Question 1

Which actor in the simplified circular flow model buys or rents land,labor,and capital?

Accepted Answer

A)   Firms
B)   Households
C)   Markets for factors of production
D)   GovernmentE) B) and C)
F) A) and D)

Question 2

After purchasing a coffee cup from your local gas station for $5.00,you can always refill your cup for $0.50.The sunk cost of the coffee purchased at the gas station is:

Accepted Answer

A)   $0.50.
B)   $5.00.
C)   $10.00.
D)   $5.50.E) None of the above
F) B) and D)

Question 3

Alan could most directly apply the principles of economic decision making with respect to his job when:

Accepted Answer

A)   deciding how to spend his paycheck.
B)   deciding which girl to marry.
C)   deciding what to have for dinner after a long day at work.
D)   deciding which route on his way to work is the most scenic.E) C) and D)
F) A) and B)

Question 4

When the price of milk rises,there is no change in the amount of dog food purchased.This is an example of:

Accepted Answer

A)   indifference trade-off between the two goods.
B)   the interaction between two correlated goods.
C)   two items that are uncorrelated.
D)   the value people place on dogs versus milk.E) B) and D)
F) A) and D)

Question 5

Scarcity requires that we:

Accepted Answer

A)   make sure we only want things that we are capable of consuming and producing.
B)   change our fiscal policy until the situation of scarcity is eliminated.
C)   make decisions in order to arrange our resources rationally.
D)   adopt economic policies that will lead to unlimited resources.E) B) and D)
F) A) and D)

Question 6

Which of the following is considered a microeconomic issue?

Accepted Answer

A)   The local university decides to raise tuition for online course offerings.
B)   The country of Zimbabwe has experienced a decline in inflation.
C)   The economic growth rate was reported at 2.4 percent in the first quarter of 2013 for the United States.
D)   The unemployment rate in Greece is 22.8 percent.E) B) and C)
F) A) and D)

Question 7

If out of the two cities that send teams to the Super Bowl,the city with the lowest unemployment rate wins 70 percent of the time,there would be:

Accepted Answer

A)   a positive correlation between Super Bowl wins and low unemployment rates.
B)   evidence to conclude that richer cities always have better super bowl teams.
C)   the condition of ceteris paribus present in the winning cities.
D)   a negative correlation between Super Bowl wins and low unemployment rates.E) B) and C)
F) None of the above

Question 8

A rational choice is one that:

Accepted Answer

A)   allows individuals to reach their goals.
B)   involves the use of strategic decision making in an effort to reach a goal.
C)   does not involve self-interested behavior.
D)   is usually optimized when decision makers are poorly informed about alternatives.E) All of the above
F) A) and B)

Question 9

Which of the following is a positive incentive?

Accepted Answer

A)   deciding not to play golf due to rain
B)   making a donation to the Red Cross
C)   hiring 10 new workers as you decide to expand your operations
D)   offering a reward to anyone who finds your missing petE) A) and B)
F) B) and C)

Question 10

Many theaters sell empty seats at a deep discount just before show time.What economic concept is displayed by this behavior?

Accepted Answer

A)   Consumer demand
B)   Sunk costs
C)   Price optimization
D)   Thinking at the marginE) B) and D)
F) C) and D)

Question 11

Individuals,firms,and societies are limited in the amount of goods and services that they can produce.This is a direct result of:

Accepted Answer

A)   unemployment.
B)   waste.
C)   irrational behavior.
D)   scarcity.E) A) and B)
F) A) and C)

Question 12

Cameron can spend the afternoon playing golf,driving his boat,or cleaning his house.Although he enjoys golf,he sometimes becomes frustrated when playing.He decides to enjoy a more relaxing afternoon on his boat.Cameron never thought about cleaning the house but did give golf some serious consideration.Cameron's opportunity cost of taking his boat out was:

Accepted Answer

A)   a dirty house from deciding not to clean it.
B)   the enjoyment he would have gotten from playing golf.
C)   a dirty house and not playing golf.
D)   enjoying a relaxing day on the lake.E) C) and D)
F) None of the above

Question 13

One of the most basic models of the economy is:

Accepted Answer

A)   real GDP per capita.
B)   the current population survey.
C)   consumer expenditure.
D)   the circular flow model.E) A) and B)
F) C) and D)

Question 14

Applying for a loan in five-person groups is an example of:

Accepted Answer

A)   family and friends lending.
B)   party of five lending.
C)   group responsibility.
D)   trade-off.E) A) and C)
F) B) and D)

Question 15

Which of the following is a question that an economist would use to break down a problem?

Accepted Answer

A)   Will the average income per person for the society increase?
B)   Does the decision maker have a track record of being rational?
C)   Is there a scarce resource that will be allocated?
D)   How might one person feel about the solution to the problem?E) All of the above
F) A) and D)

Question 16

"There is no such thing as a free lunch." This is an example of which economic concept?

