ECON 1580 - All Self Quizzes PDF

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Self Quiz 1 Question 1 Correct Mark 1.00 out of 1.00

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According to the textbook, economics is a: Select one: a. social science.

b. study of business decisions, not social decisions. c. part of operations and management science. d. part of humanities. Feedback The correct answer is: social science.

Question 2 Correct Mark 1.00 out of 1.00

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A/an _______ does not pose the problem of scarcity; one use of the good is not an alternative to another use. Select one: a. free good

b. scarce good c. economic good d. monetary good Feedback The correct answer is: free good

Question 3 Correct Mark 1.00 out of 1.00

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Water is considered a scarce good rather than a free good because: Select one:

a. it has alternative uses.

b. it does not have alternative uses. c. scarce goods are less expensive than free goods. d. free goods are more expensive than scarce goods. Feedback The correct answer is: it has alternative uses.

Question 4 Correct Mark 1.00 out of 1.00

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The Case in Point on the oil extraction suggests that one reason oil may become more costly is that: Select one: a. we will have to give up more and more valuable alternatives to extract oil.

b. speculation is likely to drive up oil prices. c. oil producers are likely to become more greedy in the future. d. actually, the Case suggests that oil extraction is likely to become less costly and the future. Feedback The correct answer is: we will have to give up more and more valuable alternatives to extract oil.

Question 5 Correct Mark 1.00 out of 1.00

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The opportunity cost of something is: Select one: a. greater during periods of rising prices. b. equal to the money cost. c. less during periods of falling prices. d. what is given up to acquire it.

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The correct answer is: what is given up to acquire it.

Question 6 Correct Mark 1.00 out of 1.00

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The BEST example of making a choice at the margin is: Select one: a. buying a new car. b. quitting your job. c. a coffee drinker drinking another cup of coffee.

d. attending college. Feedback The correct answer is: a coffee drinker drinking another cup of coffee.

Question 7 Incorrect Mark 0.00 out of 1.00

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The study of a single firm and how it determines prices would fall under: Select one: a. macroeconomics.

b. microeconomics. c. the study of inflation. d. normative economics. Feedback The correct answer is: microeconomics.

Question 8 Correct Mark 1.00 out of 1.00

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Each of the following statements about the use of models in the study of economics is true EXCEPT: Select one:

a. models fit the observed facts exactly.

b. models are sometimes revised in light of new research findings. c. models are easier to manipulate than the reality they represent. d. models contain the essential features of the economic behavior being studied. Feedback The correct answer is: models fit the observed facts exactly.

Question 9 Correct Mark 1.00 out of 1.00

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Suppose you observe that the sun sets every evening after the six o'clock business report. If you conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of: Select one: a. division. b. composition. c. false cause.

d. science. Feedback The correct answer is: false cause.

Question 10 Correct Mark 1.00 out of 1.00

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An example of a normative statement is: Select one: a. The rate of unemployment is 4 percent. b. A high rate of economic growth creates more jobs for the country. c. The federal government spends half of its budget on national defense. d. Everyone in the country needs to be covered by national health insurance.

Feedback The correct answer is: Everyone in the country needs to be covered by national health insurance.

Question 1 Correct Mark 1.00 out of 1.00

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Resources from nature that can be used to to produce other goods and services are called: Select one: a. money. b. natural resources.

c. labor. d. capital. Feedback The correct answer is: natural resources.

Question 2 Correct Mark 1.00 out of 1.00

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Increasing the level of education in the United States will: Select one: a. shift the production possibilities curve to the left. b. improve the level of technology. c. lead to increased natural resource use. d. lead to workers possessing greater human capital.

Feedback The correct answer is: lead to workers possessing greater human capital.

Question 3 Correct Mark 1.00 out of 1.00

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Technology is: Select one:

a. knowledge that can be applied to the production of goods and services.

b. generally unlimited in modern economies. c. a graphical illustration of the alternative combinations of goods and services an economy can produce. d. the resources the economy has available to produce goods and services. Feedback The correct answer is: knowledge that can be applied to the production of goods and services.

Question 4 Correct Mark 1.00 out of 1.00

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A person who seeks to earn profits by finding ways to organize factors of production is called a/an: Select one: a. foreman b. finance capitalist. c. entrepreneur.

d. manager. Feedback The correct answer is: entrepreneur.

Question 5 Correct Mark 1.00 out of 1.00

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In this exhibit (Guns and Butter), the combination of guns and butter at point H: Select one: a. can be obtained, but would cost too much. b. cannot be attained given the level of technology and the factors of production available.

c. has no meaning since it does not relate to the preferences of consumers. d. Is attainable but would increase unemployment. Feedback The correct answer is: cannot be attained given the level of technology and the factors of production available.

Question 6 Correct Mark 1.00 out of 1.00

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If the production possibilities curve were a straight line sloping down from left to right, this would suggest that: Select one: a. more of both goods could be produced moving along the curve. b. the two products must have the same price.

c. no factor of production has any particular comparative advantage over other resources.

d. the utility of the two goods must be equal to consumers. Feedback The correct answer is: no factor of production has any particular comparative advantage over other resources.

