Question 1

Economics is the study of the ________ people make to attain their goals,given their ________ resources.

Accepted Answer

A)  purchases; unlimited
B)  choices; scarce
C)  income; available
D)  decisions; household

Question 2

Suppose a doctor can earn an additional $10,000 in revenue per year from keeping her office open on Saturdays.What must the additional cost of keeping the office open on Saturdays be to make this decision economically rational?

Accepted Answer

The additional cost of keeping...

Question 3

Ted quits his $60,000-a-year job to be a stay-at-home dad.What is the opportunity cost of his decision?

Accepted Answer

A)  0 since he will no longer be earning a salary
B)  depends on the "going rate" for stay-at-home dads
C)  at least $60,000
D)  the value he attributes to the joy of parenting

Question 4

Which of the following best describes an assumption economists make about human behavior?

Accepted Answer

A)  They assume that individuals act rationally all the time in all circumstances.
B)  They assume that rational behavior is useful in explaining choices people make even though people may not behave rationally all the time.
C)  They assume that people take into account the question of fairness in all decisions they make.
D)  They assume that individuals act randomly.

Question 5

Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests.Suppose your classmate,Heidi purchased two tickets for $40 each.Is this transaction economically efficient?

Accepted Answer

A)  No,people should never be allowed to sell items they received for free.
B)  Yes,it was a voluntary exchange that benefited both parties.
C)  No,Heidi paid too much for the tickets.
D)  Yes,it is efficient only from the perspective of the seller and not from the perspective of the buyer.

Question 6

How does a market system prevent people from getting as many goods and services as they wish?

Accepted Answer

A)  Governments interfere with the market mechanism to influence the allocation of goods and services.
B)  In a market system,firms can charge any price they want,thus preventing poor people from getting as many goods and services as they wish.
C)  The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor.
D)  The government imposes taxes on those who earn beyond a certain amount of income.

Question 7

At a recent company meeting,Geraldine Erwin,sales manager of Dastoria,a flavored beverage producer announced,"We have increased our sales by 8 percent in just six months." Suppose six months ago,its sales amounted to $452,000,what is the value of its sales today?

Accepted Answer

A)  $36,160
B)  $415,840
C)  $488,160
D)  $565,000

Question 8

A college must decide if it wants to offer more evening and weekend classes.This decision involves answering the economic question of "for whom to produce."

Accepted Answer

A) True 
 B)False

Question 9

According to census figures,what has been the trend in the United States since 1970 of doctors choosing to operate a private practice versus choosing to work for a hospital or group practice?

Accepted Answer

The number of solo practices has fallen ...

Question 10

The branch of economics which studies how households and firms make choices,interact in markets and how government attempts to influence their choices is called

Accepted Answer

A)  macroeconomics.
B)  microeconomics.
C)  positive economics.
D)  normative economics.

Question 11

Human capital refers to

Accepted Answer

A)  the money people have.
B)  the machines workers have to work with.
C)  the accumulated skills and training workers have.
D)  the wealth people have.

Question 12

Which of the following is a macroeconomics question?

Accepted Answer

A)  What determines the unemployment rate?
B)  How is the production quantity of digital cameras determined?
C)  What factors determine the price of iPhones?
D)  What determines the wages and benefits of flight attendants?

Question 13

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

Accepted Answer

A)  relationships between two economic variables.
B)  one variable.
C)  a flow chart.
D)  a pie chart.

Question 14

There is often a trade-off between

Accepted Answer

A)  productive efficiency and allocative efficiency.
B)  limited and unlimited resources.
C)  voluntary and involuntary exchanges.
D)  economic efficiency and economic equity.

Question 15

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

Accepted Answer

A)  people without health insurance will be less likely to be overweight than people with health insurance.
B)  people without health insurance will be more likely to be overweight than people with health insurance.
C)  people without health insurance will be equally likely to be overweight as people with health insurance.
D)  there is no correlation between not having health insurance and being overweight.

Question 16

One example of human capital is the amount of savings that you have.

Accepted Answer

A) True 
 B)False

Question 17

Suppose the extra cost to a doctor of keeping her office open on Saturdays is $800.Then,the doctor should not stay open on Saturdays if keeping the office open can only bring in additional revenue of $800.

Accepted Answer

A) True 
 B)False

Question 18

Cassie's Quilts alters,reconstructs and restores heirloom quilts.Cassie has just spent $800 purchasing,cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished.After having spent $800,Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task.Alternatively,she can sell the quilt "as is" now for $900.What is the marginal cost of completing the task?

Accepted Answer

A)  $200
B)  $500
C)  $1,000
D)  $1,000 plus the value of her time

Question 19

Which of the following statements is false?

Accepted Answer

A)  Anytime you have to decide which action to take you are facing an economic trade-off.
B)  Trade-offs do not apply when the consumers purchase a product for which there is excess supply,such as a stock clearance sale.
C)  Every individual,no matter how rich or poor,is faced with making trade-offs.
D)  Economics is a social science that studies the trade-offs we are forced to make because of scarcity.

