Econ

Engaging in any activity using any​ resource, even​ time, involves trading off the use of that resource for one or more alternative uses. a. True b. False

a.

Entrepreneurship is the component of human resources that performs the functions of​ organizing, managing, and assembling the other factors of production to create and operate business ventures. a. True b. False

a.

Healthcare subsidies will increase the consumption of health care a. Positive b. Normative

a.

PRICE QUANTITY DEMANDED QUANTITY SUPPLIED $10 10 50 $8 20 40 $6 30 30 $4 40 20 $2 50 10 In the table above the demand and supply schedules for pizza is given. Suppose Transcript publishes an article discussing the negative effects of pizza consumption on acne, thus causing demand to decrease to one half. The new equilibrium price and quantity would be a. $4. and 20. b. $6 and 30. c. $8 and 40 d. $10 and 30.

a.

Suppose a student is trying to decide whether or not to take another economics class. Which of the following is not an aspect of the economic way of thinking that would apply in this decision-making process? a. Rationality. b. Self-interest. c. Flipping a coin. d. Responding to incentives.

c.

Which of the following is not Capital? a. A factory b. A dump truck c. Money d. A computer

c.

Suppose an economy is producing only bread and milk and the below table gives the PPF for this economy (Use this table to answer questions 6 and 7) Bread (loaves) Milk (gallons) 40 0 30 20 20 35 10 45 0 50 Given the above table, what is the opportunity cost of increasing the production of bread from 10 to 20 loaves? a. 5 gallons of milk b. 10 gallons of milk c. 20 gallons of milk d. 15 gallons of milk e. 10 loaves of bread

b.

The "marginal _________" of going to a particular concert is the additional benefit (satisfaction or pleasure) that is gained. a. Cost b. Utility c. Peanut butter d. interest

b.

The economic way of thinking will a. lead a person to think in normative terms. b. allow you to make better decisions. c. have no influence on your decision making. d. help you get rich.

b.

A higher minimum wage will reduce employment opportunities for minimum wage workers. a. Positive b. Normative

a.

Positive economic statements ________, and normative economic statements ________. a. are concerned with "what is"; are concerned with "what ought to be" b. relate to whether outcomes are good or bad; are value-free statements. c. are value judgements; are factual statements. d. are scientific predictions; are purely descriptive.

a.

When a production possibilities is linear it shows a. a truer picture of real life than a bowed out production possibilities frontier b. that resources are perfectly shiftable from the production of one good to another c. an example of increasing opportunity costs d. that it is possible to produce more of one good without producing less of the other

b.

Which of the following is an example of a normative statement? a. If the price of a product decreases, quantity demanded increases b. Reducing tax rates would be good for the economy. c. If the national savings rate were to increase, so would the rate of economic growth d. Prices rise when the government prints more money

b.

Which of the following would NOT shift the demand curve for a good or service? a. a change in income b. a change in the price of the good or service c. a change in expectations about the future price of the good or service d. a change in the price of a related good

b.

Which one of the following statements is false? a. Demand curves tend to slope downward. b. The relationship between price and quantity demanded is generally positive. c. The relationship between price and quantity supplied is generally direct. d. At equilibrium, the quantity demanded equals the quantity supplied. e. A shortage occurs when the quantity demanded exceeds the quantity supplied

b.

and........... system. a. tariff b. price c. conditional

b.

Each country has a unique economic system to allocate its scarce resources. However, the economic system of most of the world's nations are a combination of the.........system. a. external planning b. internal planning c. central planning

c.

It takes Bob 20 minutes to wash a car and 30 minutes to vacuum the interior. It takes Patrick 10 minutes to wash a car and 20 minutes to vacuum the interior. Which of the following is correct. a. Bob has absolute advantage in washing cars, Patrick has absolute advantage in vacuuming b. Patrick has absolute advantage in washing cars, Bob has absolute advantage in vacuuming c. Patrick has comparative advantage in washing cars, Bob has comparative advantage in vacuuming d. Bob has comparative advantage in washing cars, Patrick has comparative advantage in vacuuming e. Patrick has comparative advantage in both car washing and vacuuming

c.

The Supply Curve is upward-sloping because: a. As the price increases, so do costs. b. As the price increases, consumers demand less. c. As the price increases, suppliers can earn higher levels of profit or justify higher marginal costs to produce more. d. None of the Above

c.

Which of the following statements is correct about the law of demand? a. as the price of oranges decreases, the demand for oranges increases b. as the price of oranges increases, the demand for oranges increases c. as the price of oranges decreases, the quantity of oranges demanded increases d. as the price of oranges increases, the quantity of oranges demanded increases e. as the price of oranges decreases, the demand for oranges shifts to the left.

c.

_________is the situation in which human wants always exceed what can be produced with the limited resources and time that nature makes available. a. a shortage b. A surplus c. Scarcity d. Poverty

c.

A microeconomist might study each of the following EXCEPT a. the effects of rent control on housing in New York City. b. how a college student makes financial decisions. c. how tariffs on shoes affects the shoe industry. d. impact of monetary policy on the rate of inflation.

d.

A production possibilities curve a. represents all possible combinations of maximum outputs that could be​ produced, assuming a fixed amount of productive resources of a given quality. b. shows the possibilities available for increasing the output of one good or service by reducing the amount of another. c. defines the maximum quantity of one good or service that can be​ produced, given that a specific quantity of another is produced. d. All of the above.

d.

