Question 1

Productivity is defined as the

Accepted Answer

A)  amount of goods and services produced from each unit of labor input.
B)  number of workers required to produce a given amount of goods and services.
C)  amount of labor that can be saved by replacing workers with machines.
D)  actual amount of effort workers put into an hour of working time.E) A) and B)
F) None of the above

Question 2

Candice is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that

Accepted Answer

A)  people respond to incentives.
B)  rational people think at the margin.
C)  people face tradeoffs.
D)  improvements in efficiency sometimes come at the expense of equality.E) B) and C)
F) A) and B)

Question 3

Tracy quits her job, which pays $25,000 a year, to finish her college degree. Her annual college expenses are $12,000 for tuition and fees and $1,000 for books. What is her opportunity cost of attending college for the year?

Accepted Answer

The answer of Tracy quits her job, which pays $25,000...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

What does the "invisible hand" refers to?

Accepted Answer

How the decisions of...

Question 6

Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth

Accepted Answer

A)  is more efficient and more equal for society.
B)  is more efficient but less equal for society.
C)  is more equal but less efficient for society.
D)  is less equal and less efficient for society.E) A) and D)
F) B) and D)

Question 7

Resources are

Accepted Answer

A)  scarce for households but plentiful for economies.
B)  plentiful for households but scarce for economies.
C)  scarce for households and scarce for economies.
D)  plentiful for households and plentiful for economies.E) A) and D)
F) A) and B)

Question 8

Savion is restoring a car and has already spent $4,000 on the restoration. He expects to be able to sell the car for $5800. Savion discovers that he needs to do an additional $2,400 of work to make the car worth $5,800 to potential buyers. He could also sell the car now, without completing the additional work, for $3,800. What should he do?

Accepted Answer

A)  He should sell the car now for $3,800.
B)  He should keep the car since it wouldn't be rational to spend $6,400 restoring a car and then sell it for only $5,800.
C)  He should complete the additional work and sell the car for $5,800.
D)  It does not matter which action he takes since the outcome will be the same either way.E) B) and D)
F) A) and B)

Question 9

Inflation is the primary determinant of a country's living standards.

Accepted Answer

A) True 
 B)False

Question 10

The ability of an individual to own and exercise control over scarce resources is called

Accepted Answer

A)  market failure.
B)  property rights.
C)  externality.
D)  market power.E) C) and D)
F) A) and B)

Question 11

Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot.

Accepted Answer

A)  The cost of the parking permit is not part of the opportunity cost of attending college if you would not have to pay for parking otherwise.
B)  The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise.
C)  Only half of the cost of the parking permit is part of the opportunity cost of attending college.
D)  The cost of the parking permit is not part of the opportunity cost of attending college under any circumstances.E) B) and C)
F) A) and B)

Question 12

The terms equality and efficiency are similar in that they both refer to benefits to society. However, they are different in that

Accepted Answer

A)  equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.
B)  equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.
C)  equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.
D)  equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.E) All of the above
F) A) and D)

Question 13

Consider Miray's decision to go to college. If she goes to college, she will spend $24,000 on tuition, $12,000 on room and board, and $1,900 on books. If she does not go to college, she will earn $16,000 working in a store and spend $8,000 on room and board. Miray's cost of going to college is

Accepted Answer

A)  $37,900.
B)  $45,900.
C)  $53,900.
D)  $61,900.E) A) and C)
F) B) and C)

Question 14

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 15

Which is the most accurate statement about trade?

Accepted Answer

A)  Trade can make every nation better off.
B)  Trade makes some nations better off and others worse off.
C)  Trading for a good can make a nation better off only if the nation cannot produce that good itself.
D)  Trade helps rich nations and hurts poor nations.E) A) and B)
F) A) and C)

Question 16

A rational decisionmaker

Accepted Answer

A)  ignores marginal changes and focuses instead on "the big picture."
B)  ignores the likely effects of government policies when he or she makes choices.
C)  takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.
D)  takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions.E) None of the above
F) A) and C)

Question 17

Which of the following statements about trade is false?

