Ch1 Smartbook for Econ + Quiz 1

Suppose an economy produces consumer goods and capital goods. Its current combination of production involves a higher level of capital goods than consumer goods. Which of the following can be inferred from this current choice on its production possibilities curve? Multiple choice question. That its present choice in production has no effect on future prospects for economic growth That its present choice in production may result in lower future prospects for economic growth That its present choice in production may result in higher future prospects for economic growth That its future choice in production may result in higher present prospects for economic growth

That its present choice in production may result in higher future prospects for economic growth

Select all that apply Which of the following are issues most explored in microeconomics? Multiple select question. The expenditures of a government entity Measuring the price of specific goods The level of public debt Measuring total revenues of a firm Unemployment and inflation rates

The expenditures of a government entity Measuring the price of specific goods Measuring total revenues of a firm

A production possibilities curve with an increasing slope is the result of which of the following? Multiple choice question. The other-things-equal assumption The economizing problem The scarcity of resources The law of increasing opportunity costs

The law of increasing opportunity costs

Which best defines utility? Multiple choice question. The satisfaction or pleasure obtained from consuming a good or service The utilization of economic resources by producers when engaging in production The satisfaction or pleasure obtained from producing a good or service The utilization of economic resources by consumers when engaging in consumption

The satisfaction or pleasure obtained from consuming a good or service

Which best defines utility? Multiple choice question. The satisfaction or pleasure obtained from producing a good or service The utilization of economic resources by consumers when engaging in consumption The satisfaction or pleasure obtained from consuming a good or service The utilization of economic resources by producers when engaging in production

The satisfaction or pleasure obtained from consuming a good or service

True or false: A decrease in income will shift the budget line to the left.

True

True or false: A trade-off occurs when some quantity of production of a good is given up in order to produce another good.

True

When economists refer to scarcity, they are referring to Multiple Choiceanytime an item is limited in amount.a situation where what we want exceeds what we have.a situation where what we have exceeds what we want.the ability of a good to satisfy wants.

a situation where what we want exceeds what we have.

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $2.00 and the price of a banana is $1.00. This means that, in order to buy six bananas, this consumer must forgo Multiple Choice6 apples.2 apples.0.8 apples.3 apples.

3 apples?

Suppose you are given a $100 gift card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximizes your satisfaction. Your choices will involve which of the following? Multiple choice question. A decision between attainable and unattainable combinations of the goods under consideration The available supply of each good considered A comparison of marginal benefits and marginal costs for each good considered An evaluation of the unlimited resources used in the production of each good considered

A comparison of marginal benefits and marginal costs for each good considered

Which of the following describes a budget line? Multiple choice question. A schedule showing various combinations of three or more products a consumer can purchase at different prices. A curve showing various combinations of two products an economy can produce with a specific amount of resources. A curve showing various combinations of three or more products a consumer can purchase at different prices. A curve showing various combinations of two products a consumer can purchase with a specific amount of income.

A curve showing various combinations of two products a consumer can purchase with a specific amount of income.

A point that lies inside the production possibilities curve reflects which of the following? Multiple choice question. Unattainable combinations of output An efficient use of resources Too many resources being allocated to the production of one good A failure to achieve full employment

A failure to achieve full employment

Which of the following enables society to produce more goods with current resources? Multiple choice question. Decreases in labor Increases in population Decreases in entrepreneurial ability Advances in technology

Advances in technology

Select all that apply Which of the following are ways of expressing the meaning of ceteris paribus? Multiple select question. Assuming factors other than those being considered in a particular analysis do not change Assuming other things are equal Assuming additional factors, other than those under consideration, play a significant role in analysis Assuming additional factors, other than those under consideration, are given equal consideration

Assuming factors other than those being considered in a particular analysis do not change Assuming other things are equal

If economists examine the relationship between the price of a good and sales of that good while ignoring other related factors, or assuming those other factors are equal, they are using which of the following? Multiple choice question. Ceteris paribus Marginal costs The scientific method Scarcity theory

Ceteris paribus

True or false: Everyone except for the super wealthy has a finite, or limited, amount of income.

