Mid term Intro to ECON (ECO 140-231) Summer class 2021

In economics, which of the following is the best example of capital? The executive producer of a new adventure movie. Investment in training for employees in an accounting firm. A computer used by a lawyer to prepare legal documents. Money held in a checking account.

A computer used by a lawyer to prepare legal documents.

Which of the following is NOT an example of land or a natural resource? Coal. Natural gas. A river. A homebuilder.

A homebuilder.

The role of the entrepreneur in an economy is to Ensure full employment of labor. Work with government planners to determine what goods are produced. Arrange bank financing for the owners of new businesses. Bring the factors of production together and assume the risk of production.

Bring the factors of production together and assume the risk of production.

Which of the following is not a factor of production? $100,000 cash. A bulldozer. A psychiatrist. Six thousand acres of farmland.

$100,000 cash.

Capital, as economists use the term, refers to Shares of stock issued by businesses. The cash needed to start a new business. The costs of operating a business. Final goods that are used to produce other goods and services.

Final goods that are used to produce other goods and services.

Opportunity cost may be defined as the Difference between wholesale and retail prices. Dollar cost of producing a particular product. Dollar prices paid for final goods and services. Goods or services that are forgone in order to obtain something else.

Goods or services that are forgone in order to obtain something else.

Ben says that "an increase in the tax on beer will raise its price." Holly argues that "taxes should be increased on beer because college students drink too much." We can conclude that: Holly's statement is normative, but Ben's is positive. Both statements are normative. Ben's statement is normative, but Holly's is positive. Both statements are positive.

Holly's statement is normative, but Ben's is positive.

In economics, which of the following represents entrepreneurship? Machinery, buildings, and networks. The skills of workers. Natural resources. Ideas about how to create new products and services.

Ideas about how to create new products and services.

The basic factors of production include Labor and money. Land, labor, money, and capital. Land, labor, money, and inputs. Land, labor, capital, and entrepreneurship.

Land, labor, capital, and entrepreneurship.

Given that resources are scarce, Some choices involve opportunity costs while other choices do not. A "free lunch" is possible, but only for a limited number of people. Poor countries must make choices, but rich countries with abundant resources do not have to make choices. Opportunity costs are experienced whenever choices are made

Opportunity costs are experienced whenever choices are made

Ceteris paribus, which of the following will cause the demand curve for basketballs to shift to the left? Multiple Choice The cost of producing basketballs increases. People become more interested in basketball as more football players are arrested for drugs. Consumer incomes increase. Parents decide soccer is a better sport for their children than basketball.

Parents decide soccer is a better sport for their children than basketball.

Factors of production are Scarce only in the poorest countries of the world. Scarce in every society. Scarce only in advanced countries. Unlimited in quantity.

Scarce in every society.

In economics, scarcity means that The market mechanism has failed. A production possibilities curve cannot accurately represent the trade-off between two goods. A shortage of a particular good will cause the price to fall. Society's desires exceed resources available.

Society's desires exceed resources available.

The opportunity cost of studying for an economics test is: Zero because you knew when you registered for the class that studying would be required. The money you spent on tuition for the class. Negative because it may improve your grade. The activity that is the best alternative use of your time.

The activity that is the best alternative use of your time.

Which of the following explains why economic choices must be made? The factors of production are scarce. The factors of production are expensive. The factors of production are used inefficiently. The factors of production are of inferior quality.

The factors of production are scarce.

Which of the following is NOT a factor of production? The money hidden in an old basement. A toll-bridge across a lake. A wrecking ball used to tear down old buildings. The CEO of a large corporation.

The money hidden in an old basement.

Which of the following is true about the factors of production? The physical limits of production are determined by all of the factors of production and technology. The factors include natural resources but not skilled labor. Some factors are scarce but other factors are not. Rich countries have an unlimited quantity of factors.

The physical limits of production are determined by all of the factors of production and technology.

The fundamental problem of economics is The scarcity of resources relative to human wants. How to create employment for everyone. The law of increasing opportunity costs. How to get government to operate efficiently.

The scarcity of resources relative to human wants.

Which of the following is an example of labor as a factor of production? A college or university that educates people. People who are paid an hourly wage but not those paid a salary. The skills and abilities of workers. People who bring together the skills necessary for creating products and services.

The skills and abilities of workers.

Which of the following is a positive statement? Summer evenings are nice when it cools off to around 70 degrees. It is too hot to run outside when the temperature exceeds 80 degrees. A humidity level of 90 percent is too high. The temperature is 92 degrees today.

