Econ Chapter 1 Quiz
Carl is considering attending a concert with a ticket price of $35....
$85
Kate takes a part time job and the sacrifice of study time causes her grade point average to fall from 3.5 to 2.9. Assume that the grade point average would have stayed at 3.5 if study time had not been reduced. The opportunity cost of having taken the job is
0.6 decrease in the grade point average
Who said that compound interest was the greatest discovery of their time?
Albert Einstein
Consider an economic model designed to analyze the behavior of business firms. An assumption that the goal of the firms is to maximize profit would be
a critical assumption
A newspaper headline announces "that more college graduates than ever are in this labor force". This is an example of
a positive statement
Due to resource scarcity,
all economic activities have an opportunity cost
What does economics have in common with sociology?
both are social sciences
A critical assumption assumption differs from a simplifying assumption in that a critical assumption
can affect the conclusions of the model
All of the following are examples of constraints faced by decision except one. Which is the exception?
consumer wants
The knowledge that students gain while in college is referred to by economists as human capital
false
A critical assumption
has an important impact on the conclusions of an economic model
Positive economics deals with
how the economy does work
A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this influence the opportunity cost for a player who was considering giving up basketball to pursue a career in broadcasting?
it would increase the opportunity cost of becoming a broadcaster
Society's resources include
land, labor, and capital
Opportunity cost exists because
limited resources cannot satisfy all of the wants in society
Because economists have different values, like everyone else, they
may disagree, even though economic theory is based on positive statements
Company has a market capitalization of $10 billion, how might we categorize the company?
mid cap
Entrepreneurship is typically identified with which of the following?
risk-taking and creativity
Economics is the study of choice under conditions of
scarcity
The core problem faced by all economic systems is that
scarcity forces each of us to make choices
An economic model
simplifies reality in order to focus on crucial elements
In order to eliminate unnecessary details and highlight the essential features of an economic model, an economist makes
simplifying assumptions
Name the three rating agencies that offer ratings on bonds
standard and poor's, and Moody and Fitch
Risk in a portfolio is best measured using which of the following?
standard deviation
The best economic theory is the one
that yields the most accurate predictions
Which of the following is a normative statement?
the extent of income inequality in the United States is unjust
Individuals face opportunity costs because
time and funds are scarce
Macroeconomics studies the determination of
total output, total employment, the general price level, and the general level of interest rates
The ticker symbol for stock list on the New York Stock exchange have symbols of 4 letters or less
true
Normative economics deals with
value judgements
