Question 1

The term ______ refers to a small incremental adjustment to an existing plan of action.

Accepted Answer

The answer of The term ______ refers to a small...

Question 2

For a very long time the country of Tofu has had an inflation rate of 8 percent. Suddenly its inflation rate drops to 3 percent. The drop in the inflation rate

Accepted Answer

A)  could be due to slower money supply growth.We would expect unemployment to be higher.
B)  could be due to slower money supply growth.We would expect unemployment to be lower.
C)  could be due to higher money supply growth.We would expect unemployment to be higher.
D)  could be due to higher money supply growth.We would expect unemployment to be lower.E) B) and D)
F) None of the above

Question 3

The slow growth of U.S. incomes during the 1970s and 1980s can best be explained by

Accepted Answer

A)  unstable economic conditions in Eastern Europe.
B)  increased competition from abroad.
C)  a decline in the rate of increase in U.S.productivity.
D)  a strong U.S.dollar abroad, hurting U.S.exports.E) None of the above
F) A) and B)

Question 4

Which of the following is not an example of a group responding to an incentive?

Accepted Answer

A)  Students attend class because of an attendance policy that reduces their grade for absences.
B)  Consumers buy more of a product when it is on sale at a reduced price.
C)  Universities offer fewer online classes when they generate more revenue at the same cost than traditional classes.
D)  Employees work harder to earn higher commissions.E) A) and C)
F) A) and B)

Question 5

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) A) and B)
F) B) and C)

Question 6

Equality means distributing society's resources in the most efficient manner.

Accepted Answer

A) True 
 B)False

Question 7

After much consideration, you have chosen Ireland over Spain for your Study Abroad program next year. However, the deadline for your final decision is still months away and you may reverse this decision. Which of the following events could prompt you to reverse this decision?

Accepted Answer

A)  The marginal benefit of going to Spain increases.
B)  The marginal cost of going to Spain increases.
C)  The marginal benefit of going to Ireland increases.
D)  The marginal cost of going to Ireland decreases.E) B) and D)
F) B) and C)

Question 8

The business cycle is the

Accepted Answer

A)  relationship between unemployment and inflation.
B)  irregular fluctuations in economic activity.
C)  positive relationship between the quantity of money in an economy and inflation.
D)  predictable changes in economic activity due to changes in government spending and taxes.E) A) and B)
F) All of the above

Question 9

Suppose that in Germany total annual output is worth $600 million and people work 40 million hours. In France total annual output is worth $700 million and people work 50 million hours. In which country do people enjoy a higher standard of living?

Accepted Answer

In Germany. Almost all variati...

Question 10

Which of the following is an important cause of inflation in an economy?

Accepted Answer

A)  Increases in productivity in the economy
B)  The influence of positive externalities on the economy
C)  Lack of property rights in the economy
D)  Growth in the quantity of money in the economyE) A) and C)
F) None of the above

Question 11

In the short run, an increase in the money supply is likely to lead to ______ inflation and ______ unemployment.

Accepted Answer

The answer of In the short run, an increase in...

Question 12

Inflation and unemployment both increase as the money supply increases.

Accepted Answer

A) True 
 B)False

Question 13

Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires.

Accepted Answer

A) True 
 B)False

Question 14

Scenario 1-1
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 $8.00 on a ticket and $4.50 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 10 points.
-Refer to Scenario 1-1. What is your opportunity cost of studying economics?

Accepted Answer

The enjoyment you wo...

Question 15

Chloe's college raises the cost of room and board per semester. This increase raises Chloe's opportunity cost of attending college

Accepted Answer

A)  even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount.An increase in opportunity cost reduces Chloe's incentive to attend college.
B)  even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount.An increase in opportunity cost increases Chloe's incentive to attend college.
C)  only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges.An increase in opportunity cost reduces Chloe's incentive to attend college.
D)  only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges.An increase in opportunity cost increases Chloe's incentive to attend college.E) All of the above
F) C) and D)

Question 16

Suppose the cost of operating a 75-room hotel for a night is $6,000 and there are five empty rooms for tonight. If the marginal cost of operating one room for one night is $40, the hotel manager should rent one of the empty rooms only if a customer is willing to pay

Accepted Answer

A)  more than $40; because the average benefit will exceed the marginal cost.
B)  more than $40; because the marginal benefit will exceed the marginal cost.
C)  more than $80; because the average benefit will exceed the marginal cost.
D)  more than $80; because the marginal benefit will exceed the marginal cost.E) B) and C)
F) None of the above

Question 17

The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour.​

Accepted Answer

A) True 
 B)False

Question 18

In the long run the primary effect of increasing the quantity of money is higher prices.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The "invisible hands" ability to coordinate the decisions of the firms and households in the economy can be hindered by

Accepted Answer

A)  government actions that distort prices.
B)  increased competition in markets.
C)  enforcement of property rights.
D)  too much attention paid to efficiency.E) A) and D)
F) All of the above

Exam 1: Ten Principles of Economics

Inflation and unemployment both increase as the money supply increases.

