Question 1

Use the following Scenario to answer the question 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 minimum price the company will charge for the 701th calculator?

Accepted Answer

The answer of Use the following Scenario to answer the...

Question 2

Economics is the study of how society manages its

Accepted Answer

A)   limited wants and unlimited resources.
B)   unlimited wants and unlimited resources.
C)   limited wants and limited resources.
D)   unlimited wants and limited resources.E) A) and C)
F) None of the above

Question 3

US citizens have better nutrition, better healthcare, and a longer life expectancy than citizens of Ghana. Which of the following conclusions can be drawn from this statement?

Accepted Answer

A)   Average income in the US is higher than the average income in Ghana.
B)   The US has a higher standard of living than Ghana.
C)   Productivity in the US is higher than productivity in Ghana.
D)   All of the above are correct.E) C) and D)
F) None of the above

Question 4

Which of the following firms is likely to have the greatest market power?

Accepted Answer

A)   an electric company
B)   a farmer
C)   a grocery store
D)   a local electronics retailerE) A) and D)
F) None of the above

Question 5

An increase in the marginal cost of an activity necessarily means that people will no longer engage in any of that activity.

Accepted Answer

A) True 
 B)False

Question 6

The basic principles of economics suggest that

Accepted Answer

A)   markets are seldom, if ever, a good way to organize economic activity.
B)   government should become involved in markets when trade between countries is involved.
C)   government should become involved in markets when those markets fail to produce efficient or fair outcomes.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 7

Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial

Accepted Answer

A)   only if it allows us to obtain things that we couldn't make for ourselves.
B)   because it allows specialization, which increases total output.
C)   to us if we can gain and the others involved in the trade lose.
D)   in only a limited number of circumstances because others are typically self-interested.E) A) and B)
F) B) and C)

Question 8

The term "market failure"

Accepted Answer

A)   means the same thing as "market power."
B)   refers to the dissolution of a market when firms decide to quit producing a certain product.
C)   refers to the failure of a market to produce an efficient allocation of resources.
D)   refers to government's failure to enforce the property rights of households or firms that participate in a certain market.E) None of the above
F) A) and B)

Question 9

Prices usually reflect

Accepted Answer

A)   only the value of a good to society.
B)   only the cost to society of making a good.
C)   both the value of a good to society and the cost to society of making the good.
D)   neither the value of a good to society nor the cost to society of making the good.E) B) and C)
F) A) and B)

Question 10

The classic tradeoff between "guns and butter" states that when a society spends more on national defense, it has less to spend on consumer goods to raise the standard of living.

Accepted Answer

A) True 
 B)False

Question 11

Ashley eats two bananas during a particular day. The marginal benefit she enjoys from eating the second banana

Accepted Answer

A)   can be thought of as the total benefit Ashley enjoys by eating two bananas minus the total benefit she would have enjoyed by eating just the first banana.
B)   determines Ashley's marginal cost of the first and second bananas.
C)   does not depend on how many bananas Ashley has already eaten.
D)   cannot be determined unless we know how much she paid for the bananas.E) A) and D)
F) A) and C)

Question 12

In economics, the cost of something is

Accepted Answer

A)   the dollar amount of obtaining it.
B)   always measured in units of time given up to get it.
C)   what you give up to get it.
D)   often impossible to quantify, even in principle.E) All of the above
F) A) and D)

Question 13

Which of the following is a decision that economists study?

Accepted Answer

A)   how much people work
B)   what people buy
C)   how much money people save
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 14

In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker

Accepted Answer

A)   decreased by 1.7 percent between 1998 and 2008.
B)   remained unchanged between 1998 and 2008.
C)   increased by 4.75 percent between 1998 and 2008.
D)   increased by 6.25 percent between 1998 and 2008.E) A) and B)
F) B) and D)

Question 15

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 16

Inflation is the primary determinant of a country's living standards.

Accepted Answer

A) True 
 B)False

Question 17

Use the following Scenario to answer the question 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 Use the following Scenario to answer the...

Question 18

The term refers to the size of the economic pie, and the term refers to how the pie is divided.

Accepted Answer

efficiency...

Question 19

People are likely to respond to a policy change

Accepted Answer

A)   only if they think the policy is a good one.
B)   only if the policy change changes the costs of their behavior.
C)   only if the policy change changes the benefits of their behavior.
D)   if the policy changes either the costs or benefits of their behavior.E) A) and D)
F) B) and C)

Question 20

Maureen's college raises the cost of room and board per semester. This increase raises Maureen'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 Maureen'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 Maureen'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 Maureen'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 Maureen's incentive to attend college.E) B) and C)
F) All of the above

Exam 1: Ten Principles of Economics

Inflation is the primary determinant of a country's living standards.

Correct Answer
verified

US citizens have better nutrition, better healthcare, and a longer life expectancy than citizens of Ghana. Which of the following conclusions can be drawn from this statement?

Correct Answer
verified

Which of the following is a decision that economists study?

Correct Answer
verified

The term refers to the size of the economic pie, and the term refers to how the pie is divided.

Correct Answer
verified
efficiency...
View Answer

In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker

Correct Answer
verified

The basic principles of economics suggest that

Correct Answer
verified

An increase in the marginal cost of an activity necessarily means that people will no longer engage in any of that activity.

Correct Answer
verified

Ashley eats two bananas during a particular day. The marginal benefit she enjoys from eating the second banana

Correct Answer
verified

Prices usually reflect

Correct Answer
verified

Correct Answer
verified

In economics, the cost of something is

Correct Answer
verified

Economics is the study of how society manages its

Correct Answer
verified

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

Correct Answer
verified

The term "market failure"

Correct Answer
verified

Which of the following firms is likely to have the greatest market power?

Correct Answer
verified

The classic tradeoff between "guns and butter" states that when a society spends more on national defense, it has less to spend on consumer goods to raise the standard of living.

Correct Answer
verified

Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

People are likely to respond to a policy change

Correct Answer
verified

Exam 1: Ten Principles of Economics

Inflation is the primary determinant of a country's living standards.

Correct AnswerverifiedShow Answer

US citizens have better nutrition, better healthcare, and a longer life expectancy than citizens of Ghana. Which of the following conclusions can be drawn from this statement?

Correct AnswerverifiedShow Answer

Which of the following is a decision that economists study?

Correct AnswerverifiedShow Answer

The term refers to the size of the economic pie, and the term refers to how the pie is divided.

Correct Answerverifiedefficiency...View AnswerShow Answer

In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker

Correct AnswerverifiedShow Answer

The basic principles of economics suggest that

Correct AnswerverifiedShow Answer

An increase in the marginal cost of an activity necessarily means that people will no longer engage in any of that activity.

Correct AnswerverifiedShow Answer

Ashley eats two bananas during a particular day. The marginal benefit she enjoys from eating the second banana

Correct AnswerverifiedShow Answer

Prices usually reflect

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In economics, the cost of something is

Correct AnswerverifiedShow Answer

Economics is the study of how society manages its

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The term "market failure"

Correct AnswerverifiedShow Answer

Which of the following firms is likely to have the greatest market power?

Correct AnswerverifiedShow Answer

The classic tradeoff between "guns and butter" states that when a society spends more on national defense, it has less to spend on consumer goods to raise the standard of living.

Correct AnswerverifiedShow Answer

Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

People are likely to respond to a policy change

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
efficiency...
View 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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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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