Accepted Answer

A)   Maximization
B)   Trade-offs
C)   Basic necessities
D)   Income effectE) A) and C)
F) None of the above

Question 17

The price of pizza falls relative to the price of spaghetti,so people buy more pizza instead of spaghetti.This is an example of responding to:

Accepted Answer

A)   marginal science.
B)   incentives.
C)   disincentives.
D)   sunk benefit.E) B) and D)
F) C) and D)

Question 18

A factual claim about how the world actually works is a ______________ statement.

Accepted Answer

A)   positive
B)   marginal
C)   irrational
D)   normativeE) A) and B)
F) B) and C)

Question 19

The idea of efficiency is used to address which of the following questions?

Accepted Answer

A)   What are the wants and constraints of those involved?
B)   What are the trade-offs?
C)   How will others respond?
D)   Why isn't everyone already doing it?E) A) and D)
F) None of the above

Question 20

Scarcity reflects our inability to satisfy wants due to:

Accepted Answer

A)   unlimited resources.
B)   limited resources.
C)   inefficient political systems.
D)   unemployed workers.E) A) and B)
F) A) and C)

Exam 1: Economics and Life

Applying for a loan in five-person groups is an example of:

Correct Answer
verified

Which of the following is a question that an economist would use to break down a problem?

Correct Answer
verified

"There is no such thing as a free lunch." This is an example of which economic concept?

Correct Answer
verified

Individuals,firms,and societies are limited in the amount of goods and services that they can produce.This is a direct result of:

Correct Answer
verified

One of the most basic models of the economy is:

Correct Answer
verified

The idea of efficiency is used to address which of the following questions?

Correct Answer
verified

Which of the following is a positive incentive?

Correct Answer
verified

Correct Answer
verified

A rational choice is one that:

Correct Answer
verified

Which actor in the simplified circular flow model buys or rents land,labor,and capital?

Correct Answer
verified

Scarcity reflects our inability to satisfy wants due to:

Correct Answer
verified

Which of the following is considered a microeconomic issue?

Correct Answer
verified

If out of the two cities that send teams to the Super Bowl,the city with the lowest unemployment rate wins 70 percent of the time,there would be:

Correct Answer
verified

After purchasing a coffee cup from your local gas station for $5.00,you can always refill your cup for $0.50.The sunk cost of the coffee purchased at the gas station is:

Correct Answer
verified

The price of pizza falls relative to the price of spaghetti,so people buy more pizza instead of spaghetti.This is an example of responding to:

Correct Answer
verified

Alan could most directly apply the principles of economic decision making with respect to his job when:

Correct Answer
verified

A factual claim about how the world actually works is a ______________ statement.

Correct Answer
verified

When the price of milk rises,there is no change in the amount of dog food purchased.This is an example of:

Correct Answer
verified

Scarcity requires that we:

Correct Answer
verified

Many theaters sell empty seats at a deep discount just before show time.What economic concept is displayed by this behavior?

Correct Answer
verified

Exam 1: Economics and Life

Applying for a loan in five-person groups is an example of:

Correct AnswerverifiedShow Answer

Which of the following is a question that an economist would use to break down a problem?

Correct AnswerverifiedShow Answer

"There is no such thing as a free lunch." This is an example of which economic concept?

Correct AnswerverifiedShow Answer

Individuals,firms,and societies are limited in the amount of goods and services that they can produce.This is a direct result of:

Correct AnswerverifiedShow Answer

One of the most basic models of the economy is:

Correct AnswerverifiedShow Answer

The idea of efficiency is used to address which of the following questions?

Correct AnswerverifiedShow Answer

Which of the following is a positive incentive?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A rational choice is one that:

Correct AnswerverifiedShow Answer

Which actor in the simplified circular flow model buys or rents land,labor,and capital?

Correct AnswerverifiedShow Answer

Scarcity reflects our inability to satisfy wants due to:

Correct AnswerverifiedShow Answer

Which of the following is considered a microeconomic issue?

Correct AnswerverifiedShow Answer

If out of the two cities that send teams to the Super Bowl,the city with the lowest unemployment rate wins 70 percent of the time,there would be:

Correct AnswerverifiedShow Answer

After purchasing a coffee cup from your local gas station for $5.00,you can always refill your cup for $0.50.The sunk cost of the coffee purchased at the gas station is:

Correct AnswerverifiedShow Answer

The price of pizza falls relative to the price of spaghetti,so people buy more pizza instead of spaghetti.This is an example of responding to:

Correct AnswerverifiedShow Answer

Alan could most directly apply the principles of economic decision making with respect to his job when:

Correct AnswerverifiedShow Answer

A factual claim about how the world actually works is a ______________ statement.

Correct AnswerverifiedShow Answer

When the price of milk rises,there is no change in the amount of dog food purchased.This is an example of:

Correct AnswerverifiedShow Answer

Scarcity requires that we:

Correct AnswerverifiedShow Answer

Many theaters sell empty seats at a deep discount just before show time.What economic concept is displayed by this behavior?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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