Rational, self-interested government officials seeking more funding for mass transit through higher taxes should consider a. how to spend the funds for their own individual gain. b. That taxpayers may prefer to use mass transit to save on gas cost. c. that taxpayers may prefer to commute in their own cars rather than depend on mass transit. d. the fact that raising taxes is generally unpopular and may result in a potential loss in a future election.

d.

Suppose the ticket price for the upcoming Maroon 5 concert at Nationwide Arena is set above the equilibrium price. Which of the following is correct? a. There is excess supply of Maroon 5 concert tickets b. Buyers desire to purchase more than the available tickets for sale. c. Sellers desire to sell more tickets than buyers wish to purchase d. There is excess demand for Maroon 5 concert tickets. e. Both (a) and (c)

e.

Toys, in general are considered normal goods. All else constant, which of the following would tend to decrease the price of toys? a. Consumers get larger than expected Christmas bonuses b. A recession reduces the consumers' income c. The government decreases income tax rates d. There is a technological improvement in toy manufacturing e. Both (b) and (d)

e.

Suppose that the number of buyers in ice cream market increases and a new technology in the production of ice cream is developed. What would we expect to happen in the market for ice cream? a. The equilibrium price would increase, but the impact on the equilibrium quantity of ice cream traded would be ambiguous. b. The equilibrium price would decrease, but the impact on the equilibrium quantity of ice cream traded would be ambiguous. c. Both equilibrium price and equilibrium quantity would increase d. Equilibrium quantity would increase, but the impact on the equilibrium price would be ambiguous. e. Equilibrium quantity would decrease, but the impact on the equilibrium price would be ambiguous.

a.

Suppose when the price of shirts increases from $20 to $25, the quantity supplied increases. This change is best described as ... a. movement along a supply curve. b. a change in supply. c. movement along a demand curve. d. a change in demand. e. none of the above.

a.

The producer that can produce a product with lower opportunity cost a. has a comparative advantage in the production of that good. b. has an absolute advantage in the production of that good. c. should import that product. d. Both b and c are correct.

a.

What happens in the market for airline travel when the price of traveling by rail decreases? a. The demand curve shifts left. b. The demand curve shifts right. c. The supply curve shifts left. d. The supply curve shifts right. e. We move along the supply curve

a.

With respect to your grades in your accounting and economics​ classes, a​ one-to-one trade-off means that the opportunity cost of receiving one grade higher in accounting​ (for example, improving from a D to a​ C) is one grade lower in economics​ (falling from a B to a​ C). a. True b. False

a.

_________ is not a factor of production. a. Money b. Capital c. Labor d. land

a.

A production possibilities curve represents a. all possible combinations of output that could be produced assuming changing technology. b. all possible combinations of output that could be produced at zero opportunity cost. c. all possible combinations of output that could be produced assuming fixed productive resources and their efficient use. d. the notion that greater quantities of all goods may be produced.

b.

A rational, self-interested student decides whether to purchase a textbook required for a particular class based on all of the following, except a. his limited resources, such as income and time. b. whether the textbook has an attractive dust jacket. c. the price of the textbook. d. whether he can borrow the textbook from his friends.

b.

All the following shift the demand curve for automobiles to the right except: a. the local factory gives a big raise to its employees. b. a brand new automobile dealership opens in town. c. the price of gasoline falls. d. None of the Above

b.

Economic goods are goods for which the quantity demanded exceeds the quantity supplied at a zero price. a. False b. True

b.

Everyone should enjoy open access to healthcare a. Positive b. Normative

b.

Increasing the earnings of minimum wage employees is desirable, and raising the minimum wage is the best way to accomplish this a. Positive b. Normative

b.

Opportunity cost is best defined as_______ alternative(s) that must be sacrificed to obtain something or to satisfy a want. a. all of the other b. the next best

b.

People have​ ________ wants and​ ________ resources to deal with those wants. a. ​limited; limited b. ​unlimited; limited c. ​limited; unlimited d. ​unlimited; unlimited

b.

Scarcity is the same as a shortage. a. True b. False

b.

Suppose an economy is producing only bread and milk and the below table gives the PPF for this economy (Use this table to answer questions 6 and 7) Bread (loaves) Milk (gallons) 40 0 30 20 20 35 10 45 0 50 Given the above table, which of the following statements accurately describes the production possibilities for this economy? a. the opportunity cost of an additional 10 loaves of bread is 20 gallons of milk b. the opportunity cost of an additional 10 loaves of bread is 10 gallons of milk c. without additional information, it is impossible to determine the opportunity cost of an additional 10 loaves of bread d. the opportunity cost of an additional 10 loaves of bread increases as more bread is produced

d.

The ultimate purpose of economics is a. to enable one to make predictions on what the stock market is going to do. b. to teach us how to make money. c. to motivate people so they work harder. d. to study how individuals make choices

d.

Suppose Joelle quits her job as an IT consultant and starts her own dance studio. As an IT consultant her yearly salary was 60,000. To rent the space for her studio and pay for salaries of coworkers and other expenses, she withdraws $20,000 of her savings, which was earning 5% interest. At her studio, Joelle has 100 students and charges each one tuition of $400. Which of the following is Joelle's opportunity cost of starting her own dance studio? a. $21,000 b. $80,000 c. $81,000 d. $121,000 e. $41,000

e.