Question 1

Thomas Malthus's model made the mistake of failing to consider:

Accepted Answer

A)   technological progress.
B)   inflation.
C)   comparative advantage.
D)   scarcity.E) A) and B)
F) B) and C)

Question 2

A college student decides to spend the afternoon watching three movies rented from Red Box. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the 2nd movie?

Accepted Answer

A)   $1
B)   $8
C)   $4
D)   $2E) B) and D)
F) B) and C)

Question 3

Individuals, firms, and societies are limited in the amount of goods and services that they can produce. This is a direct result of:

Accepted Answer

A)   unemployment.
B)   waste.
C)   irrational behavior.
D)   scarcity.E) A) and C)
F) A) and B)

Question 4

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) None of the above
F) A) and B)

Question 5

A statement that "a hair stylist should not have to obtain a cosmetology license" is an example of what kind of statement?

Accepted Answer

A)   Uninformed
B)   Biased
C)   Positive
D)   NormativeE) B) and C)
F) A) and D)

Question 6

You may incorrectly conclude that an idea no other person has implemented is highly profitable because:

Accepted Answer

A)   you misjudged people's wants and constraints.
B)   you miscalculated the trade-offs people face.
C)   you misunderstood how people would respond to incentives.
D)   All of these.E) A) and B)
F) B) and C)

Question 7

A rational choice is one that:

Accepted Answer

A)   allows individuals to reach their goals.
B)   involves the use of strategic decision making in an effort to reach a goal.
C)   does not involve self-interested behavior.
D)   is usually optimized when decision makers are poorly informed about alternatives.E) B) and C)
F) None of the above

Question 8

Decisions about how to allocate resources are made by:

Accepted Answer

A)   individuals.
B)   businesses.
C)   governments.
D)   Decision about resource allocation are made by all of the aboveE) A) and B)
F) C) and D)

Question 9

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 10

Your school offers college seniors one "free" college course. Is this course also free to society?

Accepted Answer

A)   Yes, because the seniors live in society.
B)   Yes, because the school has satisfied the assumption of making a rational choice.
C)   No, because if a college-senior takes the last seat in the class, t then a paying student will not have the opportunity to take it.
D)   No, because some students will not take a free class seriously and will ultimately become less productive workers.E) A) and C)
F) B) and C)

Question 11

If an idea has not been implemented because a monopoly producer has placed a barrier to entry, the circumstances are not normal due to:

Accepted Answer

A)   innovation.
B)   market failure.
C)   intervention.
D)   goals other than profit.E) None of the above
F) A) and B)

Question 12

Alan could most directly apply the principles of economic decision making with respect to his job when:

Accepted Answer

A)   deciding how to spend his paycheck.
B)   deciding which girl to marry.
C)   deciding what to have for dinner after a long day at work.
D)   deciding which route on his way to work is the most scenic.E) B) and C)
F) None of the above

Question 13

In the textual example, Muhammad Yunus was highly successful in his use of applying social incentives through group responsibility in order to maximize loan repayment rates. This success created an incentive for other banks to:

Accepted Answer

A)   offer similar loans to the poor.
B)   go out of business.
C)   seek government action to ban group responsibility lending.
D)   avoid catering to a high risk group.E) B) and C)
F) A) and D)

Question 14

Which of the following describes a problem created by scarcity?

Accepted Answer

A)   The course you need to take in the fall is offered at times that conflict with your work schedule.
B)   The White House eliminates tours due to budget constraints.
C)   Your cell phone battery is low and you screen a phone call from afriend in case your significant other calls later.
D)   All of these.E) A) and B)
F) C) and D)

Question 15

If out of the two cities that send teams to the Super Bowl, the city with the lowest unemployment rate wins 70 percent of the time, there would be:

Accepted Answer

A)   a positive correlation between Super Bowl wins and low unemployment rates.
B)   evidence to conclude that richer cities always have better super bowl teams.
C)   the condition of ceteris paribus present in the winning cities.
D)   a negative correlation between Super Bowl wins and low unemployment rates.E) B) and D)
F) A) and D)

Question 16

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) None of the above
F) A) and B)

Question 17

"The United States should adopt more open trade policies because they historically have caused increased economic growth." This is an example of what kind of statement?

Accepted Answer

A)   Unequivocally true
B)   Normative
C)   Positive
D)   Unequivocally falseE) None of the above
F) A) and C)

Question 18

Jimmy is very excited about the costume party with a 1990s theme. He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch. His opportunity cost of arriving dressed like MC Hammer is:

Accepted Answer

A)   the cost of parachute pants that MC Hammer would wear.
B)   the savings from not purchasing red swimming trunks.
C)   giving up the alternative of dressing like a lifeguard.
D)   there is no opportunity cost because he attended the party either way.E) A) and B)
F) B) and C)

Question 19

The Bureau of Economic Analysis releases last quarter's growth rate in real GDP. This release would most likely have been written by what kind of an economist?

