Question 1

Which of the following is not a resource for a society?

Accepted Answer

A) ​capital goods, like factories and machine tools 
B) ​entrepreneurship 
C) ​legal institutions 
D) ​labor 
A) ​capital goods, like factories and machine tools 
B) ​entrepreneurship 
C) ​legal institutions 
D) ​labor

Question 2

Marginal thinking is best demonstrated by:​

Accepted Answer

A) ​choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time. 
B) ​deciding to never purchase a coat made with animal skins or furs. 
C) ​acquiring all the information relevant to a choice before making that choice. 
D) ​measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake. 
A) ​choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time. 
B) ​deciding to never purchase a coat made with animal skins or furs. 
C) ​acquiring all the information relevant to a choice before making that choice. 
D) ​measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.

Question 3

Specialization:

Accepted Answer

A) ​leads to greater self-sufficiency. 
B) ​can lead to an increase in overall production. 
C) ​is always the result of an inefficient use of resources. 
D) ​helps workers to develop skills by working on a large number of tasks. 
A) ​leads to greater self-sufficiency. 
B) ​can lead to an increase in overall production. 
C) ​is always the result of an inefficient use of resources. 
D) ​helps workers to develop skills by working on a large number of tasks.

Question 4

A nation has a comparative advantage in the production of cars over another nation if:

Accepted Answer

A) ​it can produce cars with fewer resources than the other country. 
B) ​it can produce cars at a lower opportunity cost than the other country. 
C) ​it can produce cars at a higher opportunity cost than the other country. 
D) ​it can produce cars at the same opportunity cost and its consumers have a stronger preference for cars than consumers in the other country. 
A) ​it can produce cars with fewer resources than the other country. 
B) ​it can produce cars at a lower opportunity cost than the other country. 
C) ​it can produce cars at a higher opportunity cost than the other country. 
D) ​it can produce cars at the same opportunity cost and its consumers have a stronger preference for cars than consumers in the other country.

Question 5

The most meaningful measure of economic growth is

Accepted Answer

A) ​the employment rate. 
B) ​the unemployment rate. 
C) ​real GDP. 
D) ​real GDP per capita. 
A) ​the employment rate. 
B) ​the unemployment rate. 
C) ​real GDP. 
D) ​real GDP per capita.

Question 6

Which of the following is an example of a capital resource?​

Accepted Answer

A) ​an unskilled worker 
B) ​a large coal deposit 
C) ​a fishing boat 
D) ​yellow-fin tuna 
A) ​an unskilled worker 
B) ​a large coal deposit 
C) ​a fishing boat 
D) ​yellow-fin tuna

Question 7

Trent decides to spend an hour playing basketball rather than studying. His opportunity cost is:

Accepted Answer

A) ​nothing because he enjoys playing basketball more than studying. 
B) ​the foregone benefit to his grades from studying for an hour. 
C) ​the increase in skill he obtains from playing basketball for that hour. 
D) ​nothing because he had a free pass into the sports complex to play basketball. 
A) ​nothing because he enjoys playing basketball more than studying. 
B) ​the foregone benefit to his grades from studying for an hour. 
C) ​the increase in skill he obtains from playing basketball for that hour. 
D) ​nothing because he had a free pass into the sports complex to play basketball.

Question 8

Which of the following serve as the language of the market system?

Accepted Answer

A) ​Monetary and fiscal policies 
B) ​Volatility 
C) ​Market prices 
D) ​Lawsuits 
A) ​Monetary and fiscal policies 
B) ​Volatility 
C) ​Market prices 
D) ​Lawsuits

Question 9

The opportunity cost of attending college is likely to be higher for a high school graduate who leaves a job grilling hamburgers than it is for a high school dropout who leaves a job working as a computer network administrator.​

Accepted Answer

A) True 
 B)False

Question 10

The rule of rational choice suggests that you will engage in more of an activity if:

Accepted Answer

A) ​the total benefit from that activity exceeds the total cost of the activity. 
B) ​the total cost from that activity exceeds the total benefit of the activity. 
C) ​the additional cost incurred as a result of the activity exceeds the additional benefit received. 
D) ​the additional benefit received as a result of the activity exceeds the additional cost incurred. 
A) ​the total benefit from that activity exceeds the total cost of the activity. 
B) ​the total cost from that activity exceeds the total benefit of the activity. 
C) ​the additional cost incurred as a result of the activity exceeds the additional benefit received. 
D) ​the additional benefit received as a result of the activity exceeds the additional cost incurred.

Question 11

Which of the following is an example of a positive incentive?

Accepted Answer

A) ​You expect to be grounded if your grades slip below a B average. 
B) ​You expect to receive a scholarship if your grades remain high. 
C) ​Desserts will be unavailable at the cafeteria if you arrive after 7:00 p.m. 
D) ​Campus police institute a policy of impounding cars parked in delivery zone spaces. 
A) ​You expect to be grounded if your grades slip below a B average. 
B) ​You expect to receive a scholarship if your grades remain high. 
C) ​Desserts will be unavailable at the cafeteria if you arrive after 7:00 p.m. 
D) ​Campus police institute a policy of impounding cars parked in delivery zone spaces.

Question 12

How would an economist respond to the following statement: "Wanting more goods makes us greedy."

Accepted Answer

Economists do not view the unlimited hum

Question 13

Which of the following is not true?

