Exam 1: Ten Principles of Economics

Katie is planning to sell her house, and she is considering making two upgrades to the house before listing it for sale. Replacing the carpeting will cost her $2,500 and replacing the roof will cost her $9,000. Katie expects the new carpeting to increase the value of her house by $3,000 and the new roof to increase the value of her house by $7,000.

(Multiple Choice)

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Question 201

The mainstream view among economists is that

(Multiple Choice)

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Question 202

Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires.

(True/False)

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Question 203

Slow growth in US incomes during the 1970s and 1980s was primarily due to

(Multiple Choice)

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Question 204

Which of the following firms is most likely to have market power?

(Multiple Choice)

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Question 205

A tax on gasoline encourages people to drive smaller, more fuel-efficient cars. Which principle of economics does this illustrate?

(Multiple Choice)

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Question 206

Prices usually reflect

(Multiple Choice)

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Question 207

The primary determinant of a country's standard of living is

(Multiple Choice)

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Question 208

What are the two reasons for the government to intervene in a market?

(Short Answer)

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Question 209

Thousands of people develop lung cancer from second-hand exposure to cigarette smoke. This is an example of

(Multiple Choice)

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Question 210

Germany could have avoided the high inflation that it experienced in the 1920s by

(Multiple Choice)

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Question 211

Which of the following do economists not generally regard as a legitimate reason for the government to intervene in a market?

(Multiple Choice)

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Question 212

After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?

(Multiple Choice)

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Question 213

Market failure refers to a situation in which the market does not allocate resources efficiently.

(True/False)

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Question 214

Inflation increases the value of money.

(True/False)

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Question 215

In the short run, which of the following rates of growth in the money supply is likely to lead to the highest level of unemployment in the economy?

(Multiple Choice)

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Question 216

Trade between the United States and Guatemala

(Multiple Choice)

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Question 217

Suppose the state of Wyoming passes a law that increases the tax on cigarettes. As a result, smokers who live in Wyoming start purchasing their cigarettes in surrounding states. Which of the following principles does this best illustrate?

(Multiple Choice)

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Question 218

In a market economy, economic activity is guided by

(Multiple Choice)

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Question 219

Variations in the standard of living across countries is due almost entirely to differences in each nation's total output of goods and services.

(True/False)

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Question 220

Showing 201 - 220 of 455

Exam 1: Ten Principles of Economics

The mainstream view among economists is that

Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires.

Slow growth in US incomes during the 1970s and 1980s was primarily due to

Which of the following firms is most likely to have market power?

A tax on gasoline encourages people to drive smaller, more fuel-efficient cars. Which principle of economics does this illustrate?

Prices usually reflect

The primary determinant of a country's standard of living is

What are the two reasons for the government to intervene in a market?

Thousands of people develop lung cancer from second-hand exposure to cigarette smoke. This is an example of

Germany could have avoided the high inflation that it experienced in the 1920s by

Which of the following do economists not generally regard as a legitimate reason for the government to intervene in a market?

After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring Break is still months away, and you may reverse this decision. Which of the following events would prompt you to reverse this decision?

Market failure refers to a situation in which the market does not allocate resources efficiently.

Inflation increases the value of money.

In the short run, which of the following rates of growth in the money supply is likely to lead to the highest level of unemployment in the economy?

Trade between the United States and Guatemala

Suppose the state of Wyoming passes a law that increases the tax on cigarettes. As a result, smokers who live in Wyoming start purchasing their cigarettes in surrounding states. Which of the following principles does this best illustrate?

In a market economy, economic activity is guided by

Variations in the standard of living across countries is due almost entirely to differences in each nation's total output of goods and services.

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

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