Accepted Answer

A)   A monetary economist
B)   A macroeconomist
C)   A microeconomist
D)   A labor economistE) A) and D)
F) A) and C)

Question 20

Which of the following is considered a microeconomic issue?

Accepted Answer

A)   Chinese economic growth has declined.
B)   The Federal Reserve cuts key interest rates in order to stimulate lending.
C)   Walmart decides to add more self-checkout machines as the cost of labor rises.
D)   India experiences a reduction in unemployment after opening its borders to trade.E) B) and C)
F) C) and D)

Exam 1: Economics and Life

Thomas Malthus's model made the mistake of failing to consider:

Correct Answer
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Decisions about how to allocate resources are made by:

Correct Answer
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You may incorrectly conclude that an idea no other person has implemented is highly profitable because:

Correct Answer
verified

If out of the two cities that send teams to the Super Bowl, the city with the lowest unemployment rate wins 70 percent of the time, there would be:

Correct Answer
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If an idea has not been implemented because a monopoly producer has placed a barrier to entry, the circumstances are not normal due to:

Correct Answer
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A statement that "a hair stylist should not have to obtain a cosmetology license" is an example of what kind of statement?

Correct Answer
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Which of the following describes a problem created by scarcity?

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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The Bureau of Economic Analysis releases last quarter's growth rate in real GDP. This release would most likely have been written by what kind of an economist?

Correct Answer
verified

Individuals, firms, and societies are limited in the amount of goods and services that they can produce. This is a direct result of:

Correct Answer
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Which of the following is considered a microeconomic issue?

Correct Answer
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Jimmy is very excited about the costume party with a 1990s theme. He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch. His opportunity cost of arriving dressed like MC Hammer is:

Correct Answer
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Macroeconomics includes the study of:

Correct Answer
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Your school offers college seniors one "free" college course. Is this course also free to society?

Correct Answer
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A rational choice is one that:

Correct Answer
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"The United States should adopt more open trade policies because they historically have caused increased economic growth." This is an example of what kind of statement?

Correct Answer
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Correct Answer
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A resource is defined to be:

Correct Answer
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Alan could most directly apply the principles of economic decision making with respect to his job when:

Correct Answer
verified

In the textual example, Muhammad Yunus was highly successful in his use of applying social incentives through group responsibility in order to maximize loan repayment rates. This success created an incentive for other banks to:

Correct Answer
verified

Exam 1: Economics and Life

Thomas Malthus's model made the mistake of failing to consider:

Correct AnswerverifiedShow Answer

Decisions about how to allocate resources are made by:

Correct AnswerverifiedShow Answer

You may incorrectly conclude that an idea no other person has implemented is highly profitable because:

Correct AnswerverifiedShow Answer

If out of the two cities that send teams to the Super Bowl, the city with the lowest unemployment rate wins 70 percent of the time, there would be:

Correct AnswerverifiedShow Answer

If an idea has not been implemented because a monopoly producer has placed a barrier to entry, the circumstances are not normal due to:

Correct AnswerverifiedShow Answer

A statement that "a hair stylist should not have to obtain a cosmetology license" is an example of what kind of statement?

Correct AnswerverifiedShow Answer

Which of the following describes a problem created by scarcity?

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

The Bureau of Economic Analysis releases last quarter's growth rate in real GDP. This release would most likely have been written by what kind of an economist?

Correct AnswerverifiedShow Answer

Individuals, firms, and societies are limited in the amount of goods and services that they can produce. This is a direct result of:

Correct AnswerverifiedShow Answer

Which of the following is considered a microeconomic issue?

Correct AnswerverifiedShow Answer

Jimmy is very excited about the costume party with a 1990s theme. He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch. His opportunity cost of arriving dressed like MC Hammer is:

Correct AnswerverifiedShow Answer

Macroeconomics includes the study of:

Correct AnswerverifiedShow Answer

Your school offers college seniors one "free" college course. Is this course also free to society?

Correct AnswerverifiedShow Answer

A rational choice is one that:

Correct AnswerverifiedShow Answer

"The United States should adopt more open trade policies because they historically have caused increased economic growth." This is an example of what kind of statement?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A resource is defined to be:

Correct AnswerverifiedShow Answer

Alan could most directly apply the principles of economic decision making with respect to his job when:

Correct AnswerverifiedShow Answer

In the textual example, Muhammad Yunus was highly successful in his use of applying social incentives through group responsibility in order to maximize loan repayment rates. This success created an incentive for other banks to:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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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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Correct Answer
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Correct Answer
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Correct Answer
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