
Which of the following statements is correct? A. For a given goal, economics compares the total benefit of achieving the goal with its total cost to find the best use of the available resources. B. Policy questions involve a blend of positive and normative questions. C. Governments can make better decisions by using the tools of economics, but businesses require the tools of business administration, not economics. D. Economics can help with the normative part of a policy goal.
Policy questions involve a blend of positive and normative questions.
Suppose that when you pick apples for 3 hours, you pick 8 baskets of apples. If you pick apples for an extra hour, you pick a total of 10 baskets. Which of the following statements about marginal benefit and marginal cost is correct?
The marginal benefit of picking apples one more hour is 2 baskets.
Suppose that when a television assembly line runs for 6 hours, it produces 120 televisions. If the assembly line runs for one more hour, it produces a total of 130 televisions. Which of the following statements about marginal benefit and marginal cost is correct?
The marginal benefit of running the assembly line one more hour is 10 televisions.
Suppose that when you study 4 hours for an exam, your mark is 80 percent. If you study for an extra hour, your mark is 85 percent. Which of the following statements about marginal benefit and marginal cost is correct?
The marginal benefit of studying one more hour is 5 percent.
Which of the following topics is NOT a macroeconomic question?
Would a higher alcohol tax decrease the quantity sold?
What is Economics? Economics is _______.
a subject that is divided into microeconomics and macroeconomics
What does it mean to say that a person is making a rational choice? A rational choice _______.
achieves the greatest benefit over cost for the person making the choice
Consider the income earned by the people who sell the services of the factor of production. Which of the following pairs is correct? The income earned by the people who sell the services of the factor of production _______ is called _______.
capital; interest
Which of the statements about human capital is correct? Human capital _______.
determines the quality of labor AND grows as people gain work experience
Which of the following statements about entrepreneurship is correct? Entrepreneurship ______.
earns profit
For the past year, Andre has played tennis once a month. He now decides to play tennis twice a month. What does this tell you about Andre's marginal benefit or marginal cost of tennis? For Andre, _______.
either the marginal benefit of a game of tennis has increased or the marginal cost has decreased
When is resource use efficient? Resource use is efficient when _______.
it is not possible to make someone better off without making someone else worse off
Consider the income earned by the people who sell the services of the factor of production. Which of the following pairs is correct? The income earned by the people who sell the services of the factor of production _______ is called _______.
labor; wages
How do the earnings of economics majors compare with other majors? Economics majors earn _______.
less than petroleum engineering majors and operations research majors but more than most other majors
You want to watch football and play cards. You think hard about how to allocate the next hour between watching football and playing cards and decide to watch football for the first 50 minutes and then spend 10 minutes playing cards. What does your decision illustrate? Your decision illustrates _______.
making a choice at the margin
Suppose you always study 5 evenings for an exam, but this week you decide to study for one more evening. What do we know about one more evening of studying? The _______ of one more evening of studying is _______.
marginal cost; an evening with friends, if that is the best alternative use of the time
Suppose a concert pianist practices the piano for 6 hours every day, but to prepare for an upcoming concert, she decides to practice an extra hour. What do we know about one more hour of practicing ? The _______ of one more hour of practicing is _______.
marginal cost; an hour of reading, if that is the best alternative use of the time
What is the type of job most often held by people with an economics major? Most of the jobs held by people with an economics major are as _______.
market research analysts
Are either or both of these newspaper headlines positive or normative? 1. The minimum wage should be increased. 2. Gasoline engines pollute urban air. Statement 1 is a _______ statement because it _______ be tested.
normative; cannot positive; can
What does it mean do say that you make a choice in your self-interest? When you make a choice in your self-interest, _______.
that choice may also be the best choice for society
What are goods and services? Give an example of each. Goods and services are ______.
the objects that people value and produce to satisfy human wants
What is your opportunity cost of remaining in school? By remaining in school, you are paying an opportunity cost that includes _______.
time you could have been playing soccer instead of studying AND wages you could have earned if you took a job
Every day we make many choices. Why is making choices inevitable? We can't avoid having to make choices because _______.
we face scarcity AND we don't have the time to do all the things we want to do
What choices does economics explain? Economics explains the choices that end up determining _______ goods and services get produced.
what, how, and for whom