WE WRITE CUSTOM ACADEMIC PAPERS

100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

MULTIPLE CHOICE. Choose the one alternative that best… Sho

MULTIPLE CHOICE. Choose the one alternative that best… Show more Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economics is the study of: 1) A) how society uses limited resources. B) the role of money in markets. C) how to invest in the stock market. D) how government officials decide which goods and services are produced. 2) Scarcity can best be defined as a situation in which: 2) A) there is more than enough money to satisfy consumers wants. B) there are no buyers willing to purchase what sellers have produced. C) resources are limited in quantity and can be used in different ways. D) there are not enough goods to satisfy all of the buyers demands. 3) Which of the following is not a factor of production? 3) A) physical capital B) money C) labor D) human capital 4) The effort used to coordinate the factors of production and produce goods and services is called: 4) A) capital accumulation. B) land. C) land ownership. D) entrepreneurship. 5) Which of the following is an example of scarcity? 5) A) If a city uses an acre of land to build a park there will be less land for houses. B) If you choose to play video games you will not have as much time for exercise. C) If I decide to buy a new car I may not have enough money to go away on vacation this year. D) All of the above are examples of scarcity. 6) Markets perform all of the following functions except: 6) A) determining the prices of goods and services. B) helping firms decide how to produce. C) helping firms decide what to produce. D) determining why a firm chooses to produce a certain product. 7) Which of the following is not an economic decision in a modern economy? 7) A) Who consumes the products produced? B) How will we produce it? C) Where will the products produced be consumed? D) What will be produced? 8) According to the text, economists identify that the reason why traffic congestions exists and waste large amounts of resources in the economy is because: 8) A) the drivers are mindful of the additional time they impose on other drivers if they enter a highway. B) the drivers are NOT mindful of the additional time they impose on other drivers if they enter a highway. C) the cars are too big. D) the roads are too small. 1 9) The worldwide recession in 2007 started from: 9) A) booming housing prices that ultimately dropped. B) easy access to credit in the U.S. C) a large number of home purchasers who were unable to afford the homes. D) All of the above are correct. 10) Which of the following is not an example of a marginal question? 10) A) How many more dollars will I earn in my lifetime if I get my Master’s degree? B) How many more years of education must I take if I want to get a Ph.D. in economics? C) How many more points will I expect to have if I study an hour longer? D) How many students borrow money in order to attend college? 11) Which of the following is a topic not directly under macroeconomics? 11) A) recessions B) why the price of crude oil is high C) inflation D) All of the above are topics in macroeconomics. 12) Allocating more hours toward studying for your economics exam gives you a higher grade. Based on this observation, hours and your economics grade exhibit: 12) A) no relationship. B) a negative relationship. C) a positive relationship. D) an unpredictable relationship. 13) If a variable is 100 and then increases to 150, then using the initial value approach its percentage growth is: 13) A) 40 percent. B) 15 percent. C) 50 percent. D) -50 percent. Figure 1.1 14) Refer to Figure 1.1. Slope of the relationship or the wage rate shown in Figure 1.1 is: 14) A) $13.33 per hour. B) $5.15 per hour. C) $10 per hour. D) $15 per hour. 15) The principle that states that the cost of something is equal to what is sacrificed to get it is known as the: 15) A) marginal principle. B) reality principle. C) principle of diminishing returns. D) principle of opportunity cost. 2 Figure 2.2 16) Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The opportunity cost of the third new highway built in a year is: 16) A) 90,000 people provided with medical care. B) 10,000 people provided with medical care. C) 50,000 people provided with medical care. D) 450,000 people provided with medical care. 17) Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The reason why the production possibilities curve is shaped as it is (bowed outward) is because inputs for healthcare and highways are: 17) A) not substitutable at all. B) perfectly substitutable. C) used in precisely the same ratios. D) substitutable, but not perfectly substitutable. 18) Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The figure shows that as more highways are built, the opportunity cost of building each additional highway is: 18) A) decreasing. B) constant. C) decreasing and then increasing. D) increasing. 3 19) If the government estimates that the marginal cost of building a bridge is $100 million, while the marginal benefit is $150 million, the marginal principle dictates that the government should: 19) A) wait until the marginal benefit of building the bridge drops to below $100 million before building the bridge. B) wait until the marginal cost of building the bridge rises to above $150 million before building the bridge. C) never build the bridge. D) build the bridge. 