Question 20

Which of the following statements about economic resources is false?

Accepted Answer

A)  Economic resources include financial capital and money.
B)  Economic resources are also called factors of production.
C)  Economic resources are used to produce goods and services.
D)  Some economic resources are human-made while others are found in nature.

Exam 1: Economics: Foundations and Models

At a recent company meeting,Geraldine Erwin,sales manager of Dastoria,a flavored beverage producer announced,"We have increased our sales by 8 percent in just six months." Suppose six months ago,its sales amounted to $452,000,what is the value of its sales today?

Correct Answer
verified

Which of the following best describes an assumption economists make about human behavior?

Correct Answer
verified

Economics is the study of the people make to attain their goals,given their resources.

Correct Answer
verified

Which of the following is a macroeconomics question?

Correct Answer
verified

Which of the following statements is false?

Correct Answer
verified

Suppose a doctor can earn an additional $10,000 in revenue per year from keeping her office open on Saturdays.What must the additional cost of keeping the office open on Saturdays be to make this decision economically rational?

Correct Answer
verified
The additional cost of keeping...
View Answer

Human capital refers to

Correct Answer
verified

One example of human capital is the amount of savings that you have.

Correct Answer
verified

Which of the following statements about economic resources is false?

Correct Answer
verified

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

Correct Answer
verified

There is often a trade-off between

Correct Answer
verified

The branch of economics which studies how households and firms make choices,interact in markets and how government attempts to influence their choices is called

Correct Answer
verified

According to census figures,what has been the trend in the United States since 1970 of doctors choosing to operate a private practice versus choosing to work for a hospital or group practice?

Correct Answer
verified
The number of solo practices has fallen ...
View Answer

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

Correct Answer
verified

A college must decide if it wants to offer more evening and weekend classes.This decision involves answering the economic question of "for whom to produce."

Correct Answer
verified

Ted quits his $60,000-a-year job to be a stay-at-home dad.What is the opportunity cost of his decision?

Correct Answer
verified

Suppose the extra cost to a doctor of keeping her office open on Saturdays is $800.Then,the doctor should not stay open on Saturdays if keeping the office open can only bring in additional revenue of $800.

Correct Answer
verified

Correct Answer
verified

Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests.Suppose your classmate,Heidi purchased two tickets for $40 each.Is this transaction economically efficient?

Correct Answer
verified

How does a market system prevent people from getting as many goods and services as they wish?

Correct Answer
verified

Exam 1: Economics: Foundations and Models

At a recent company meeting,Geraldine Erwin,sales manager of Dastoria,a flavored beverage producer announced,"We have increased our sales by 8 percent in just six months." Suppose six months ago,its sales amounted to $452,000,what is the value of its sales today?

Correct AnswerverifiedShow Answer

Which of the following best describes an assumption economists make about human behavior?

Correct AnswerverifiedShow Answer

Economics is the study of the ________ people make to attain their goals,given their ________ resources.

Correct AnswerverifiedShow Answer

Which of the following is a macroeconomics question?

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Suppose a doctor can earn an additional $10,000 in revenue per year from keeping her office open on Saturdays.What must the additional cost of keeping the office open on Saturdays be to make this decision economically rational?

Correct AnswerverifiedThe additional cost of keeping...View AnswerShow Answer

Human capital refers to

Correct AnswerverifiedShow Answer

One example of human capital is the amount of savings that you have.

Correct AnswerverifiedShow Answer

Which of the following statements about economic resources is false?

Correct AnswerverifiedShow Answer

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

Correct AnswerverifiedShow Answer

There is often a trade-off between

Correct AnswerverifiedShow Answer

The branch of economics which studies how households and firms make choices,interact in markets and how government attempts to influence their choices is called

Correct AnswerverifiedShow Answer

According to census figures,what has been the trend in the United States since 1970 of doctors choosing to operate a private practice versus choosing to work for a hospital or group practice?

Correct AnswerverifiedThe number of solo practices has fallen ...View AnswerShow Answer

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

Correct AnswerverifiedShow Answer

A college must decide if it wants to offer more evening and weekend classes.This decision involves answering the economic question of "for whom to produce."

Correct AnswerverifiedShow Answer

Ted quits his $60,000-a-year job to be a stay-at-home dad.What is the opportunity cost of his decision?

Correct AnswerverifiedShow Answer

Suppose the extra cost to a doctor of keeping her office open on Saturdays is $800.Then,the doctor should not stay open on Saturdays if keeping the office open can only bring in additional revenue of $800.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests.Suppose your classmate,Heidi purchased two tickets for $40 each.Is this transaction economically efficient?

Correct AnswerverifiedShow Answer

How does a market system prevent people from getting as many goods and services as they wish?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Economics is the study of the people make to attain their goals,given their resources.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The additional cost of keeping...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The number of solo practices has fallen ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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