Question 7 Correct Mark 1.00 out of 1.00

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When moving along a production possibilities curve, the opportunity cost to society of getting more of the good on the horizontal axis: Select one: a. is constant. b. is measured in dollar terms. c. is measured by the amount of the other good that must be given up.

d. usually decreases. Feedback The correct answer is: is measured by the amount of the other good that must be given up.

Question 8 Correct Mark 1.00 out of 1.00

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Efficient production implies that it is: Select one: a. possible to produce more of all goods and services. b. it is possible to produce more of one good without producing less of another. c. not possible to produce more of one good without producing less of another good.

d. producing at a combination of goods which lies between the production possibilities curve and the origin. Feedback

The correct answer is: not possible to produce more of one good without producing less of another good.

Question 9 Correct Mark 1.00 out of 1.00

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In market capitalism: Select one: a. factors of production are privately owned and decisions are made privately.

b. factors of production are owned by the government but decisions are made privately. c. there is no role for government. d. the consumer has few choices to make. Feedback The correct answer is: factors of production are privately owned and decisions are made privately.

Question 10 Correct Mark 1.00 out of 1.00

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Government's role of taxing some citizens and transferring income to others is considered: Select one: a. enforcing a legal system. b. providing certain goods and services. c. redistributing income.

d. maintaining the money supply. Feedback The correct answer is: redistributing income.

Self Quiz 2 Question 1 Correct Mark 1.00 out of 1.00

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The law of demand implies that: Select one: a. consumers are not responsive to price changes. b. consumers will, all other things unchanged, buy more at lower prices.

c. sellers will, all other things unchanged, offer more on the market at higher prices. d. sellers will, all other things unchanged, offer less on the market at lower prices. Feedback The correct answer is: consumers will, all other things unchanged, buy more at lower prices.

Question 2 Correct Mark 1.00 out of 1.00

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A decrease in the price of eggs, all other things unchanged, will result in a/an: Select one: a. increase in the demand for eggs. b. increase in the supply of eggs. c. greater quantity of eggs supplied. d. greater quantity of eggs demanded.

Feedback The correct answer is: greater quantity of eggs demanded.

Question 3 Incorrect Mark 0.00 out of 1.00

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The price of oranges falls. What happens in the market for apples, which are a substitute for oranges? Select one: a. The equilibrium price falls and the equilibrium quantity rises. b. The equilibrium price rises and the equilibrium quantity falls.

c. The equilibrium price and quantity rise.

d. The equilibrium price and quantity fall. Feedback The correct answer is: The equilibrium price and quantity fall.

Question 4 Correct Mark 1.00 out of 1.00

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After graduation from college you will receive a substantial increase in your income from a new job. If you decide that you will purchase more T-bone steak and less hamburger, then for you hamburger would be considered a/an: Select one: a. normal good. b. substitute good. c. complementary good. d. inferior good.

Feedback The correct answer is: inferior good.

Question 5 Correct Mark 1.00 out of 1.00

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The primary difference between a change in supply and a change in the quantity supplied is: Select one: a. a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve. b. both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. c. a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve.

d. a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve. Feedback The correct answer is: a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve.

Question 6 Correct Mark 1.00 out of 1.00

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If the price of a commodity increases as the result of increased demand, you would expect the: Select one: a. supply to increase. b. quantity supplied to increase.

c. quantity supplied to decrease. d. supply curve to shift to the right. Feedback The correct answer is: quantity supplied to increase.

Question 7 Correct Mark 1.00 out of 1.00

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In this exhibit (demand and supply curves), the highest price per unit that buyers would be willing to pay for 250 units is: Select one: a. $0. b. $5. c. $10.

d. $15. Feedback The correct answer is: $10.

Question 8 Incorrect Mark 0.00 out of 1.00

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In this exhibit (demand and supply curves), a price of $25 per unit will result in: Select one: a. a surplus of 50 units. b. a surplus of 200 units. c. a surplus of 250 units.

d. quantity demanded exceeding quantity supplied. Feedback The correct answer is: a surplus of 200 units.

Question 9 Correct Mark 1.00 out of 1.00

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If the price in the market for a commodity is above the market equilibrium price, the: Select one: a. price will remain unchanged. b. price will rise to clear the market. c. quantity supplied exceeds the quantity demanded.

d. quantity demanded exceeds the quantity supplied. Feedback The correct answer is: quantity supplied exceeds the quantity demanded.

Question 10 Correct Mark 1.00 out of 1.00

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A market shortage occurs if the: Select one: a. price is above the equilibrium price. b. price is equal to the equilibrium price. c. equilibrium price is above the market price.

d. equilibrium price is below the market price. Feedback The correct answer is: equilibrium price is above the market price.

Question 1 Correct Mark 1.00 out of 1.00

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If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded does not change, this indicates that, if other things are unchanged, the price elasticity of demand is: Select one: a. 0.

b. -0.5. c. -1. d. -2. Feedback The correct answer is: 0.

