quiz

Mikki decides to work five hours the night before her economics exam. She earns an extra $75, but her exam score is 10 points lower than it would have been had she stayed home and studied. Her opportunity cost is the:

10 points she lost on her exam

Which of the following is not a determinant of demand?

A change in resource prices.

If the item in question is T-shirts, which of the following is not a determinant of supply?

The price of the cotton used to make the shirt

In Europe during the 14th century, the Black Plague killed 24 million people or close to 37 percent of the population. How would this affect the production possibilities curves for the countries of Europe at that time?

The production possibilities curves for these countries would have shifted inward.

When deciding whether to buy a second car, marginal analysis indicates that the purchaser should compare the:

additional benefits of the second car with the additional cost of the second car.

According to the law of supply:

more of a good will be offered by suppliers as the price rises.

According to marginal analysis, you should choose to do something if the extra benefit:

outweighs the extra cost.

In a market economy:

profit provides an incentive to be productive.

A supply schedule shows the relationship between:

quantity supplied and price.

A production possibility graph slopes down because of:

the law of increasing costs.

The opportunity cost of an activity means the:

the value of the best alternative that must be sacrificed in order to engage in the activity.

law of demand

there is a direct relationship between the price of a good and the quantity of the good produced.

Which of the following is included in the study of macroeconomics?

unemployment in the nation

Economics indicates that our behaviors are driven by our:

wants

An increase in the quantity demanded of a good is most often due to:

lower prices.

Which of the following is an example of scarcity?

Camden would like to have more designer clothes than he can afford.

The economic system that answers the What, How and For Whom questions using prices determined by a dictator or central authority is a:

Command economy

Which of the following is not an example of an economic resource?

Dollars.

An economist at the University of Alaska at Anchorage has been asked to explain why the price of Alaskan crude oil has fallen recently. In order to develop a model, the professor should take which steps?

Identify the problem, develop a model based on simplifying assumptions and test the model to formulate a conclusion.

Bias may be defined as:

Making arguments that make selective use of the facts, generally by presenting only one side of the story.

Which fundamental economic question requires society to choose the technological and resource mix used to produce goods?

The How to Produce question

The question "Should more capital goods be produced instead of consumer goods?" is an example of which fundamental economic question? You Answered

The What to Produce question.

The subject of economics is primarily the study of:

decision-making because of the problem of scarcity.

When economists say scarcity, they mean:

human wants exceed the available supply of time, goods and resources.

a supply curve

illustrates the positive relationship between price and quantity supplied.

The mental and physical capacity of workers to produce goods and services is known as:

labor