Microeconomics, Ch. 1
D
Refer to the above graph. Which point in the graph would allow a simultaneous increase in the production of both investment and consumer goods? A.) A B.) B C.) C D.) D
B
Economic systems differ from one another based on who own the factors of production and: A.)How much resources are available in the economy and where they are located B.)Who make decisions regarding what to produce and how it is produced C.)What kinds of products are produced in the economy and how plentiful they are D.)How big the population is, and the makeup of the population
D
Economists have difficulty applying the scientific method because: A.)Economics has a short history B.)The scientific method does not really apply to economics C.)People are the focus of economics, and their behavior is highly predictable D.)Controlled laboratory experiments in economics are often not feasible
B.
As a consequence of the problem of scarcity: A.) There is never enough of anything B.)Individuals have to make choices from among alternatives C.)Only some people can "have it all" D.)Things which are plentiful have relatively high prices
D
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 $1.50 and the price of a banana is $0.75. Refer to the information given above. What is the slope of the budget line, if the quantity of apples were measured on the horizontal axis and bananas on the vertical axis? A.) -0.5 B.) -0.8 C.) -1.6 D.) -2.0
C
Capitalism gets its name from the fact that capital resources are mostly: A.)Owned by the state or government B.)Given the highest priority in the economy's income distribution C.)Treated as private property D.)n the form of money and financial resources
A
Consumers express self-interest when they: A.)Seek the lowest price for a product B.)Reduce business losses C.)Collect economic profits D.)Exclude others in their thinking
B
If the opportunity cost of producing extra units of one good (expressed in terms of the amount of another good given up) remains constant, then the shape of the production possibilities curve is: A.)A straight horizontal line B.)A straight downward-sloping line C.)An upward-sloping line D.)A vertical line
B
Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit. Refer to the above table. If the price of labor declines from $3 to $2 per unit, then what is the least costly way of producing Zenias? A.) A B.) B C.) C D.) D
C
The government may impose industrial safety regulations and occupational licensing requirements in which of the following economic systems? A.)Laissez-faire economy B.)Pure capitalism C.)Mixed market economy D.)Macroeconomic system
C
The market economy is regarded as "efficient" in that: A.)It achieves the lowest rate of unemployment B.)It leads to the lowest level of poverty in the society C.)It directs resources towards products that the society wants most D.)It puts the best people in government positions
A
The question below are based on the following four sets of data-pairs: (1) A and B, (2) C and D, (3) E and F, and (4) G and H. In each set, the independent variable is in the left column and the dependent variable is in the right column. A.) 1 and 3 B.) 2 and 3 C.) 3 and 4 D.) 2 and 4
D
Which of the following best describes the "invisible hand" concept? A.)Ample regulation of business by the government will maximize the public's best interests B.)The market system works best when resources are free to move from one use to another C.)The problem of scarcity can best be overcome in a system of mixed capitalism D.)Self-interest in a market system will automatically promote the public interest as well
D
Which of the following statements about the right to private ownership is false? A.)It enables individuals to obtain, use, and dispose of land and capital resources as they see fit B.) It encourages investment and innovation, and thus fosters economic growth C.)It extends to intangibles such as pieces of music and computer programs D.)It weakens the incentive to maintain the property that one already owns
A
Which question is an illustration of a microeconomic question? A.)Is the volume of wine produced in one year dependent upon the price of wine? B.)Does government spending influence interest rates in the economy? C.)Is the purchasing power of the dollar higher or lower today than it was in 2008? D.)Which economic system is better for consumers and firms?
