Question 1

Which of the following products would be considered scarce?

Accepted Answer

A)  bread
B)  baseballs autographed by Babe Ruth
C)  motorcycles
D)  All of the above are correct.E) All of the above
F) B) and D)

Question 2

The adage, "There is no such thing as a free lunch," means

Accepted Answer

A)  even people on welfare have to pay for food.
B)  the cost of living is always increasing.
C)  people face tradeoffs.
D)  all costs are included in the price of a product.E) All of the above
F) A) and D)

Question 3

A rational decisionmaker

Accepted Answer

A)  ignores marginal changes and focuses instead on "the big picture."
B)  ignores the likely effects of government policies when he or she makes choices.
C)  takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.
D)  takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions.E) All of the above
F) A) and D)

Question 4

The combination of President Obama's strategies and the Federal Reserve's reaction to the deep economic downturn in the US in 2008 and 2009

Accepted Answer

A)  was intended to reduce unemployment.
B)  may lead to excessive inflation over time.
C)  resulted in higher taxes and an increased supply of money.
D)  Both a and b are correct.E) A) and B)
F) A) and C)

Question 5

Evidence indicates that seat belt laws have led to

Accepted Answer

A)  fewer pedestrian deaths.
B)  fewer automobile accidents.
C)  fewer deaths per automobile accident.
D)  All of the above are correct.E) A) and B)
F) A) and D)

Question 6

Scenario 1-1
You have the afternoon free. You have a choice between going to the movies with a friend or studying economics for three hours. If you go to the movies, you will spend $8.00 on a ticket and $4.50 on popcorn. If you choose to study economics for three hours, you will raise your exam grade by 10 points.
-Refer to Scenario 1-1. What is your opportunity cost of studying economics?

Accepted Answer

The enjoyment you wo...

Question 7

A variety of fuels can be used to generate electricity. Considering only the availability of the fuel and not the cost of converting it into electricity, which of the following fuels is most scarce?

Accepted Answer

A)  ​wind power
B)  ​solar energy
C)  ​fossil fuel
D)  ​hydro-powerE) All of the above
F) A) and B)

Question 8

Senator Jackson argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Feldman objects that this policy would benefit the rich at the expense of the poor.

Accepted Answer

A)  Both senators' arguments are primarily about equality.
B)  Both senators' arguments are primarily about efficiency.
C)  Senator Jackson's argument is primarily about equality, while Senator Feldman's argument is primarily about efficiency.
D)  Senator Jackson's argument is primarily about efficiency, while Senator Feldman's argument is primarily about equality.E) None of the above
F) A) and C)

Question 9

It once took 90 percent of our population to grow our food. It now takes only 3 percent of the population to grow our food. Which of the following statements is true?

Accepted Answer

A)  This loss of jobs has been detrimental to our economy.
B)  The government should provide subsidies to encourage more people to become farmers.
C)  The reduction in the number of farmers explains the increase in the price of food.
D)  This is progress because freed-up labor is used to produce other goods.E) A) and C)
F) B) and C)

Question 10

Scenario 1-2
Suppose that you have a choice between going to the movies with a friend for two hours or working at your job. If you go to the movies, you will spend $7 on a ticket and $5 on popcorn. If you choose to work, you will earn $10 an hour.
-Refer to Scenario 1-2. What is your opportunity cost of working?

Accepted Answer

The enjoyment you wo...

Question 11

Economists use the term ______ to refer to the ability of a single person (or a small group) to have a substantial influence on market prices.

Accepted Answer

The answer of Economists use the term ______ to refer...

Question 12

Government policies that improve equality usually increase efficiency at the same time.

Accepted Answer

A) True 
 B)False

Question 13

Mary and Martha both can make cookies and cakes of the same quality, though Mary can make more of both cookies and cakes per hour than Martha. With the bake-sale quickly approaching, they want to make as many cookies and cakes as possible. In which of the following situations will the most cookies and cakes be made?

Accepted Answer

A)  Mary makes as many cookies and cakes as she can, while Martha does nothing.
B)  Martha makes as many cookies and cakes as she can, while Mary does nothing.
C)  ​Mary and Martha both specialize in what they are better at making.
D)  There is not enough information.E) A) and B)
F) B) and D)

Question 14

Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless the marginal

Accepted Answer

A)  cost of teaching increased.
B)  benefit of teaching increased.
C)  cost of a corporate job increased.
D)  benefit of a corporate job decreased.E) B) and C)
F) B) and D)

Question 15

The income of a typical worker in a country is most closely linked to which of the following?

Accepted Answer

A)  population
B)  productivity
C)  market power
D)  government policiesE) A) and B)
F) A) and C)

Question 16

Give an example of a trade-off faced by society.

Accepted Answer

Efficiency and equality; a cle...

Question 17

What are the two basic types of economies?

Accepted Answer

Centrally ...

