Question 1

Government policies that improve equality usually increase efficiency at the same time.

Accepted Answer

A) True 
 B)False  False

Question 2

What is another word for "marginal"?

Accepted Answer

incremental; additional

Question 3

Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor,

Accepted Answer

A)  only Dale is made better off by trade. 
B)  only Terrence is made better off by trade. 
C)  both Dale and Terrence are made better off by trade. 
D)  neither Dale nor Terrence are made better off by trade. 
A)  only Dale is made better off by trade. 
B)  only Terrence is made better off by trade. 
C)  both Dale and Terrence are made better off by trade. 
D)  neither Dale nor Terrence are made better off by trade. C

Question 4

Which of the following is a principle concerning how people interact?

Accepted Answer

A)  Markets are usually a good way to organize economic activity. 
B)  Rational people think at the margin. 
C)  People respond to incentives. 
D)  All of the above are correct. 
A)  Markets are usually a good way to organize economic activity. 
B)  Rational people think at the margin. 
C)  People respond to incentives. 
D)  All of the above are correct.

Question 5

Which of the following is not an example of scarcity?

Accepted Answer

A)  Only some people can afford to buy a BMW automobile. 
B)  Every individual in society cannot attain the highest standard of living to which he or she might aspire. 
C)  Miranda has an unlimited supply of oranges in her orchard. 
D)  Each member of a household cannot get everything he or she wants. 
A)  Only some people can afford to buy a BMW automobile. 
B)  Every individual in society cannot attain the highest standard of living to which he or she might aspire. 
C)  Miranda has an unlimited supply of oranges in her orchard. 
D)  Each member of a household cannot get everything he or she wants.

Question 6

When the United States trades with China,

Accepted Answer

A)  both countries will likely benefit. 
B)  only United States will benefit. 
C)  only China will benefit. 
D)  neither country will benefit. 
A)  both countries will likely benefit. 
B)  only United States will benefit. 
C)  only China will benefit. 
D)  neither country will benefit.

Question 7

Scenario 1-4 You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for three hours. If you go to the movies, you will spend $12.00 on a ticket and $4.75 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 15 points.
-Refer to Scenario 1-4. What is your opportunity cost of studying economics?

Accepted Answer

The enjoyment you wo

Question 8

For markets to work well, there must be

Accepted Answer

A)  market power. 
B)  a central planner. 
C)  property rights. 
D)  abundant, not scarce, resources. 
A)  market power. 
B)  a central planner. 
C)  property rights. 
D)  abundant, not scarce, resources.

Question 9

Benefits from trade would not include

Accepted Answer

A)  the ability of people and nations to specialize. 
B)  a greater variety of goods and services becoming available. 
C)  less competition. 
D)  lower prices. 
A)  the ability of people and nations to specialize. 
B)  a greater variety of goods and services becoming available. 
C)  less competition. 
D)  lower prices.

Question 10

Economics is the study of ______.

Accepted Answer

how societ

Question 11

Scenario 1-1
You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for three hours. If you go to the movies, you will spend $8.00 on a ticket and $4.50 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 10 points.
-Refer to Scenario 1-1. What is your opportunity cost of going to the movies?

Accepted Answer

$12.50 and

Question 12

Scenario 1-3
It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators.
-Refer to Scenario 1-3. What is the company's average cost?

Accepted Answer

The answer of Scenario 1-3
It costs a company $35,000 to...

Question 13

Communist countries worked under the premise that

Accepted Answer

A)  markets were the best way to organize economic activity. 
B)  central planners were in the best position to determine the allocation of scarce resources in the economy. 
C)  households and firms, guided by an "invisible hand," could achieve the most efficient allocation of scarce resources. 
D)  allowing the market forces of supply and demand to operate with no government intervention would achieve the most efficient allocation of scarce resources. 
A)  markets were the best way to organize economic activity. 
B)  central planners were in the best position to determine the allocation of scarce resources in the economy. 
C)  households and firms, guided by an "invisible hand," could achieve the most efficient allocation of scarce resources. 
D)  allowing the market forces of supply and demand to operate with no government intervention would achieve the most efficient allocation of scarce resources.

Question 14

Explain the concept of externality and give an example.

Accepted Answer

The impact of one pe

Question 15

What you give up to obtain an item is called your

Accepted Answer

A)  opportunity cost. 
B)  explicit cost. 
C)  monetary cost. 
D)  direct cost. 
A)  opportunity cost. 
B)  explicit cost. 
C)  monetary cost. 
D)  direct cost.

Question 16

The principle that trade can make everyone better off applies to

Accepted Answer

A)  individuals. 
B)  families. 
C)  countries. 
D)  All of the above 
A)  individuals. 
B)  families. 
C)  countries. 
D)  All of the above

Question 17

Suppose that a country that has a high level of output per person agrees to trade with a country that has a low level of output per person. Which country can benefit?

Accepted Answer

A)  only the one with a low level of output per person. 
B)  only the one with a high level of output per person. 
C)  both 
D)  neither 
A)  only the one with a low level of output per person. 
B)  only the one with a high level of output per person. 
C)  both 
D)  neither

Question 18

It costs a furniture company $8,750 to produce 25 tables. The company's total cost will be $9,125 if it produces a 26th table. If the company produces 26 tables, then

Accepted Answer

A)  its average cost is greater than its marginal cost. 
B)  its average cost and its marginal cost are equal. 
C)  its average cost is less than its marginal cost. 
D)  This cannot be determined from the information given. 
A)  its average cost is greater than its marginal cost. 
B)  its average cost and its marginal cost are equal. 
C)  its average cost is less than its marginal cost. 
D)  This cannot be determined from the information given.

Question 19

In the short-run, society faces a tradeoff between inflation and unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Explain how trade with other countries is beneficial.

Accepted Answer

Trade allows countri

Government policies that improve equality usually increase efficiency at the same time.

What is another word for "marginal"?

Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor,

Which of the following is a principle concerning how people interact?

Which of the following is not an example of scarcity?

When the United States trades with China,

For markets to work well, there must be

Benefits from trade would not include

Economics is the study of ______.

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3. What is the company's average cost?

Communist countries worked under the premise that

Explain the concept of externality and give an example.

What you give up to obtain an item is called your

The principle that trade can make everyone better off applies to

Suppose that a country that has a high level of output per person agrees to trade with a country that has a low level of output per person. Which country can benefit?

It costs a furniture company $8,750 to produce 25 tables. The company's total cost will be $9,125 if it produces a 26th table. If the company produces 26 tables, then

In the short-run, society faces a tradeoff between inflation and unemployment.

Explain how trade with other countries is beneficial.

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 of Microeconomics

Filters

Exam 1: Ten Principles of Economics

Government policies that improve equality usually increase efficiency at the same time.

What is another word for "marginal"?

Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor,

Which of the following is a principle concerning how people interact?

Which of the following is not an example of scarcity?

When the United States trades with China,

For markets to work well, there must be

Benefits from trade would not include

Economics is the study of ______.

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators. The company's cost will be $35,070 if it produces an additional graphing calculator. The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3. What is the company's average cost?

Communist countries worked under the premise that

Explain the concept of externality and give an example.

What you give up to obtain an item is called your

The principle that trade can make everyone better off applies to

Suppose that a country that has a high level of output per person agrees to trade with a country that has a low level of output per person. Which country can benefit?

It costs a furniture company $8,750 to produce 25 tables. The company's total cost will be $9,125 if it produces a 26th table. If the company produces 26 tables, then

In the short-run, society faces a tradeoff between inflation and unemployment.

Explain how trade with other countries is beneficial.

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 of Microeconomics

Filters