20) When two people engage in voluntary trade: 20) A) both will necessarily lose. B) both will expect to be made better off. C) one will necessarily lose. D) each will expect to lose. 21) The principle of diminishing returns implies that when one input increases while the other inputs are held fixed, output: beyond some point will exhibit: 21) A) increases at a decreasing rate. B) decreases at an increasing rate. C) decreases at a decreasing rate. D) increases at an increasing rate. 22) The principle that what matters to people is the real value or purchasing power of money is the: 22) A) spillover principle. B) marginal principle. C) real-nominal principle. D) principle of diminishing returns. 23) The face value of money or income is called its ________ value. 23) A) real B) external C) nominal D) marginal 24) The value of money or income in terms of the quantity of goods the money can buy is called its: 24) A) nominal value. B) marginal value. C) implicit value. D) real value. 25) Markets exist: 25) A) because people are not self-sufficient. B) as an arrangement that allows buyers and sellers to exchange things. C) because people specialize in the production of one or two products. D) all of the above. 26) A centrally planned economy has a planning authority that decides: 26) A) who receives the products. B) how the products are produced. C) what products to produce. D) all of the above. 27) One of the most obvious clues to the relative scarcity of a product in a market economy is: 27) A) its current market price. B) the variations in available sizes. C) the limited selection of colors. D) none of the above. 28) A change in the quantity demanded of a product is the result of a change in: 28) A) consumer income. B) the price of related goods. C) the price of the product. D) the cost of producing the product. 4 29) The law of demand can be defined as: 29) A) people are willing to make limited sacrifices to acquire products. B) a lot of people wanting the same thing. C) the higher the price, the smaller the quantity demanded, ceteris paribus. D) none of the above. Figure 4.1 30) Refer to Figure 4.1 that shows Mary and Tom’s individual demand curves for meals per week at Fratelli’s Italian Restaurant. Assuming Mary and Tom are the only consumers in the market, what is the market quantity demanded at a price of $15? 30) A) 3 B) 9 C) 2 D) 1 31) The market demand curve is: 31) A) negatively sloped. B) always horizontal. C) always vertical D) upward sloping. 32) A table that shows the price of a product and the quantity of that product that a seller is willing to sell is called the: 32) A) supply curve. B) supply schedule. C) demand schedule. D) demand curve. 33) When a supply curve is drawn, which of the following is not held constant? 33) A) prices of inputs B) the price of the good C) the state of production technology D) taxes and subsidies 34) A minimum supply price is defined as: 34) A) the lowest price at which a product is bought. B) the lowest price at which a product is made available for sale. C) the lowest price at which other sellers also want to sell the good. D) the lowest cost to produce a good. 5 35) At a price of $1000, Dell Computer Co. is willing to sell 20 laptops and Compaq is willing to sell 40 laptops. IBM will only sell laptops if the price is $1300 or higher. From the point of view of IBM, $1300 is the: 35) A) minimum loss price. B) minimum cost. C) minimum supply price. D) the equilibrium price. 36) Suppose that the current price in a market for Pizza is $9. At that price, the quantity demanded is 519 and the quantity supplied is 400. At the current price, the market is experiencing: 36) A) an excess supply of $119. B) an equilibrium. C) an excess demand of 500 pizzas. D) an excess demand of 119 pizzas. Figure 4.2 37) In Figure 4.2, which of the panels depicts a market in which there is an excess supply of a product? 37) A) Panel A B) Panel B C) Panel C D) None of the panels depicts a market in which there is an excess supply of a product. 6 Figure 4.3 38) Figure 4.3 illustrates the supply and demand for blue jeans. If the actual price of blue jeans is $30, there is: 38) A) excess demand of 40 pairs of blue jeans. B) excess supply of 50 pairs of blue jeans. C) excess demand of 50 pairs of blue jeans. D) excess supply of 40 pairs of blue jeans. 39) Judy demands more peanuts as her income increases. From this, we can conclude that, for Judy: 39) A) peanuts are a normal good. B) peanuts are an inferior good. C) peanuts are a substitute good. D) peanuts are a complementary good. 40) When Tom’s income decreases, he purchases more hamburgers. We can conclude that for Tom, hamburger is a(n) ________ good. 40) A) inferior B) substitute C) normal D) complementary 41) Which of the following are most likely to be considered substitutes to pizzas? 