Question 18

Public policies

Accepted Answer

A)  may be able to improve either economic efficiency or equality.
B)  may be able to improve economic efficiency but cannot improve equality.
C)  may be able to improve equality but cannot improve economic efficiency.
D)  cannot improve either equality or economic efficiency.E) All of the above
F) A) and B)

Question 19

In a centrally-planned economy, economic activity is guided by ______.

Accepted Answer

The answer of In a centrally-planned economy, economic activity is...

Question 20

The famous observation that households and firms interacting in markets act as if they are guided by an "invisible hand" that leads them to desirable market outcomes comes from whose 1776 book?

Accepted Answer

A)  David Ricardo
B)  Thorstein Veblen
C)  John Maynard Keynes
D)  Adam SmithE) A) and B)
F) A) and C)

Exam 1: Ten Principles of Economics

Economists use the term ______ to refer to the ability of a single person (or a small group) to have a substantial influence on market prices.

Correct Answer
verified

Give an example of a trade-off faced by society.

Correct Answer
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Efficiency and equality; a cle...
View Answer

The income of a typical worker in a country is most closely linked to which of the following?

Correct Answer
verified

What are the two basic types of economies?

Correct Answer
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Centrally ...
View Answer

In a centrally-planned economy, economic activity is guided by ______.

Correct Answer
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Correct Answer
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A variety of fuels can be used to generate electricity. Considering only the availability of the fuel and not the cost of converting it into electricity, which of the following fuels is most scarce?

Correct Answer
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Correct Answer
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The enjoyment you wo...
View Answer

Correct Answer
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The enjoyment you wo...
View Answer

Which of the following products would be considered scarce?

Correct Answer
verified

Evidence indicates that seat belt laws have led to

Correct Answer
verified

It once took 90 percent of our population to grow our food. It now takes only 3 percent of the population to grow our food. Which of the following statements is true?

Correct Answer
verified

The famous observation that households and firms interacting in markets act as if they are guided by an "invisible hand" that leads them to desirable market outcomes comes from whose 1776 book?

Correct Answer
verified

Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless the marginal

Correct Answer
verified

Public policies

Correct Answer
verified

A rational decisionmaker

Correct Answer
verified

The adage, "There is no such thing as a free lunch," means

Correct Answer
verified

Government policies that improve equality usually increase efficiency at the same time.

Correct Answer
verified

The combination of President Obama's strategies and the Federal Reserve's reaction to the deep economic downturn in the US in 2008 and 2009

Correct Answer
verified

Senator Jackson argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Feldman objects that this policy would benefit the rich at the expense of the poor.

Correct Answer
verified

Exam 1: Ten Principles of Economics

Economists use the term ______ to refer to the ability of a single person (or a small group) to have a substantial influence on market prices.

Correct AnswerverifiedShow Answer

Give an example of a trade-off faced by society.

Correct AnswerverifiedEfficiency and equality; a cle...View AnswerShow Answer

The income of a typical worker in a country is most closely linked to which of the following?

Correct AnswerverifiedShow Answer

What are the two basic types of economies?

Correct AnswerverifiedCentrally ...View AnswerShow Answer

In a centrally-planned economy, economic activity is guided by ______.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A variety of fuels can be used to generate electricity. Considering only the availability of the fuel and not the cost of converting it into electricity, which of the following fuels is most scarce?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe enjoyment you wo...View AnswerShow Answer

Correct AnswerverifiedThe enjoyment you wo...View AnswerShow Answer

Which of the following products would be considered scarce?

Correct AnswerverifiedShow Answer

Evidence indicates that seat belt laws have led to

Correct AnswerverifiedShow Answer

It once took 90 percent of our population to grow our food. It now takes only 3 percent of the population to grow our food. Which of the following statements is true?

Correct AnswerverifiedShow Answer

The famous observation that households and firms interacting in markets act as if they are guided by an "invisible hand" that leads them to desirable market outcomes comes from whose 1776 book?

Correct AnswerverifiedShow Answer

Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless the marginal

Correct AnswerverifiedShow Answer

Public policies

Correct AnswerverifiedShow Answer

A rational decisionmaker

Correct AnswerverifiedShow Answer

The adage, "There is no such thing as a free lunch," means

Correct AnswerverifiedShow Answer

Government policies that improve equality usually increase efficiency at the same time.

Correct AnswerverifiedShow Answer

The combination of President Obama's strategies and the Federal Reserve's reaction to the deep economic downturn in the US in 2008 and 2009

Correct AnswerverifiedShow Answer

Senator Jackson argues that replacing the federal income tax with a national sales tax would increase the level of output. Senator Feldman objects that this policy would benefit the rich at the expense of the poor.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Efficiency and equality; a cle...
View Answer

Correct Answer
verified

Correct Answer
verified
Centrally ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The enjoyment you wo...
View Answer

Correct Answer
verified
The enjoyment you wo...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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