False

True or false: Positive economics encourages value judgments.

False

True or false: Economists use the terms "capital" and "money" interchangeably.

False bc The term "capital" as used by economists does not refer to money.

Which of the following is a result of having scarce economic resources for the production of goods and services? Multiple choice question. The production of unlimited goods and services Fewer options that require choices Poverty and unequal distribution of wealth Deflation

Fewer options that require choices

Which of the following is a result of having scarce economic resources for the production of goods and services? Multiple choice question. The production of unlimited goods and services Poverty and unequal distribution of wealth incorrect Fewer options that require choices Deflation

Fewer options that require choices

When a country engages in international specialization, it focuses on producing which of the following? Multiple choice question. Goods with the highest opportunity costs Goods whose marginal costs exceed their marginal benefits Goods that minimize utility Goods with the lowest opportunity costs

Goods with the lowest opportunity costs

______ comes in the form of wages, interest, rent, profit, and even from government programs. Multiple choice question. Spending Taxes Income Transfers

Income

Specializing and participating in international trade allows an economy to do which of the following? Multiple select question. Increase the quantities of capital and consumer goods available to society Get more of a desired good by sacrificing greater amounts of some other good Circumvent the output limits imposed by its own production possibilities curve Divert high-skilled resources toward low-valued services

Increase the quantities of capital and consumer goods available to society Circumvent the output limits imposed by its own production possibilities curve

Which of the following can be stated as potentially true about any economy? Multiple choice question. Its current choice of position on its production possibilities curve helps determine the curve's future location. Increased supplies of the factors of production will only affect its current location on its production possibilities curve. Increased supplies of the factors of production will cause its future location on the curve to expand inward. Its future location on its production possibilities curve has no bearing on its current decisions.

Its current choice of position on its production possibilities curve helps determine the curve's future location.

What do economists call the physical actions and mental activities that people contribute to the production of goods and services? Multiple choice question. Capital Labor Investment Entrepreneurial ability

Labor

(Microeconomics/Macroeconomics) is the discipline that examines the performance and behavior of an economy as a whole.

Macroeconomics

Which discipline studies the economy as a whole or its basic subdivisions or aggregates? Multiple choice question. Normative economics Positive economics Macroeconomics Microeconomics

Macroeconomics

Which discipline studies the decision-making process of customers, workers, households, and business firms on an individual basis rather than as aggregates? Multiple choice question. Macroeconomics Positive economics Negative economics Microeconomics

Microeconomics

Select all that apply Which of the following resources would be considered to be land by an economist? Multiple select question. Oil and mineral deposits Arable land Forests Water Factories

Oil and mineral deposits Arable land Forests Water

Which of the following illustrates the attainable combination of two goods that can be produced given a specific set of resources? Multiple choice question. Demand and supply curve model Budget constraint Production possibilities curve Opportunity cost Budget line

Production possibilities curve

______ economic resources means limited goods and services. Multiple choice question. Insatiable Physical Tangible Scarce

Scarce

Positive economics Blank______ value judgments, tries to establish Blank______ statements about economic behavior, and deals with Blank______ economic events. Multiple choice question. avoids; normative; actual encourages; normative; potential avoids; scientific; actual encourages; scientific; actual encourages; scientific; potential

avoids; scientific; actual

A person should consume more of something when its marginal Multiple Choicebenefit exceeds its marginal cost.cost exceeds its marginal benefit.cost equals its marginal benefit.benefit is positive.

benefit exceeds its marginal cost.