Correct Answer
verified

The "invisible hands" ability to coordinate the decisions of the firms and households in the economy can be hindered by

Correct Answer
verified

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 Answer
verified

The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour.

Correct Answer
verified

Suppose that in Germany total annual output is worth $600 million and people work 40 million hours. In France total annual output is worth $700 million and people work 50 million hours. In which country do people enjoy a higher standard of living?

Correct Answer
verified
In Germany. Almost all variati...
View Answer

After much consideration, you have chosen Ireland over Spain for your Study Abroad program next year. However, the deadline for your final decision is still months away and you may reverse this decision. Which of the following events could prompt you to reverse this decision?

Correct Answer
verified

Which of the following is an important cause of inflation in an economy?

Correct Answer
verified

Chloe's college raises the cost of room and board per semester. This increase raises Chloe's opportunity cost of attending college

Correct Answer
verified

Which of the following is not an example of a group responding to an incentive?

Correct Answer
verified

The term ______ refers to a small incremental adjustment to an existing plan of action.

Correct Answer
verified

In the long run the primary effect of increasing the quantity of money is higher prices.

Correct Answer
verified

Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires.

Correct Answer
verified

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

In the short run, an increase in the money supply is likely to lead to inflation and unemployment.

Correct Answer
verified

The business cycle is the

Correct Answer
verified

The slow growth of U.S. incomes during the 1970s and 1980s can best be explained by

Correct Answer
verified

Suppose the cost of operating a 75-room hotel for a night is $6,000 and there are five empty rooms for tonight. If the marginal cost of operating one room for one night is $40, the hotel manager should rent one of the empty rooms only if a customer is willing to pay

Correct Answer
verified

For a very long time the country of Tofu has had an inflation rate of 8 percent. Suddenly its inflation rate drops to 3 percent. The drop in the inflation rate

Correct Answer
verified

Equality means distributing society's resources in the most efficient manner.

Correct Answer
verified

Trade between countries tends to

Correct Answer
verified

Exam 1: Ten Principles of Economics

Inflation and unemployment both increase as the money supply increases.

Correct AnswerverifiedShow Answer

The "invisible hands" ability to coordinate the decisions of the firms and households in the economy can be hindered by

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

The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour.​

Correct AnswerverifiedShow Answer

Suppose that in Germany total annual output is worth $600 million and people work 40 million hours. In France total annual output is worth $700 million and people work 50 million hours. In which country do people enjoy a higher standard of living?

Correct AnswerverifiedIn Germany. Almost all variati...View AnswerShow Answer

After much consideration, you have chosen Ireland over Spain for your Study Abroad program next year. However, the deadline for your final decision is still months away and you may reverse this decision. Which of the following events could prompt you to reverse this decision?

Correct AnswerverifiedShow Answer

Which of the following is an important cause of inflation in an economy?

Correct AnswerverifiedShow Answer

Chloe's college raises the cost of room and board per semester. This increase raises Chloe's opportunity cost of attending college

Correct AnswerverifiedShow Answer

Which of the following is not an example of a group responding to an incentive?

Correct AnswerverifiedShow Answer

The term ______ refers to a small incremental adjustment to an existing plan of action.

Correct AnswerverifiedShow Answer

In the long run the primary effect of increasing the quantity of money is higher prices.

Correct AnswerverifiedShow Answer

Because resources are scarce, a society cannot give all individuals the standard of living to which each aspires.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe enjoyment you wo...View AnswerShow Answer

In the short run, an increase in the money supply is likely to lead to ______ inflation and ______ unemployment.

Correct AnswerverifiedShow Answer

The business cycle is the

Correct AnswerverifiedShow Answer

The slow growth of U.S. incomes during the 1970s and 1980s can best be explained by

Correct AnswerverifiedShow Answer

Suppose the cost of operating a 75-room hotel for a night is $6,000 and there are five empty rooms for tonight. If the marginal cost of operating one room for one night is $40, the hotel manager should rent one of the empty rooms only if a customer is willing to pay

Correct AnswerverifiedShow Answer

For a very long time the country of Tofu has had an inflation rate of 8 percent. Suddenly its inflation rate drops to 3 percent. The drop in the inflation rate

Correct AnswerverifiedShow Answer

Equality means distributing society's resources in the most efficient manner.

Correct AnswerverifiedShow Answer

Trade between countries tends to

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

The opportunity cost of working out for one hour is the value of the next-best activity that you could have done in that hour.

Correct Answer
verified

Correct Answer
verified
In Germany. Almost all variati...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

In the short run, an increase in the money supply is likely to lead to inflation and unemployment.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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