Question 1

Figure 1-4  
-Refer to Figure 1-4.Which of the following statements is false?

Accepted Answer

A)  The slope of the tangent at E is positive. 
B)  The slope of the tangent at F is negative. 
C)  The slope of the tangent at E and the slope of the tangent at F are equal. 
D)  Neither the slope of the tangent at E nor the slope of the tangent at F are equal to zero. 
A)  The slope of the tangent at E is positive. 
B)  The slope of the tangent at F is negative. 
C)  The slope of the tangent at E and the slope of the tangent at F are equal. 
D)  Neither the slope of the tangent at E nor the slope of the tangent at F are equal to zero.

Question 2

DeShawn's Detailing is a service that details cars at customers' homes or places of work.DeShawn's cost for a basic detailing package is $40,and he charges $75 for this service.For a total price of $90,DeShawn will also detail the car's engine,a service that adds an additional $20 to the total cost of the package.What is DeShawn's marginal benefit if he sells a basic detailing package?

Accepted Answer

A)  $35 
B)  $75 
C)  He incurs a marginal loss of $15, not a marginal benefit. 
D)  The marginal benefit cannot be determined. 
A)  $35 
B)  $75 
C)  He incurs a marginal loss of $15, not a marginal benefit. 
D)  The marginal benefit cannot be determined.

Question 3

Examining the conditions that could lead to unemployment in an economy is an example of a microeconomics topic.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is true?

Accepted Answer

A)  Anytime you have to decide which action to take, you are experiencing economic equity. 
B)  Trade-offs do not apply when consumers purchase a product for which there is excess supply, such as in 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 resources are unlimited. 
A)  Anytime you have to decide which action to take, you are experiencing economic equity. 
B)  Trade-offs do not apply when consumers purchase a product for which there is excess supply, such as in 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 resources are unlimited.

Question 5

What is marginal benefit?

Accepted Answer

Marginal benefit is

Question 6

Productive efficiency is achieved when

Accepted Answer

A)  firms add a low profit margin to the goods and services they produce. 
B)  firms produce the goods and services that consumers value most. 
C)  firms produce goods and services at the lowest cost. 
D)  there are no shortages or surpluses in the market. 
A)  firms add a low profit margin to the goods and services they produce. 
B)  firms produce the goods and services that consumers value most. 
C)  firms produce goods and services at the lowest cost. 
D)  there are no shortages or surpluses in the market.

Question 7

Allocative efficiency best explains ________,and productive efficiency best explains ________.

Accepted Answer

A)  how something will be produced; when something will be produced 
B)  when something will be produced; why something will be produced 
C)  why something will be produced; what will be produced 
D)  what will be produced; how something will be produced 
A)  how something will be produced; when something will be produced 
B)  when something will be produced; why something will be produced 
C)  why something will be produced; what will be produced 
D)  what will be produced; how something will be produced

Question 8

Economic models do all of the following except

Accepted Answer

A)  answer economic questions. 
B)  portray reality in all its minute details. 
C)  make economic ideas explicit and concrete for use by decision makers. 
D)  simplify some aspect of economic life. 
A)  answer economic questions. 
B)  portray reality in all its minute details. 
C)  make economic ideas explicit and concrete for use by decision makers. 
D)  simplify some aspect of economic life.

Question 9

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces,then $50 is the marginal cost of producing the 5th necklace.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a normative economic statement?

Accepted Answer

A)  The price of wheat is too low. 
B)  The current low price of wheat is the result of increased worldwide supply. 
C)  When the price of wheat falls, the quantity of wheat purchased rises. 
D)  When the price of wheat falls, the cost of wheat-based products falls. 
A)  The price of wheat is too low. 
B)  The current low price of wheat is the result of increased worldwide supply. 
C)  When the price of wheat falls, the quantity of wheat purchased rises. 
D)  When the price of wheat falls, the cost of wheat-based products falls.

Question 11

When every good or service is produced up to the point where the last unit provides ________,allocative efficiency occurs.

Accepted Answer

A)  a marginal benefit to society equal to the marginal cost of producing it 
B)  a marginal benefit to society greater than the marginal cost of producing it 
C)  a marginal benefit to society less than the marginal cost of producing it 
D)  a marginal benefit to society equal to zero 
A)  a marginal benefit to society equal to the marginal cost of producing it 
B)  a marginal benefit to society greater than the marginal cost of producing it 
C)  a marginal benefit to society less than the marginal cost of producing it 
D)  a marginal benefit to society equal to zero

Question 12

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

Accepted Answer

A)  revenue received from 
B)  extra cost of 
C)  total value of 
D)  sales tax on 
A)  revenue received from 
B)  extra cost of 
C)  total value of 
D)  sales tax on

Question 13

Explain the economic assumption that 'people are rational.'