A consumer's _____ line or constraint shows various combinations of two products that can be purchased with a specific amount of income. Need help? Review these concept resources.

budget

All natural resources, human resources, and manufactured goods that go into the production of goods and services are considered as society's scarce ____resources.

economic

The ______problem refers to the need to make choices because economic wants exceed economic means. (Enter one word in the blank.)

economizing

The work-related activities of a teacher and doctor fall under the resource category of ___

labor or labour

From an economic standpoint, Blank______ includes all natural resources used in the production process. Multiple choice question. capital land supply labor

land

Economists do not include money as an economic resource because Blank______. Multiple choice question. currency and coins are easily lost or destroyed the value of money is constantly fluctuating of its difficulty in valuating due to many world currencies money produces nothing

money produces nothing

Improvements in the methods of production allows for the creation of Blank______. Multiple choice question. fewer goods with fewer resources fewer goods with more resources more goods with available resources the same amount of goods utilizing more resources

more goods with available resources

A production possibilities curve (PPC) illustrates the attainable combination Blank______, Multiple choice question. of two goods that can be produced given a limited amount of income of two goods that can be produced given a specific set of resources of many goods that can be produced given an unlimited amount of resources of two goods that can be produced given an unlimited amount of resources

of two goods that can be produced given a specific set of resources

Purposeful behavior suggests that Multiple Choicepeople are immune from faulty logic.people weigh benefits and costs to try and achieve the best outcomes.people actively avoid making personal sacrifices.decisions are unaffected by emotion.

people weigh benefits and costs to try and achieve the best outcomes.

Unemployment in the economy is graphically represented by Blank______ the production possibilities curve. Multiple choice question. a rightward shift of a movement outside points inside a change to a new point on

points inside

This Blank______ table lists the different combinations of pizza and robots that can be produced with a specific set of resources. Production AlternativesType of ProductABCDEPizzas (in hundred thousands)01234Robots (in thousands)109740 Multiple choice question. product budget production possibilities production function budget possibilities

production possibilities

A Blank______ lists the different combinations of two products that can be produced with a specific set of resources, assuming full employment. Multiple choice question. production function production possibilities table consumption function budget table

production possibilities table

When an economy produces a good such that the marginal benefit equals the marginal cost, this indicates that Blank______. Multiple choice question. society would be better off by increasing the output of the good resources are being allocated efficiently society's well-being would increase by decreasing the output of the good the unemployment rate is at its minimum

resources are being allocated efficiently

Land and mineral resources, transportation and communication facilities, factories and farm buildings, equipment, tools and machinery are all examples of Blank______. Multiple choice question. scarce economic resources unlimited economic resources economic growth insatiable wants

scarce economic resources

An increase in income will Blank______. Multiple choice question. cause a movement down the budget line cause a movement up the budget line shift the budget line to the left shift the budget line to the right

shift the budget line to the right

The construction of a production possibilities curve assumes Multiple Choicethere is no inflation in the economy.technology is fixed.some resources are unemployed.the quantities of all resources are unlimited.

technology is fixed.

Your next-door neighbors want to go on a European vacation but cannot afford it, so they decide to visit a local amusement park instead. This is an example of Blank______. Multiple choice question. a hypothesis the economizing problem ceteris paribus the utility problem

the economizing problem

The outward bowing shape of the production possibilities curve is due to Blank______. Multiple choice question. the law of increasing opportunity costs the law of decreasing opportunity costs the law of diminishing marginal utility the diminishing marginal benefits

the law of increasing opportunity costs

The optimal allocation of resources occurs when Blank______. Multiple choice question. the production of the two goods is equal the marginal benefit of the good is greater than the marginal cost the marginal benefit of the good equals the marginal cost the marginal cost of producing the good is equal to zero

the marginal benefit of the good equals the marginal cost

In this figure, obtaining more books by giving up some movies is called a(n) Blank______; whereas losing two books in order to gain 1 movie is referred to as Blank______ cost. Multiple choice question.

trade-off; an opportunity

People desire goods and services that provide maximum utility. In fact, our desires or wants are Blank______. Multiple choice question. limited unlimited supply-driven reasonable

unlimited

The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as ____. (Enter one word in the blank.)

utility

For better or worse, people have Blank______. Multiple choice question. few unsatisfied wants virtually unlimited wants extremely limited desires virtually unlimited income

virtually unlimited wants

Because consumers behave in a rationally self-interested manner, they will purchase a good or service Blank______. Multiple choice question. when opportunity costs are greater than marginal benefits when the marginal benefit is greater than the marginal cost by examining only marginal costs by examining only marginal benefits

when the marginal benefit is greater than the marginal cost