41) A) hamburgers B) cheese C) soda D) pepperoni 42) As consumers prefer smaller and more fuel-efficient cars, the: 42) A) demand for SUVs will increase. B) demand for SUVs will decrease. C) quantity demanded for SUVs will rise. D) quantity demanded for SUVs will fall. 7 43) Assume that compact discs and compact disc players are complements. When the price of compact disc players decreases: 43) A) the demand for compact discs increases. B) the supply of compact discs increases. C) the demand for compact discs decreases. D) the supply of compact discs decreases. 44) Suppose that a product benefits from a successful advertising campaign. The result is that: 44) A) the supply of the product increases. B) the demand for the product increases. C) the supply of the product decreases. D) the demand for the product decreases. 45) Suppose that consumption of oat bran is found to reduce cholesterol and improve health. The result is that: 45) A) the supply of oat bran increases. B) the demand for oat bran decreases. C) the demand for oat bran increases. D) Both A and C are correct. 46) Suppose that consumers expect the price of a product to decrease in the future. The result is that: 46) A) the current demand for the product decreases. B) the current supply of the product decreases. C) the current supply of the product increases. D) the current demand for the product increases. 47) If the number of beer producers decreases: 47) A) the supply of beer decreases. B) the demand for beer decreases. C) the supply of beer increases. D) the demand for beer increases. 48) If a technological advance makes it possible to produce bananas at a lower cost: 48) A) the supply of bananas decreases. B) the demand for bananas increases. C) the supply of bananas increases. D) the demand for bananas decreases. 49) If the price of crude oil (an input to the production of gasoline) increases, then we will expect to see: 49) A) a movement along the supply curve for gasoline upwards. B) a movement along the supply curve for gasoline downwards. C) a shift in the supply of gasoline to the right. D) a shift in the supply of gasoline to the left. 50) A decrease in the amount of subsidies that a public university receives would result in: 50) A) an upward movement along the supply curve for college classes. B) an downward movement along the supply curve for college classes. C) a shift in the supply of college classes to the left. D) a shift in the supply of college classes to the right. 51) Bananas and apples are substitutes. When the price of bananas falls, the equilibrium quantity of apples will ________ and the equilibrium price of apples will ________. 51) A) rise; rise B) rise; fall C) fall; rise D) fall; fall 52) Suppose that ramen noodles are an inferior good. When income increases, the equilibrium quantity of ramen noodles will ________ and the equilibrium price of ramen noodles will ________. 52) A) rise; rise B) rise; fall C) fall; rise D) fall; fall 8 53) Suppose that the Surgeon General releases a study suggesting that orange juice consumption increases the risk for diabetes. As a result of the study, we could predict that the demand curve for orange juice will ________ and the equilibrium price will ________. 53) A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase 54) Suppose that a natural disaster substantially increases the cost of producing cheese. We would predict that the equilibrium quantity of cheese will ________ and the equilibrium price of cheese will ________. 54) A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease 55) Suppose that in 2006, 8 million cars were purchased at $15,000 each, while in 2007, 10 million cars were purchased at $12,000 each. What might have caused this change? 55) A) The price of airplane tickets (a substitute for cars) fell. B) There were fewer workers in automobile manufacturing. C) The price of airplane tickets (a substitute for cars) rose. D) There was an advance in automobile manufacturing technology. 56) A public good is a good that: 56) A) is rival. B) is free. C) is excludable. D) is available regardless of willingness to pay. 57) A private good is a good that: 57) A) cannot result in external benefits or costs to those who don’t consume. B) is available for everyone to consume, regardless of who pays. C) is consumed by a single person or household. D) cannot be used by private citizens. 58) An example of a private good is: 58) A) clean air. B) city streets and highways. C) a bottle of perfume. D) national defense. 59) If you watch a football game on a cable TV, the cable TV is: 59) A) a public good and nonexcludable. B) a private good and rival in consumption. C) a public good but excludable. D) a private good but nonrival in consumption. 60) When the government provides a public good by taxing citizens and using tax money to provide the good: 60) A) the result is efficient if the total value of the public good is greater than the cost of providing it. B) the result is efficient only if voters specifically agreed to provision of that good. C) the result is inefficient because the government is an inefficient provider of goods and services. D) the result is inefficient because if it were efficient the good would have been provided in a free market. 9 • Show less

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Subject:
Type:
Pages/Words:
Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Level:
Currency:
Total Cost: NaN

Get 10% Off on your 1st order!