Question 2 Correct Mark 1.00 out of 1.00

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If the price elasticity of demand is found to be -3/4, then demand is: Select one: a. price inelastic.

b. price elastic. c. unit price elastic. d. positively sloped. Feedback The correct answer is: price inelastic.

Question 3 Correct Mark 1.00 out of 1.00

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If total revenue goes down when price falls, the price elasticity of demand is said to be: Select one: a. price inelastic.

b. unit price elastic. c. price elastic.

d. positive. Feedback The correct answer is: price inelastic.

Question 4 Correct Mark 1.00 out of 1.00

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The demand for agricultural output is price inelastic. This means that if farmers, taken collectively, have a bumper crop, they will experience: Select one: a. lower prices, greater quantities sold, and lower incomes.

b. higher prices, greater quantities sold, and higher incomes. c. lower prices, quantities sold, and incomes. d. higher prices, quantities sold, and incomes. Feedback The correct answer is: lower prices, greater quantities sold, and lower incomes.

Question 5 Correct Mark 1.00 out of 1.00

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In this exhibit (Demand for Bungalow Bob's Bagels) total revenue remains unchanged if the price ________ from ________. Select one: a. decreases; $0.50 to $0.40 b. decreases; $0.60 to $0.50

c. decreases; $0.70 to $0.60 d. increases; $0.60 to $0.70 Feedback

The correct answer is: decreases; $0.60 to $0.50

Question 6 Correct Mark 1.00 out of 1.00

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In this exhibit (Demand for Shirts) the price elasticity of demand for the segment CD is: Select one: a. greater than 1 (absolute value).

b. -1. c. -0.71. d. -0.29. Feedback The correct answer is: greater than 1 (absolute value).

Question 7 Correct Mark 1.00 out of 1.00

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A demand curve that is perfectly inelastic: Select one:

a. will be vertical.

b. will be horizontal. c. will be upward sloping. d. has an elasticity equal to 1 everywhere on the curve. Feedback The correct answer is: will be vertical.

Question 8 Correct Mark 1.00 out of 1.00

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If the price of chocolate-covered peanuts increases and the demand for strawberries does not change, this indicates that these two goods are: Select one: a. unrelated goods.

b. inferior goods. c. substitute goods. d. complementary goods. Feedback The correct answer is: unrelated goods.

Question 9 Correct Mark 1.00 out of 1.00

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The cross price elasticity of demand for Coke with respect to the price of Pepsi has been estimated to be 0.61. If the price of Pepsi falls by 10 percent in a period, how will that affect the demand for Coke in that period, all other things unchanged? Select one: a. The demand for Coke will increase but by less than 6.1 percent. b. The demand for Coke will increase by 6.1 percent. c. The demand for Coke will not change because many people prefer Coke over Pepsi. d. The demand for Coke will fall.

Feedback The correct answer is: The demand for Coke will fall.

Question 10 Correct Mark 1.00 out of 1.00

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Although in most cases the price elasticity of labor supply is ________ , for some individuals it may be ________ . Select one: a. negative; zero b. negative; positive c. positive; negative

d. zero; negative Feedback The correct answer is: positive; negative

Self Quiz 3 Question 1 Correct Mark 1.00 out of 1.00

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Which of the following statements is false? Select one: a. The income effect of normal goods counters the substitution effect so the demand curve is upsloping.

b. The income effect and the substitution effect reinforce each other when there are price changes for a normal good. c. The income effect represents the decrease in quantity demanded caused by the implicit change in income due to a fall in the price of an inferior good but not for a normal good. d. The substitution effect represents the change in quantity demanded solely due to a change in the relative price of a good. Feedback The correct answer is: The income effect of normal goods counters the substitution effect so the demand curve is upsloping.

Question 2 Correct Mark 1.00 out of 1.00

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For a/an _______ good, an increase in income will lead to an increase in _______ . Select one: a. inferior; consumption b. normal; supply c. normal; consumption

d. inferior; supply Feedback The correct answer is: normal; consumption

Question 3 Correct Mark 1.00 out of 1.00

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Assume that the total utilities for the fifth and sixth units of a good consumed are 83 and 97, respectively. The marginal utility for the sixth unit is: Select one: a. -14. b. 14.

c. 83. d. 97. Feedback The correct answer is: 14.

Question 4 Correct Mark 1.00 out of 1.00

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In this exhibit (Consumer Equilibrium 1), assume that the price of good X is $2 per unit and the price of good Y is $1 per unit, and you consume 3 units of good X and 3 units of good Y. To maximize utility, assuming that the goods are divisible, you would consume: Select one: a. less of both X and Y. b. more of both X and Y. c. less of X and more of Y.

d. more of X and less of Y. Feedback The correct answer is: less of X and more of Y.

Question 5 Correct Mark 1.00 out of 1.00

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If the price of apples falls and the price of oranges remains constant: Select one: a. apple...