Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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) B) and D)
F) A) and B)

Question 3

A tradeoff exists between a clean environment and a higher level of income in that

Accepted Answer

A)  studies show that individuals with higher levels of income pollute less than low-income individuals.
B)  efforts to reduce pollution typically are not completely successful.
C)  laws that reduce pollution raise costs of production and reduce incomes.
D)  employing individuals to clean up pollution causes increases in employment and income.E) C) and D)
F) A) and C)

Question 4

When the government redistributes income from the wealthy to the poor,

Accepted Answer

A)  efficiency is improved, but equality is not.
B)  equality is improved, but efficiency is not.
C)  both efficiency and equality are improved.
D)  neither efficiency nor equality are improved.E) All of the above
F) A) and D)

Question 5

If the United States decides to trade with Yemen, we know that

Accepted Answer

A)  Yemen will benefit, but trade with a less developed country could not benefit the United States.
B)  it will not benefit Yemen because workers in the United States are more productive.
C)  Yemen and the United States can both benefit.
D)  it will not benefit either country because their cultural differences are too vast.E) A) and C)
F) All of the above

Question 6

Which of the following is not subject to scarcity?​

Accepted Answer

A)  ​water
B)  ​steel
C)  ​diamonds
D)  none of the aboveE) A) and B)
F) A) and C)

Question 7

Melinda quits her job at a bank, which pays $30,000 a year, to enroll in a two-year graduate program. Her annual school expenses are $22,000 for tuition and fees and $2,000 for books. What is her opportunity cost of attending the two-year graduate program?

Accepted Answer

The answer of Melinda quits her job at a bank,...

Question 8

When a single person (or small group)  has the ability to influence market prices, there is

Accepted Answer

A)  competition.
B)  market power.
C)  an externality.
D)  a lack of property rights.E) All of the above
F) None of the above

Question 9

Which of the following is an example of something economists study?

Accepted Answer

A)  Mitch chooses to work overtime to earn extra income for his family.
B)  Megan sells her physics textbook from last semester to her roommate for half the price of a new textbook.
C)  The unemployment rate in the United States has fallen by two percentage points in the last few years.
D)  All of the above are correct.E) B) and D)
F) All of the above

Question 10

The income of a typical worker in a country is most closely linked to which of the following?

Accepted Answer

A)  population
B)  productivity
C)  market power
D)  government policiesE) All of the above
F) None of the above

Question 11

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 12

One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources.

Accepted Answer

A) True 
 B)False

Question 13

It costs a meat-processing company $50,000 to produce 5,000 pounds of steak. The company's cost will be $50,009 if it produces an additional pound of steak. If the company produces 5,001 pounds of steak 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)  there is insufficient information to compute average and marginal costs.E) C) and D)
F) None of the above

Question 14

Scenario 1-2
Suppose that you have a choice between going to the movies with a friend for two hours or working at your job. If you go to the movies, you will spend $7 on a ticket and $5 on popcorn. If you choose to work, you will earn $10 an hour.
-Refer to Scenario 1-2. What is your opportunity cost of working?

Accepted Answer

The enjoyment you wo...

Question 15

In a particular country in 1998, the average worker needed to work 40 hours to produce 100 units of output. In that same country in 2008, the average worker needed to work 36 hours to produce 72 units of output. In that country, the productivity of the average worker

Accepted Answer

A)  decreased between 1998 and 2008, so we would expect the standard of living to have decreased accordingly.
B)  increased between 1998 and 2008, so we would expect the standard of living to have increased accordingly.
C)  decreased between 1998 and 2008, so we would expect inflation to have decreased accordingly.
D)  increased between 1998 and 2008, so we would expect inflation to have increased accordingly.E) All of the above
F) A) and B)

Question 16

Market power refers to the

Accepted Answer

A)  power of a single person or small group to influence market prices.
B)  ability of a person or small group to successfully market new products.
C)  power of the government to regulate a market.
D)  importance of a certain market in relation to the overall economy.E) B) and D)
F) All of the above

Question 17

In a particular country in 2000, the average worker needed to work 40 hours to produce 55 units of output. In that same country in 2008, the average worker needed to work 30 hours to produce 45 units of output. In that country, the productivity of the average worker

Accepted Answer

A)  decreased by about 6 percent between 2000 and 2008.
B)  remained unchanged between 2000 and 2008.
C)  increased by about 9 percent between 2000 and 2008.
D)  increased by about 18 percent between 2000 and 2008.E) None of the above
F) C) and D)

Question 18

Suppose your management professor has been offered a corporate job with a 30 percent pay increase. He has decided to take the job. For him, the marginal

Accepted Answer

A)  cost of leaving was greater than the marginal benefit.
B)  benefit of leaving was greater than the marginal cost.
C)  benefit of teaching was greater than the marginal cost.
D)  All of the above are correct.E) A) and B)
F) B) and D)

Question 19

Suppose the Federal Reserve announces that it will be making a change to a key interest rate to increase the money supply. This is likely because

