Question 1

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.E) None of the above
F) A) and C)

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following can policy do?

Accepted Answer

A)  alter incentives
B)  alter trade-offs
C)  change opportunity costs
D)  All of the above are correct.E) All of the above
F) B) and C)

Question 4

Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor,

Accepted Answer

A)  only Dale is made better off by trade.
B)  only Terrence is made better off by trade.
C)  both Dale and Terrence are made better off by trade.
D)  neither Dale nor Terrence are made better off by trade.E) All of the above
F) A) and B)

Question 5

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 marginal cost?

Accepted Answer

The answer of Scenario 1-3
It costs a company $35,000 to...

Question 6

Which of the following rates of growth in the money supply is likely to lead to the highest level of inflation in the economy?

Accepted Answer

A)  1 percent per year
B)  2 percent per year
C)  3 percent per year
D)  4 percent per yearE) B) and D)
F) A) and C)

Question 7

Which of the following examples does not illustrate the principle represented by the adage, "There is no such thing as a free lunch"?

Accepted Answer

A)  Melissa needs to pay her rent and her electric bill.
B)  Kevin must choose between buying a new flat screen television and buying his textbooks for this semester.
C)  Robert must decide between studying for his psychology exam and working at his part-time job.
D)  Lisa can spend her money on a new smart phone or on a weekend trip.E) A) and B)
F) A) and C)

Question 8

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 company's marginal cost?

Accepted Answer

$70

Question 9

Trade between countries tends to

Accepted Answer

A)  reduce both competition and specialization.
B)  reduce competition and increase specialization.
C)  increase competition and reduce specialization.
D)  increase both competition and specialization.E) All of the above
F) A) and B)

Question 10

To say that government intervenes in the economy to promote efficiency is to say that government is attempting to

Accepted Answer

A)  create a more fair distribution of income.
B)  change the way in which the economic pie is divided.
C)  enlarge the economic pie.
D)  All of the above are correct.E) A) and B)
F) None of the above

Question 11

Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-year graduate program?

Accepted Answer

The answer of Zack quits his job at a consulting...

Question 12

What does the "invisible hand" refers to?

Accepted Answer

How the decisions of...

Question 13

Give an example of government intervention that is intended to improve equality.

Accepted Answer

The income...

Question 14

The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanooga. In advance of a particular trip, four seats remain unsold. The bus company could increase its profit only if it

Accepted Answer

A)  charged any ticket price above $0 for the four remaining seats.
B)  charged at least $11.25 for each of the four remaining seats.
C)  charged at least $45 for each of the four remaining seats.
D)  paid four people to occupy the four remaining seats.E) A) and D)
F) B) and C)

Question 15

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.E) B) and C)
F) B) and D)

Question 16

Economics is the study of ______ .

Accepted Answer

how societ...

Question 17

A company that formerly produced music CDs went out of business because too many potential customers bought illegally-produced copies of the CDs instead of buying the product directly from the company. This instance serves as an example of

Accepted Answer

A)  market power.
B)  inefficient trade.
C)  inadequate enforcement of property rights.
D)  the invisible hand at work.E) A) and B)
F) None of the above

Question 18

If the government were to intervene and set the price of a dozen eggs above the market price, then we would expect, relative to the market outcome,

Accepted Answer

A)  an increase in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell.
B)  an increase in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell.
C)  a decrease in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell.
D)  a decrease in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell.E) B) and C)
F) A) and D)

Question 19

In a market economy, who makes the decisions that guide most economic activity?

Accepted Answer

A)  firms only
B)  households only
C)  firms and households
D)  governmentE) A) and B)
F) A) and C) C

Question 20

The balance between maximizing a society's income and an equal distribution of that income is an illustration of

Accepted Answer

A)  ​scarcity.
B)  ​trade-offs.
C)  ​the forces of supply and demand.
D)  ​none of the above.E) A) and B)
F) None of the above

Exam 1: Ten Principles of Economics

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

Which of the following can policy do?

Correct AnswerverifiedShow Answer

Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor,

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 marginal cost?

Correct AnswerverifiedShow Answer

Which of the following rates of growth in the money supply is likely to lead to the highest level of inflation in the economy?

Correct AnswerverifiedShow Answer

Which of the following examples does not illustrate the principle represented by the adage, "There is no such thing as a free lunch"?

Correct AnswerverifiedShow Answer

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 company's marginal cost?

Correct Answerverified$70

Trade between countries tends to

Correct AnswerverifiedShow Answer

To say that government intervenes in the economy to promote efficiency is to say that government is attempting to

Correct AnswerverifiedShow Answer

Zack quits his job at a consulting firm, which pays $40,000 a year, to enroll in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-year graduate program?

Correct AnswerverifiedShow Answer

What does the "invisible hand" refers to?

Correct AnswerverifiedHow the decisions of...View AnswerShow Answer

Give an example of government intervention that is intended to improve equality.

Correct AnswerverifiedThe income...View AnswerShow Answer

The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanooga. In advance of a particular trip, four seats remain unsold. The bus company could increase its profit only if it

Correct AnswerverifiedShow Answer

Which of the following statements about markets is most accurate?

Correct AnswerverifiedShow Answer

Economics is the study of ______ .

Correct Answerverifiedhow societ...View AnswerShow Answer

A company that formerly produced music CDs went out of business because too many potential customers bought illegally-produced copies of the CDs instead of buying the product directly from the company. This instance serves as an example of

Correct AnswerverifiedShow Answer

If the government were to intervene and set the price of a dozen eggs above the market price, then we would expect, relative to the market outcome,

Correct AnswerverifiedShow Answer

In a market economy, who makes the decisions that guide most economic activity?

Correct AnswerverifiedC

The balance between maximizing a society's income and an equal distribution of that income is an illustration of

Correct AnswerverifiedShow Answer

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False

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$70

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How the decisions of...
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The income...
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how societ...
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C

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