Accepted Answer

A) ​Voluntary exchange is expected to be advantageous to both parties to the exchange. 
B) ​What one trader gains from a trade, the other must lose. 
C) ​If one party to a potential voluntary trade decides it does not advance his interests, he can veto the potential trade. 
D) ​The expectation of gain motivates people to engage in trade. 
A) ​Voluntary exchange is expected to be advantageous to both parties to the exchange. 
B) ​What one trader gains from a trade, the other must lose. 
C) ​If one party to a potential voluntary trade decides it does not advance his interests, he can veto the potential trade. 
D) ​The expectation of gain motivates people to engage in trade.

Question 14

Everyone faces scarcity.​

Accepted Answer

A) True 
 B)False

Question 15

Say you had an 8 A.M. economics class, and you only come to campus to attend your economics class. The cost of coming to the economics class would then include:

Accepted Answer

A) ​the value of the time it took to drive to campus. 
B) ​the cost of the gasoline it took to get to campus. 
C) ​the cost of insuring the car for that day. 
D) ​a.and b 
A) ​the value of the time it took to drive to campus. 
B) ​the cost of the gasoline it took to get to campus. 
C) ​the cost of insuring the car for that day. 
D) ​a.and b

Question 16

Every time an individual decides to try out new equipment, or finds better ways to manage money, he or she is exhibiting aspects of:​

Accepted Answer

A) ​money management. 
B) ​entrepreneurship. 
C) ​strategic management. 
D) ​capital management. 
A) ​money management. 
B) ​entrepreneurship. 
C) ​strategic management. 
D) ​capital management.

Question 17

Which of the following is false?

Accepted Answer

A) ​Markets can make products better. 
B) ​Markets can make products cheaper. 
C) ​Markets can create new products. 
D) ​Markets only result in producing those goods and services that are socially desirable. 
A) ​Markets can make products better. 
B) ​Markets can make products cheaper. 
C) ​Markets can create new products. 
D) ​Markets only result in producing those goods and services that are socially desirable.

Question 18

Individuals:

Accepted Answer

A) ​respond to incentives in predictable ways. 
B) ​decrease the level of an activity in response to negative incentives. 
C) ​respond to positive incentives by increasing the level of activity. 
D) ​do all of the above. 
A) ​respond to incentives in predictable ways. 
B) ​decrease the level of an activity in response to negative incentives. 
C) ​respond to positive incentives by increasing the level of activity. 
D) ​do all of the above.

Question 19

Which of the following is true?

Accepted Answer

A) ​Producing too much pollution could be a market failure, but producing too little research cannot. 
B) ​Producing too little research could be a market failure, but producing too much pollution cannot. 
C) ​Both producing too much pollution and producing too little research could be market failures. 
D) ​Market failures mean that government intervention in those areas will improve the results. 
A) ​Producing too much pollution could be a market failure, but producing too little research cannot. 
B) ​Producing too little research could be a market failure, but producing too much pollution cannot. 
C) ​Both producing too much pollution and producing too little research could be market failures. 
D) ​Market failures mean that government intervention in those areas will improve the results.

Question 20

Which of the following is true?

Accepted Answer

A) ​Markets determine what goods are going to be produced, but not the distribution of output among members of society. 
B) ​Markets determine the distribution of output among members of society, but not what goods are going to be produced. 
C) ​Markets determine both what goods are going to be produced and the distribution of output among members of society. 
D) ​Government can redistribute income without changing what will be produced in a society. 
A) ​Markets determine what goods are going to be produced, but not the distribution of output among members of society. 
B) ​Markets determine the distribution of output among members of society, but not what goods are going to be produced. 
C) ​Markets determine both what goods are going to be produced and the distribution of output among members of society. 
D) ​Government can redistribute income without changing what will be produced in a society.

Exam 2: Eight Powerful Ideas

Which of the following is not a resource for a society?

Marginal thinking is best demonstrated by:​

Specialization:

A nation has a comparative advantage in the production of cars over another nation if:

The most meaningful measure of economic growth is

Which of the following is an example of a capital resource?​

Trent decides to spend an hour playing basketball rather than studying. His opportunity cost is:

Which of the following serve as the language of the market system?

The opportunity cost of attending college is likely to be higher for a high school graduate who leaves a job grilling hamburgers than it is for a high school dropout who leaves a job working as a computer network administrator.​

The rule of rational choice suggests that you will engage in more of an activity if:

Which of the following is an example of a positive incentive?

How would an economist respond to the following statement: "Wanting more goods makes us greedy."

Which of the following is not true?

Everyone faces scarcity.​

Say you had an 8 A.M. economics class, and you only come to campus to attend your economics class. The cost of coming to the economics class would then include:

Every time an individual decides to try out new equipment, or finds better ways to manage money, he or she is exhibiting aspects of:​

Which of the following is false?

Individuals:

Which of the following is true?

Which of the following is true?

The Role and Method of Economics

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Filters

Marginal thinking is best demonstrated by:

Which of the following is an example of a capital resource?

The opportunity cost of attending college is likely to be higher for a high school graduate who leaves a job grilling hamburgers than it is for a high school dropout who leaves a job working as a computer network administrator.

Everyone faces scarcity.

Every time an individual decides to try out new equipment, or finds better ways to manage money, he or she is exhibiting aspects of: