Question 1

Trade with any nation can be mutually beneficial.

Accepted Answer

A) True 
 B)False

Question 2

Economists use the term to refer to fluctuations in economic activity, such as employment and production.

Accepted Answer

The answer of Economists use the term to refer to...

Question 3

For most students, the earnings they give up to attend college are

Accepted Answer

A)  a minor cost when compared to the costs of tuition, room and board, and the like. 
B)  the single largest cost of their education. 
C)  about equal to the costs of room and board at college. 
D)  not considered true costs by an economist. 
A)  a minor cost when compared to the costs of tuition, room and board, and the like. 
B)  the single largest cost of their education. 
C)  about equal to the costs of room and board at college. 
D)  not considered true costs by an economist.

Question 4

Suppose that a country that has a high average wage level agrees to trade with a country that has a low average wage level. 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 5

In a particular country in 1999, the average worker had to work 20 hours to produce 55 units of output. In that same country in 2009, the average worker needed to work 28 hours to produce 77 units of output. In that country, the productivity of the average worker

Accepted Answer

A)  increased by 2 percent between 1999 and 2009. 
B)  increased by 5 percent between 1999 and 2009. 
C)  remained unchanged between 1999 and 2009. 
D)  decreased by 3 percent between 1999 and 2009. 
A)  increased by 2 percent between 1999 and 2009. 
B)  increased by 5 percent between 1999 and 2009. 
C)  remained unchanged between 1999 and 2009. 
D)  decreased by 3 percent between 1999 and 2009.

Question 6

Use the following Scenario to answer the question scenario 1-6 :
It costs a company $30,000 to produce 600 heart rate monitors. The company's cost will be $30,070 if it produces an additional heart rate monitor. The company is currently producing 600 heart rate monitors.
-Refer to Scenario 1-6. What is the minimum price that would induce this company to produce the 601st heart rate monitor?

Accepted Answer

The answer of Use the following Scenario to answer the...

Question 7

When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included?

Accepted Answer

A)  Your full room-and-board expenses should always be included. 
B)  None of your room-and-board expenses should ever be included. 
C)  You should include only the amount by which your room-and-board expenses exceed the income you earn while attending college. 
D)  You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food if you were not in college. 
A)  Your full room-and-board expenses should always be included. 
B)  None of your room-and-board expenses should ever be included. 
C)  You should include only the amount by which your room-and-board expenses exceed the income you earn while attending college. 
D)  You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food if you were not in college.

Question 8

A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff between

Accepted Answer

A)  guns and butter. 
B)  efficiency and equality. 
C)  inflation and unemployment. 
D)  work and leisure. 
A)  guns and butter. 
B)  efficiency and equality. 
C)  inflation and unemployment. 
D)  work and leisure.

Question 9

Inflation increases the value of money.

Accepted Answer

A) True 
 B)False

Question 10

Economists are particularly adept at understanding that people respond to

Accepted Answer

A)  laws. 
B)  incentives. 
C)  punishments more than rewards. 
D)  rewards more than punishments. 
A)  laws. 
B)  incentives. 
C)  punishments more than rewards. 
D)  rewards more than punishments.

Question 11

Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight. The marginal cost per room per night

Accepted Answer

A)  is $40. 
B)  is $80. 
C)  is $120. 
D)  cannot be determined from the information given. 
A)  is $40. 
B)  is $80. 
C)  is $120. 
D)  cannot be determined from the information given.

Question 12

Which of the following statements about markets is most accurate?

Accepted Answer

A)  Markets are usually a good way to organize economic activity. 
B)  Markets are usually inferior to central planning as a way to organize economic activity. 
C)  Markets fail and are therefore not an acceptable way to organize economic activity. 
D)  Markets are a good way to organize economic activity in developed nations, but not in less developed nations. 
A)  Markets are usually a good way to organize economic activity. 
B)  Markets are usually inferior to central planning as a way to organize economic activity. 
C)  Markets fail and are therefore not an acceptable way to organize economic activity. 
D)  Markets are a good way to organize economic activity in developed nations, but not in less developed nations.

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

The opportunity cost of an item is

Accepted Answer

A)  the number of hours needed to earn money to buy the item. 
B)  what you give up to get that item. 
C)  usually less than the dollar value of the item. 
D)  the dollar value of the item. 
A)  the number of hours needed to earn money to buy the item. 
B)  what you give up to get that item. 
C)  usually less than the dollar value of the item. 
D)  the dollar value of the item.

Question 16

A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies

Accepted Answer

A)  enhance equality. 
B)  reduce efficiency. 
C)  reduce the reward for working hard. 
D)  All of the above are correct. 
A)  enhance equality. 
B)  reduce efficiency. 
C)  reduce the reward for working hard. 
D)  All of the above are correct.

Question 17

A marginal change is a small incremental adjustment to an existing plan of action.

Accepted Answer

A) True 
 B)False

Question 18

Suppose one county in Missouri decides it wants to reduce alcohol consumption, so the county passes a law that raises the price of a bottle of beer by $1. As a result, people drive to other counties to drink alcohol, which results in an increase in drunk driving. This illustrates the principle that people respond to incentives.

Accepted Answer

A) True 
 B)False

Question 19

Use the following Scenario to answer the question 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 going to the movies?

Accepted Answer

$16.75 and

Question 20

To say people respond to incentives means that people may alter their decisions when the costs and benefits of an action change.

Accepted Answer

A) True 
 B)False

Trade with any nation can be mutually beneficial.

Economists use the term to refer to fluctuations in economic activity, such as employment and production.

For most students, the earnings they give up to attend college are

Suppose that a country that has a high average wage level agrees to trade with a country that has a low average wage level. Which country can benefit?

In a particular country in 1999, the average worker had to work 20 hours to produce 55 units of output. In that same country in 2009, the average worker needed to work 28 hours to produce 77 units of output. In that country, the productivity of the average worker

When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included?

A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff between

Inflation increases the value of money.

Economists are particularly adept at understanding that people respond to

Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight. The marginal cost per room per night

Which of the following statements about markets is most accurate?

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

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

The opportunity cost of an item is

A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies

A marginal change is a small incremental adjustment to an existing plan of action.

To say people respond to incentives means that people may alter their decisions when the costs and benefits of an action change.

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Exam 1: Ten Principles of Economics

Trade with any nation can be mutually beneficial.

Economists use the term to refer to fluctuations in economic activity, such as employment and production.

For most students, the earnings they give up to attend college are

Suppose that a country that has a high average wage level agrees to trade with a country that has a low average wage level. Which country can benefit?

In a particular country in 1999, the average worker had to work 20 hours to produce 55 units of output. In that same country in 2009, the average worker needed to work 28 hours to produce 77 units of output. In that country, the productivity of the average worker

When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included?

A typical society strives to get the most it can from its scarce resources. At the same time, the society attempts to distribute the benefits of those resources to the members of the society in a fair manner. In other words, the society faces a tradeoff between

Inflation increases the value of money.

Economists are particularly adept at understanding that people respond to

Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight. The marginal cost per room per night

Which of the following statements about markets is most accurate?

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

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

The opportunity cost of an item is

A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies

A marginal change is a small incremental adjustment to an existing plan of action.

To say people respond to incentives means that people may alter their decisions when the costs and benefits of an action change.

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters