Econ 3 week assessment
Since economists cannot use natural experiments offered by history, they must use carefully constructed laboratory experiments instead. true or false
False
With careful planning, we can usually get something that we like without having to give up something else that we like. Top of Form a. True b. False
False
Economists believe that production possibilities frontiers rarely have a bowed shape. True or false
False
Government policies that improve equality usually increase efficiency at the same time. Top of Form a. True b. False
False
While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy. True or false
False
. Any measurable element within an economic model that may change is called a(n): A. Economic variable B. : PriceC. Opportunity cost D. Surplus
A
. If the demand for a good falls when income falls, then the good is called a. an inferior good. b. a normal good. c. a regular good. d. an ordinary good.
B
. The concept of a market is a A. store. B. location where buyers and sellers meet to negotiate prices and determine quantities traded. C. group of buyers and sellers of a good or service. place where sellers increase their wealth
B
27. A baker recently has come to expect higher prices for bread in the near future. We would expect a. the demand for bread to fall. b. the baker to supply less bread now than she was supplying previously. c. the baker to supply more bread now than she was supplying previously. d. no change in the baker's current supply of bread; instead, future supply will be affected.
B
4. When the government prevents prices from adjusting naturally to supply and demand, it a. equates the amount buyers want to buy with the amount sellers want to sell. b. improves equality and efficiency. c. improves efficiency but reduces equality. d. adversely affects the allocation of resources.
D
The principle stating that, with all else equal, the quantity demanded of a product will increase as the price falls and decrease as it rises is called: A. Substitution effect B. Income effectC. The law of supply D. The law of demand
D
1. While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that a. people respond to incentives. b. people face tradeoffs. c. rational people think at the margin. d. trade can make everyone better off.
People face tradeoffs
. Economic growth occurs when an economy is able to increase its production of goods and services. True or False
True
. The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour. Top of Form a. True b. False
True
6. Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires. Top of Form a. True b. False
True
Positive statements are descriptive, while normative statements are prescriptive True or false
True
The opportunity cost of moving from point A to point D is 10 dishwashers. True or false
True
If something happens to alter the quantity supplied at any given price, then we move along the fixed supply curve to a new quantity supplied. true or false
false
Sellers as a group determine the demand for a product, and buyers as a group determine the supply of a product. True or false
false
The gains from specialization and trade are based on absolute advantage. True or false
false
There is only one explanation for why economists give conflicting advice on policy issues, and it is that they have different values about what policy should try to accomplish. True or false
false
Trade does not benefit a nation if that nation has a comparative advantage in the production of that good. True or false
false
When it is said that trade between nations can make both sides of the trade better off, this means that all citizens in each nation will benefit. True or false
false
While the production possibilities frontier is a useful model, it cannot be used to illustrate economic growth. True or false
false
28. Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good? a. A decrease in consumer income b. Greater government restrictions on agricultural chemicals c. An increase in consumer income d. Fewer government restrictions on agricultural chemicals
A
53. Which is the main motivation for entrepreneurs to take on the risks of producing? A. Profit B. Fun C. Decreasing costs of production D. Increasing costs of production
A
Which of the following is NOT a result of specialization? A. One-sided benefits B. Innovation of existing products C. Development of new products D. Wealth
A
. The quantity demanded of a good is the amount that buyers are a. willing to purchase. b. willing, able, and need to purchase. c. willing and able to purchase. d. able to purchase.
C
24. Which of the following would shift the demand curve for gasoline to the right? a. An increase in the price of cars, a complement for gasoline b. An increase in consumer income, assuming gasoline is a normal good c. A decrease in the expected future price of gasoline d. A decrease in the price of gasoline
B
26. What will happen in the market for shotgun-shell ammunition now if buyers expect higher shotgun-shell prices in the near future? a. The demand for shotgun-shell ammunition will be unaffected. b. The demand for shotgun-shell ammunition will increase. c. The demand for shotgun-shell ammunition will decrease. d. The supply of shotgun-shell ammunition will increase.
B
53. While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that a. people respond to incentives. b. people face tradeoffs. c. rational people think at the margin. d. trade can make everyone better off.
B
53. Who would benefit the most from adding restrictions like patents to enter markets? A. Consumers B. Producers C. Government All of the above would benefit equally
B
Refer to Figure 2-3. This economy cannot currently produce 70 washers and 70 dryers because a. it is not using the most efficient production process. b. it does not have the resources and technology to produce that level of output. c. it is not using all of its resources. d. consumers don't want that many washers and dryers.
B
What is likely to happen to a good if a good that is a complement decreases in price? A. The price of the good will increase. B. Demand for the good will increase. C. Supply of the good will decrease.D. The price of the good will be unaffected
B
Who benefits the most from competitive markets? A. The government B. Consumers C. Producers D. Investors
B
. To improve living standards, policymakers should a. provide tax breaks for the middle class. b. impose restrictions on foreign competition. c. formulate policies designed to increase productivity. d. impose tougher immigration policies.
C
19. What must be given up to obtain an item is called a. absolute value. b. comparative worth. c. opportunity cost. d. out-of-pocket cost.
C
3. In a market economy, economic activity is guided by a. public-interest groups. b. central planners. c. self-interest and prices. d. the government.
C
Farmers withholding some of their current corn harvest from the market because they anticipate a higher price of corn in the near future would cause a A. rightward shift in the current supply of corn. B. B. movement up along the current supply curve of corn. C. leftward shift in the current supply of corn. D. movement down along the current supply curve of corn.
C
Which of the following is NOT a factor that influences the elasticity of demand? A. Availability of substitutes B. Passage of time C. Cost of the good D. Necessity of a good
C
Which of the following is NOT a factor that influences the elasticity of demand? A. Availability of substitutes B. Passage of time C. Cost of the good D. Necessity of a good
C
53. The ______ is when society enforces property rights, contracts, and other rules based on an established set of laws. A. rule of man B. rule of force C. rule of one D. rule of law
D
The "invisible hand" refers to a. how central planners made economic decisions. b. the control that large firms have over the economy. c. government regulations without which the economy would be less efficient. d. how the decisions of households and firms lead to desirable market outcomes.
D
The most important purpose of a market is to A. bring buyers and sellers together so they can barter. B. increase the sellers' wealth. C. bring buyers and sellers together so they can argue. D. bring buyers and sellers together so they can trade
D
The opportunity cost of constructing a new public highway is the A. money cost of hiring contractors and construction workers for the new highway. B. expected cost of constructing the new highway in a future year.C. value of shorter driving times and distances when the new highway is completed. D.value of other goods and services that are sacrificed in order to construct the new highway.
D
The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line. true or false
true
