Question 1

A local street festival that previously sold bracelets in exchange for unlimited alcohol consumption is now concerned about the overconsumption of alcohol.If they switch to selling tickets per drink,will overall consumption at next year's festival decrease?

Accepted Answer

A)   No, because the marginal cost per extra beer will decrease for consumers.
B)   No, because the marginal cost per extra beer will increase for consumers.
C)   Yes, because the marginal cost per extra beer will increase for consumers.
D)   Yes, because the marginal benefit per extra beer will increase for consumers.E) None of the above
F) A) and C)

Question 2

Making a decision "on the margin" involves comparing:

Accepted Answer

A)   additional benefits against additional costs.
B)   total benefits against total costs, which include benefits and costs from past decisions.
C)   sunk costs against opportunity costs.
D)   the most benefit you could expect to get without considering costs.E) A) and B)
F) C) and D)

Question 3

Which of the following is not considered an economic resource?

Accepted Answer

A)   Real estate
B)   A personal relationship
C)   Cash
D)   These are all examples of a resource.E) A) and B)
F) B) and D)

Question 4

The greatest constraint faced by banks considering the alternative of lending to Bangladeshi villagers is:

Accepted Answer

A)   not having qualified loan officers to make the loans.
B)   having limited funds available for loans.
C)   not being able to determine appropriate currency exchange rates.
D)   counterfeit Carfax reports that make it difficult to properly assess collateral.E) B) and C)
F) A) and D)

Question 5

"More people purchase chap stick when the weather man announces that we are in for a very windy week." This statement implies that:

Accepted Answer

A)   buying Chap Stick causes it to be windy.
B)   people plan on kissing more on windy days.
C)   buying Chap Stick is positively correlated with the announcement of a windy week.
D)   the weather man is getting a kickback from the makers of Chap Stick.E) A) and B)
F) B) and C)

Question 6

Scarcity is:

Accepted Answer

A)   a fact of life because of limited resources.
B)   not a problem for Bill Gates because he is a billionaire.
C)   can be eliminated by rational decision making.
D)   is a problem studied in microeconomics but is not a macroeconomic concern.E) None of the above
F) A) and B) A

Question 7

The extra benefit associated with producing or consuming the next unit is called the:

Accepted Answer

A)   revenue product.
B)   spillover.
C)   marginal benefit.
D)   economic benefit.E) B) and D)
F) B) and C)

Question 8

A resource is defined to be:

Accepted Answer

A)   something that people respond to.
B)   anything that can be used to make something of value.
C)   a good or service.
D)   something of value.E) A) and B)
F) A) and C)

Question 9

Which of the following is a not direct result of scarcity?

Accepted Answer

A)   Buildings in New York City are taller than buildings in Greenville, SC due to fewer acres of land per person.
B)   Due to high gas prices, Shana decides to trade her Chevy Tahoe for a Honda Accord.
C)   A college student misses a test review in order to sleep in.
D)   The total amount of air we can breathe as others draw breaths from that same air space.E) B) and C)
F) A) and D)

Question 10

The Widgetville County Wolfpack has won 90 percent of their last 20 games played under a full moon.This means:

Accepted Answer

A)   the weather affects how they play.
B)   there is a positive correlation between their play and the occurrence of a full moon.
C)   that full moons cause the team to play better.
D)   that causation can be found between the two events.E) A) and D)
F) All of the above

Question 11

Mitt Romney argued in a debate with President Obama that the economy had grown more slowly in each year of the President's term than in the year prior to Obama's presidency.This claim is most related to the field of:

Accepted Answer

A)   microeconomics.
B)   public policy.
C)   macroeconomics.
D)   financial economics.E) B) and C)
F) B) and D)

Question 12

When we believe the best result will come from the decision we have made,we are being:

Accepted Answer

A)   gullible.
B)   short-sighted.
C)   rational.
D)   considerate.E) A) and C)
F) A) and B)

Question 13

People choose to do something:

Accepted Answer

A)   when they believe the benefits outweigh the costs of the decision.
B)   when they believe the costs outweigh the benefits of the decision.
C)   when they believe their decision cannot be questioned by anyone else.
D)   when they believe it won't harm anyone and will better themselves.E) A) and B)
F) A) and C)

Question 14

After purchasing a coffee cup from your local gas station for $5.00,you can always refill your cup for $0.50.The marginal cost of your 10th cup of coffee purchased at the gas station is:

Accepted Answer

A)   $0.50.
B)   $5.00.
C)   $10.00.
D)   $5.50.E) B) and C)
F) C) and D)

Question 15

You are shopping at the local mall with an $80 gift certificate.Only three items catch your attention.The items include a Justin Bieber sheet set,a remote control helicopter,and an "Amazing Ab Belt." You would be willing to give up $60 for the sheets,$70 for the belt,and $80 for the helicopter.Knowing this,you decide to purchase the helicopter.The opportunity cost of the helicopter was:

Accepted Answer

A)   $130, the combined value of the alternatives forgone.
B)   $80, the amount of the gift certificate spent.
C)   $70, the value of the ab belt.
D)   $60, the value of the sheets.E) None of the above
F) B) and D) C

Question 16

Why wasn't everyone else already implementing group responsibility to lend to the poor in the example in the text?

