Question 1

What do economists mean when they state that a good is scarce?

Accepted Answer

A) There is a shortage or insufficient supply of the good at the existing price. 
B) It is impossible to expand the availability of the good beyond the current amount. 
C) People will want to buy more of the good regardless of the price of the good. 
D) The amount of the good that people would like exceeds the supply freely available from nature. 
A) There is a shortage or insufficient supply of the good at the existing price. 
B) It is impossible to expand the availability of the good beyond the current amount. 
C) People will want to buy more of the good regardless of the price of the good. 
D) The amount of the good that people would like exceeds the supply freely available from nature.

Question 2

Which of the following statements is correct?

Accepted Answer

A) If the buyer of a good gains, the seller must lose an equal amount. 
B) The value of goods is objective; it is equal to the cost of supplying the good. 
C) Opportunity costs will always be incurred when scarce resources are used to produce a good. 
D) Changes in incentives generally have no effect on human behavior. 
A) If the buyer of a good gains, the seller must lose an equal amount. 
B) The value of goods is objective; it is equal to the cost of supplying the good. 
C) Opportunity costs will always be incurred when scarce resources are used to produce a good. 
D) Changes in incentives generally have no effect on human behavior.

Question 3

Which one of the following statements is correct?

Accepted Answer

A) Policymakers have good intentions and therefore their proposals will create good outcomes. 
B) Potential secondary effects do not need to be considered when deciding whether to implement a new government program. 
C) A good outcome is guaranteed from a government program if it is created with good intentions. 
D) Government programs can be implemented with good intentions but can lead to undesirable outcomes because of unintended consequences. 
A) Policymakers have good intentions and therefore their proposals will create good outcomes. 
B) Potential secondary effects do not need to be considered when deciding whether to implement a new government program. 
C) A good outcome is guaranteed from a government program if it is created with good intentions. 
D) Government programs can be implemented with good intentions but can lead to undesirable outcomes because of unintended consequences.

Question 4

Evaluate this statement: "People engaged in economizing behavior will always buy the lowest priced item they can find."

Accepted Answer

As long as price is the only factor, we

What do economists mean when they state that a good is scarce?

Which of the following statements is correct?

Which one of the following statements is correct?

Evaluate this statement: "People engaged in economizing behavior will always buy the lowest priced item they can find."

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad-As Model

Fiscal Policy: the Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy, Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Creating an Environment for Growth and Prosperity

Institutions, Policies, and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Filters

Exam 1: The Economic Approach

What do economists mean when they state that a good is scarce?

Which of the following statements is correct?

Which one of the following statements is correct?

Evaluate this statement: "People engaged in economizing behavior will always buy the lowest priced item they can find."

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad-As Model

Fiscal Policy: the Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy, Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Creating an Environment for Growth and Prosperity

Institutions, Policies, and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Filters