Accepted Answer

A)  the Federal Reserve is worried about inflation.
B)  the Federal Reserve is worried about unemployment.
C)  the Federal Reserve is hoping to reduce the demand for goods and services.
D)  the Federal Reserve is worried that the economy is growing too quickly.E) None of the above
F) A) and B)

Question 20

Both The Wealth of Nations and the Declaration of Independence share the point of view that

Accepted Answer

A)  every person is entitled to life, liberty, and the pursuit of happiness.
B)  individuals are best left to their own devices without the government guiding their actions.
C)  the government plays a central role in organizing a market economy.
D)  because of human nature a strong legal system is necessary for a market system to survive.E) A) and C)
F) A) and B)

Exam 1: Ten Principles of Economics

In a particular country in 2000, the average worker needed to work 40 hours to produce 55 units of output. In that same country in 2008, the average worker needed to work 30 hours to produce 45 units of output. In that country, the productivity of the average worker

Correct Answer
verified

Market power refers to the

Correct Answer
verified

It costs a meat-processing company $50,000 to produce 5,000 pounds of steak. The company's cost will be $50,009 if it produces an additional pound of steak. If the company produces 5,001 pounds of steak then

Correct Answer
verified

Both The Wealth of Nations and the Declaration of Independence share the point of view that

Correct Answer
verified

The income of a typical worker in a country is most closely linked to which of the following?

Correct Answer
verified

Which of the following is an example of something economists study?

Correct Answer
verified

Melinda quits her job at a bank, which pays $30,000 a year, to enroll in a two-year graduate program. Her annual school expenses are $22,000 for tuition and fees and $2,000 for books. What is her opportunity cost of attending the two-year graduate program?

Correct Answer
verified

When a single person (or small group) has the ability to influence market prices, there is

Correct Answer
verified

When the government redistributes income from the wealthy to the poor,

Correct Answer
verified

One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources.

Correct Answer
verified

A tradeoff exists between a clean environment and a higher level of income in that

Correct Answer
verified

Which of the following is not subject to scarcity?

Correct Answer
verified

Suppose your management professor has been offered a corporate job with a 30 percent pay increase. He has decided to take the job. For him, the marginal

Correct Answer
verified

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

If the United States decides to trade with Yemen, we know that

Correct Answer
verified

In a particular country in 1998, the average worker needed to work 40 hours to produce 100 units of output. In that same country in 2008, the average worker needed to work 36 hours to produce 72 units of output. In that country, the productivity of the average worker

Correct Answer
verified

Suppose the Federal Reserve announces that it will be making a change to a key interest rate to increase the money supply. This is likely because

Correct Answer
verified

Resources are

Correct Answer
verified

Correct Answer
verified
$16.75 and...
View Answer

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

Correct Answer
verified

Exam 1: Ten Principles of Economics

In a particular country in 2000, the average worker needed to work 40 hours to produce 55 units of output. In that same country in 2008, the average worker needed to work 30 hours to produce 45 units of output. In that country, the productivity of the average worker

Correct AnswerverifiedShow Answer

Market power refers to the

Correct AnswerverifiedShow Answer

It costs a meat-processing company $50,000 to produce 5,000 pounds of steak. The company's cost will be $50,009 if it produces an additional pound of steak. If the company produces 5,001 pounds of steak then

Correct AnswerverifiedShow Answer

Both The Wealth of Nations and the Declaration of Independence share the point of view that

Correct AnswerverifiedShow Answer

The income of a typical worker in a country is most closely linked to which of the following?

Correct AnswerverifiedShow Answer

Which of the following is an example of something economists study?

Correct AnswerverifiedShow Answer

Melinda quits her job at a bank, which pays $30,000 a year, to enroll in a two-year graduate program. Her annual school expenses are $22,000 for tuition and fees and $2,000 for books. What is her opportunity cost of attending the two-year graduate program?

Correct AnswerverifiedShow Answer

When a single person (or small group) has the ability to influence market prices, there is

Correct AnswerverifiedShow Answer

When the government redistributes income from the wealthy to the poor,

Correct AnswerverifiedShow Answer

One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources.

Correct AnswerverifiedShow Answer

A tradeoff exists between a clean environment and a higher level of income in that

Correct AnswerverifiedShow Answer

Which of the following is not subject to scarcity?​

Correct AnswerverifiedShow Answer

Suppose your management professor has been offered a corporate job with a 30 percent pay increase. He has decided to take the job. For him, the marginal

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe enjoyment you wo...View AnswerShow Answer

If the United States decides to trade with Yemen, we know that

Correct AnswerverifiedShow Answer

In a particular country in 1998, the average worker needed to work 40 hours to produce 100 units of output. In that same country in 2008, the average worker needed to work 36 hours to produce 72 units of output. In that country, the productivity of the average worker

Correct AnswerverifiedShow Answer

Suppose the Federal Reserve announces that it will be making a change to a key interest rate to increase the money supply. This is likely because

Correct AnswerverifiedShow Answer

Resources are

Correct AnswerverifiedShow Answer

Correct Answerverified$16.75 and...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Which of the following is not subject to scarcity?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$16.75 and...
View Answer

Correct Answer
verified