Accepted Answer

A)   Governments of poor countries had regulations against group responsibility.
B)   The idea was genuinely new.
C)   It was not profitable.
D)   It was easy for groups to provide false social security numbers for members that did not exist.E) A) and B)
F) A) and C)

Question 17

Macroeconomics includes the study of:

Accepted Answer

A)   How the economy works on a regional, national, or international scale.
B)   How rent ceilings impact the construction rates of new apartments.
C)   How the increase in the labor force participation rate by females impacts childhood obesity.
D)   How grocery cart rental fees impact parking lot accident rates.E) A) and B)
F) B) and D)

Question 18

As monthly rain levels rise,golf course revenue falls because casual golfers prefer to stay dry.This is an example of:

Accepted Answer

A)   scarcity.
B)   incentives.
C)   normative analysis.
D)   correlation and causation.E) All of the above
F) A) and C)

Question 19

The only rental house available at your favorite lake on July 4th is out of your price range.This is an example of:

Accepted Answer

A)   a resource constraint.
B)   why you should have a yard sale.
C)   why everyone isn't already doing it.
D)   an infringement upon your freedoms enjoyed as a patriotic American.E) A) and B)
F) A) and C) A

Question 20

The broad field of _____________ would most likely study how all consumers respond to a hike in cigarette taxes.

Accepted Answer

A)   microeconomics
B)   development economics
C)   macroeconomics
D)   labor economicsE) All of the above
F) A) and B)

Exam 1: Economics and Life

A local street festival that previously sold bracelets in exchange for unlimited alcohol consumption is now concerned about the overconsumption of alcohol.If they switch to selling tickets per drink,will overall consumption at next year's festival decrease?

Correct Answer
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Making a decision "on the margin" involves comparing:

Correct Answer
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Which of the following is not considered an economic resource?

Correct Answer
verified

The greatest constraint faced by banks considering the alternative of lending to Bangladeshi villagers is:

Correct Answer
verified

"More people purchase chap stick when the weather man announces that we are in for a very windy week." This statement implies that:

Correct Answer
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Scarcity is:

Correct Answer
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A

The extra benefit associated with producing or consuming the next unit is called the:

Correct Answer
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A resource is defined to be:

Correct Answer
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Which of the following is a not direct result of scarcity?

Correct Answer
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The Widgetville County Wolfpack has won 90 percent of their last 20 games played under a full moon.This means:

Correct Answer
verified

Mitt Romney argued in a debate with President Obama that the economy had grown more slowly in each year of the President's term than in the year prior to Obama's presidency.This claim is most related to the field of:

Correct Answer
verified

When we believe the best result will come from the decision we have made,we are being:

Correct Answer
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People choose to do something:

Correct Answer
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After purchasing a coffee cup from your local gas station for $5.00,you can always refill your cup for $0.50.The marginal cost of your 10^th cup of coffee purchased at the gas station is:

Correct Answer
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Correct Answer
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C

Why wasn't everyone else already implementing group responsibility to lend to the poor in the example in the text?

Correct Answer
verified

Macroeconomics includes the study of:

Correct Answer
verified

As monthly rain levels rise,golf course revenue falls because casual golfers prefer to stay dry.This is an example of:

Correct Answer
verified

The only rental house available at your favorite lake on July 4^th is out of your price range.This is an example of:

Correct Answer
verified
A

The broad field of _____________ would most likely study how all consumers respond to a hike in cigarette taxes.

Correct Answer
verified

Exam 1: Economics and Life

A local street festival that previously sold bracelets in exchange for unlimited alcohol consumption is now concerned about the overconsumption of alcohol.If they switch to selling tickets per drink,will overall consumption at next year's festival decrease?

Correct AnswerverifiedShow Answer

Making a decision "on the margin" involves comparing:

Correct AnswerverifiedShow Answer

Which of the following is not considered an economic resource?

Correct AnswerverifiedShow Answer

The greatest constraint faced by banks considering the alternative of lending to Bangladeshi villagers is:

Correct AnswerverifiedShow Answer

"More people purchase chap stick when the weather man announces that we are in for a very windy week." This statement implies that:

Correct AnswerverifiedShow Answer

Scarcity is:

Correct AnswerverifiedA

The extra benefit associated with producing or consuming the next unit is called the:

Correct AnswerverifiedShow Answer

A resource is defined to be:

Correct AnswerverifiedShow Answer

Which of the following is a not direct result of scarcity?

Correct AnswerverifiedShow Answer

The Widgetville County Wolfpack has won 90 percent of their last 20 games played under a full moon.This means:

Correct AnswerverifiedShow Answer

Mitt Romney argued in a debate with President Obama that the economy had grown more slowly in each year of the President's term than in the year prior to Obama's presidency.This claim is most related to the field of:

Correct AnswerverifiedShow Answer

When we believe the best result will come from the decision we have made,we are being:

Correct AnswerverifiedShow Answer

People choose to do something:

Correct AnswerverifiedShow Answer

After purchasing a coffee cup from your local gas station for $5.00,you can always refill your cup for $0.50.The marginal cost of your 10th cup of coffee purchased at the gas station is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

Why wasn't everyone else already implementing group responsibility to lend to the poor in the example in the text?

Correct AnswerverifiedShow Answer

Macroeconomics includes the study of:

Correct AnswerverifiedShow Answer

As monthly rain levels rise,golf course revenue falls because casual golfers prefer to stay dry.This is an example of:

Correct AnswerverifiedShow Answer

The only rental house available at your favorite lake on July 4th is out of your price range.This is an example of:

Correct AnswerverifiedA

The broad field of _____________ would most likely study how all consumers respond to a hike in cigarette taxes.

Correct AnswerverifiedShow 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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A

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
verified

After purchasing a coffee cup from your local gas station for $5.00,you can always refill your cup for $0.50.The marginal cost of your 10^th cup of coffee purchased at the gas station is:

Correct Answer
verified

Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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The only rental house available at your favorite lake on July 4^th is out of your price range.This is an example of:

Correct Answer
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A

Correct Answer
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