Accepted Answer

'People are rational' means that economi

Question 14

Which of the following statements is false?

Accepted Answer

A)  An inverse relationship has a negative slope value. 
B)  A direct relationship has a positive slope value. 
C)  A curved line has slope values that change at every point. 
D)  A straight line has a slope of zero. 
A)  An inverse relationship has a negative slope value. 
B)  A direct relationship has a positive slope value. 
C)  A curved line has slope values that change at every point. 
D)  A straight line has a slope of zero.

Question 15

The highest valued alternative that must be given up to engage in an activity is the definition of

Accepted Answer

A)  economic equity. 
B)  marginal benefit. 
C)  opportunity cost. 
D)  marginal cost. 
A)  economic equity. 
B)  marginal benefit. 
C)  opportunity cost. 
D)  marginal cost.

Question 16

Optimal decisions are made at the point where marginal cost equals zero.

Accepted Answer

A) True 
 B)False

Question 17

Consider the following economic agents: 
a.the government
b. consumers
c.producers
Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

Accepted Answer

A)  The government 
B)  Producers 
C)  Consumers 
D)  Consumers and producers 
A)  The government 
B)  Producers 
C)  Consumers 
D)  Consumers and producers

Question 18

Marginal benefit refers to the additional benefit that your activity provides to you.

Accepted Answer

A) True 
 B)False

Question 19

DeShawn's Detailing is a service that details cars at customers' homes or places of work.DeShawn's cost for a basic detailing package is $40,and he charges $75 for this service.For a total price of $90,DeShawn will also detail the car's engine,a service that adds an additional $20 to the total cost of the package.What is the marginal cost of adding the engine detailing to the basic detailing package?

Accepted Answer

A)  $20 
B)  $30 
C)  $60 
D)  $60 plus the value of his time 
A)  $20 
B)  $30 
C)  $60 
D)  $60 plus the value of his time

Question 20

Automobile manufacturers produce a range of automobiles such as sports utility vehicles,luxury sedans,pickup trucks and compact cars.What fundamental economic question are they addressing by making this range of products?

Accepted Answer

A)  How will goods that consumers want be produced? 
B)  Why should a variety of automobiles be produced? 
C)  What will be produced? 
D)  For whom will automobiles be produced? 
A)  How will goods that consumers want be produced? 
B)  Why should a variety of automobiles be produced? 
C)  What will be produced? 
D)  For whom will automobiles be produced?

Figure 1-4 -Refer to Figure 1-4.Which of the following statements is false?

Examining the conditions that could lead to unemployment in an economy is an example of a microeconomics topic.

Which of the following statements is true?

What is marginal benefit?

Productive efficiency is achieved when

Allocative efficiency best explains ,and productive efficiency best explains .

Economic models do all of the following except

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces,then $50 is the marginal cost of producing the 5th necklace.

Which of the following is a normative economic statement?

When every good or service is produced up to the point where the last unit provides ________,allocative efficiency occurs.

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

Explain the economic assumption that 'people are rational.'

Which of the following statements is false?

The highest valued alternative that must be given up to engage in an activity is the definition of

Optimal decisions are made at the point where marginal cost equals zero.

Consider the following economic agents: a.the government b. consumers c.producers Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

Marginal benefit refers to the additional benefit that your activity provides to you.

Automobile manufacturers produce a range of automobiles such as sports utility vehicles,luxury sedans,pickup trucks and compact cars.What fundamental economic question are they addressing by making this range of products?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 1: Economics: Foundations and Models

Figure 1-4 -Refer to Figure 1-4.Which of the following statements is false?

Examining the conditions that could lead to unemployment in an economy is an example of a microeconomics topic.

Which of the following statements is true?

What is marginal benefit?

Productive efficiency is achieved when

Allocative efficiency best explains ________,and productive efficiency best explains ________.

Economic models do all of the following except

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces,then $50 is the marginal cost of producing the 5th necklace.

Which of the following is a normative economic statement?

When every good or service is produced up to the point where the last unit provides ________,allocative efficiency occurs.

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

Explain the economic assumption that 'people are rational.'

Which of the following statements is false?

The highest valued alternative that must be given up to engage in an activity is the definition of

Optimal decisions are made at the point where marginal cost equals zero.

Consider the following economic agents: a.the government b. consumers c.producers Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

Marginal benefit refers to the additional benefit that your activity provides to you.

Automobile manufacturers produce a range of automobiles such as sports utility vehicles,luxury sedans,pickup trucks and compact cars.What fundamental economic question are they addressing by making this range of products?

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Allocative efficiency best explains ,and productive efficiency best explains .