Accepted Answer

A)  Trade increases competition.
B)  With trade, one country must win and one country must lose.
C)  Bulgaria can benefit, potentially, from trade with any other country.
D)  Trade allows people to buy a greater variety of goods and services at lower cost.E) None of the above
F) A) and D)

Question 18

Economists use the term ______ to refer to a situation in which the market on its own fails to produce an efficient allocation of resources.

Accepted Answer

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

Question 19

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 20

The government can potentially improve market outcomes if market inequalities or market failure exists.

Accepted Answer

A) True 
 B)False

Exam 1: Ten Principles of Economics

What does the "invisible hand" refers to?

Correct Answer
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How the decisions of...
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Productivity is defined as the

Correct Answer
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Which of the following statements about trade is false?

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

Correct Answer
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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?

Correct Answer
verified

Correct Answer
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Correct Answer
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The government can potentially improve market outcomes if market inequalities or market failure exists.

Correct Answer
verified

Resources are

Correct Answer
verified

Correct Answer
verified
The enjoyment you wo...
View Answer

Which is the most accurate statement about trade?

Correct Answer
verified

The terms equality and efficiency are similar in that they both refer to benefits to society. However, they are different in that

Correct Answer
verified

Consider Miray's decision to go to college. If she goes to college, she will spend $24,000 on tuition, $12,000 on room and board, and $1,900 on books. If she does not go to college, she will earn $16,000 working in a store and spend $8,000 on room and board. Miray's cost of going to college is

Correct Answer
verified

Tracy quits her job, which pays $25,000 a year, to finish her college degree. Her annual college expenses are $12,000 for tuition and fees and $1,000 for books. What is her opportunity cost of attending college for the year?

Correct Answer
verified

Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth

Correct Answer
verified

The ability of an individual to own and exercise control over scarce resources is called

Correct Answer
verified

Inflation is the primary determinant of a country's living standards.

Correct Answer
verified

Economists use the term ______ to refer to a situation in which the market on its own fails to produce an efficient allocation of resources.

Correct Answer
verified

Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot.

Correct Answer
verified

A rational decisionmaker

Correct Answer
verified

Exam 1: Ten Principles of Economics

What does the "invisible hand" refers to?

Correct AnswerverifiedHow the decisions of...View AnswerShow Answer

Productivity is defined as the

Correct AnswerverifiedShow Answer

Which of the following statements about trade is false?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The government can potentially improve market outcomes if market inequalities or market failure exists.

Correct AnswerverifiedShow Answer

Resources are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe enjoyment you wo...View AnswerShow Answer

Which is the most accurate statement about trade?

Correct AnswerverifiedShow Answer

The terms equality and efficiency are similar in that they both refer to benefits to society. However, they are different in that

Correct AnswerverifiedShow Answer

Consider Miray's decision to go to college. If she goes to college, she will spend $24,000 on tuition, $12,000 on room and board, and $1,900 on books. If she does not go to college, she will earn $16,000 working in a store and spend $8,000 on room and board. Miray's cost of going to college is

Correct AnswerverifiedShow Answer

Tracy quits her job, which pays $25,000 a year, to finish her college degree. Her annual college expenses are $12,000 for tuition and fees and $1,000 for books. What is her opportunity cost of attending college for the year?

Correct AnswerverifiedShow Answer

Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth

Correct AnswerverifiedShow Answer

The ability of an individual to own and exercise control over scarce resources is called

Correct AnswerverifiedShow Answer

Inflation is the primary determinant of a country's living standards.

Correct AnswerverifiedShow Answer

Economists use the term ______ to refer to a situation in which the market on its own fails to produce an efficient allocation of resources.

Correct AnswerverifiedShow Answer

Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot.

Correct AnswerverifiedShow Answer

A rational decisionmaker

Correct AnswerverifiedShow Answer

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How the decisions of...
View Answer

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The enjoyment you wo...
View Answer

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