The temperature is 92 degrees today.

Which of the following is the best example of land? The ethanol refined from corn. A barber's chair. The water used to make a soft drink. A factory that produces new goods and services.

The water used to make a soft drink.

Opportunity cost is The difficulty associated with using one good in place of another. The total dollar cost to society of producing the goods. What is given up in order to get something else. Measured only in dollars and cents.

What is given up in order to get something else.

Which of the following is the best example of the "WHAT" economic question? Is the production process using an efficient amount of labor and capital machinery? What is the most efficient method for producing goods? What is the optimal mix of output? Who are the recipients of the goods produced?

What is the optimal mix of output?

A demand schedule refers to the combinations of price and quantity that represent the concerns of regulators desires of consumers demands of producers preferences of businesses

desires of consumers

The central problem of economics is the fact that human wants exceed the availability of resources. labor unemployment visible throughout the economy. inefficiency of government operations. distribution of goods and services to those in need.

fact that human wants exceed the availability of resources.

In economics, capital refers to the value of a corporation's assets. goods that can be used to produce other goods. money. savings put aside for future investment.

goods that can be used to produce other goods.

The primary concern of economics is the study of the measurement of political power in an economy. why human wants exist and what motivates them. how to distribute goods and services according to human needs. how best to allocate scarce resources among competing uses.

how best to allocate scarce resources among competing uses.

The main focus of economic studies concerns the role of money in our economy. the elimination of opportunity costs. the behavior of successful businesses. how best to allocate scarce resources.

how best to allocate scarce resources.

A normative statement is one that: applies only to microeconomics. is based on the law of averages. is based on value judgments. applies only to macroeconomics.

is based on value judgments.

A positive statement is one that is: subjective and is based on a value judgment. objective and is based on facts. derived by induction. derived by deduction.

objective and is based on facts.

Given that resources are scarce some choices involve opportunity costs while other choices do not. poor countries must make choices, but rich countries do not have to make choices. a "free lunch" is possible, but only for a limited number of people. opportunity costs always exist whenever choices are made.

opportunity costs always exist whenever choices are made.

eteris paribus, according to the law of demand, if the price of a computer game increases from $25 to $30, the demand curve for computer games will shift to the left. quantity demanded of computer games will increase. quantity demanded of computer games will decrease. quantity demanded will not be affected.

quantity demanded of computer games will decrease.

There would be no reason for students to study the concept of opportunity costs if the government allocated resources the market mechanism functioned to allocate resources. the production possibilities curve bowed outward. resources were no longer scarce.

resources were no longer scarce.

Output choices are necessary within a market because of inefficient use of resources high prices for goods. scarcity of resources. limited technology.

scarcity of resources.

If society lacks enough resources to satisfy all the desired uses of the resources, this is known as scarcity. market failure. government failure. laissez faire.

scarcity.

Entrepreneurship refers to natural resources, such as land and water. skilled labor. computer technology. the ability to see market opportunities and the will to take risk.

the ability to see market opportunities and the will to take risk

Scarcity means society will run out of the factors of production in the near future. the desire for goods exceeds our capacity to produce them. retail stores always run out of popular products. a surplus of unsold goods in a specific market will not occur.

the desire for goods exceeds our capacity to produce them.

The opportunity cost of playing tennis with your friend is the cost of the tennis lessons you took last year. the next-best alternative use of your time that is forgone. negative since it is good exercise. zero since you already own the tennis racket and play on a public court.

the next-best alternative use of your time that is forgone.

If resources are limited people will rush to buy more goods than they would otherwise. there will be tradeoffs whenever choices are made. all individuals are deprived of basic necessities. businesses will sell more products than they would otherwise.

there will be tradeoffs whenever choices are made.

Opportunity cost may be defined as the dollar price paid for a final good or service. value of the most desired goods or services that are forgone in order to obtain something else. dollar cost of producing a particular product. dollar cost of the next best alternative resources for producing a good.

value of the most desired goods or services that are forgone in order to obtain something else.

Societies must address the question of WHAT to produce because we can't produce all the goods and services we want. our economy experiences market failures. the amount of money in an economy is limited. we are wasteful and use resources inefficiently.

we can't produce all the goods and services we want.

A positive statement is concerned primarily with: what is. what should be .the formulation of economic policy. some goal that is desirable to society.

what is

Normative statements are concerned primarily with: facts and theories. rational choice involving costs and benefits. what ought to be. what is.

what ought to be.