Introduction to Economics Exam 1
Questions With Correct Answers
Economics is concerned with: | | |
a.earning as much money as possible
| | | | |
b.limiting individuals' wants so that our scarce resources will not be
| | | | | | | | | | |
used up |
c.using scarce resources to satisfy virtually limitless material wants and
| | | | | | | | | |
needs
d.using as many workers as possible to produce any given level of
| | | | | | | | | | | |
output - CORRECT ANSWER✔✔-c. using scarce resources to satisfy
| | | | | | | | |
virtually limitless material wants and needs
| | | | |
The cost of a purchase measured by what is given up to make the
| | | | | | | | | | | | | |
purchase is its: | |
a.sunk cost |
b.hidden cost |
c.overhead cost |
d.opportunity cost - CORRECT ANSWER✔✔-d.opportunity cost| | | | |
Application 1.1, "To Work or Not to Work," focuses on the:
| | | | | | | | | |
,a.cost to parents when adult working children move back home after
| | | | | | | | | | |
graduating from college | |
b.effects on high school students' grades, and social and other activities
| | | | | | | | | | |
from working long hours while in school
| | | | | |
c.amounts cities spend to keep businesses from relocating elsewhere in
| | | | | | | | | |
order to keep employment rates high
| | | | |
d.amounts people spend on child care, transportation, and
| | | | | | |
"professional wardrobes," in order to keep high-paying jobs - CORRECT
| | | | | | | | | | |
ANSWER✔✔-b.effects on high school students' grades, and social and | | | | | | | | |
other activities from working long hours while in school
| | | | | | | |
Increasing efficiency will: | |
a.increase the problem of scarcity
| | | | |
b.reduce the problem of scarcity
| | | |
c.eliminate the problem of scarcity | | | |
d.have no effect on the problem of scarcity because there is a fixed
| | | | | | | | | | | | |
supply of resources - CORRECT ANSWER✔✔-b. reduce the problem of
| | | | | | | | | |
scarcity
Whether a distribution of goods and services is fair or just is a question
| | | | | | | | | | | | | |
of:
a.equity
b.efficiency
c.how to produce at a minimum cost
| | | | | |
,d.maximizing the employment of scarce resources - CORRECT
| | | | | | | |
ANSWER✔✔-a. equity |
The factor of production that organizes economic activity and bears the
| | | | | | | | | | |
risk of success or failure in a business venture is:
| | | | | | | | |
a.labor
b.capital
c.entrepreneurship
d.all of the above - CORRECT ANSWER✔✔-c.entrepreneurship
| | | | | |
The four factors of production are:
| | | | |
a.interest, profit, rent and wages
| | | |
b.capital, entrepreneurship, labor and land
| | | |
c.buildings,equipment,natural resources and supplies | | |
d.management,money, natural resources and workers - CORRECT | | | | | | |
ANSWER✔✔-b.capital, entrepreneurship, labor and land | | | |
Which of the following statements is true?
| | | | | |
a.Organizing other resources is one function of an entrepreneur
| | | | | | | |
b.Only real estate is included in the factor of production category
| | | | | | | | | | |
termed land |
, c.the factor of production category termed capital includes stocks,
| | | | | | | | |
bonds, and money - CORRECT ANSWER✔✔-a. organizing other
| | | | | | | |
resources is one function of entrepreneur
| | | | |
According to Application 1.2, "Does Money Buy Happiness?":
| | | | | | |
a.there have been no studies on how having more money affects
| | | | | | | | | | |
happiness
b.there have been studies on money buying happiness, but they have
| | | | | | | | | | |
arrived at different conclusion
| | |
c.there is clear evidence that having more money will always increase a
| | | | | | | | | | | |
person's happiness more than anything else
| | | | |
d.almost all studies show that having more money makes people less
| | | | | | | | | | |
happy because the more money they have the more goods they want -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-b.there have been studies on money buying, but
| | | | | | | |
they arrived at different conclusion
| | | | |
An economic theory may be disputed because it:
| | | | | | |
a.focuses on just two variables | | | |
b.sometimes uses unrealistic assumptions | | |
c.cannot give a precise cause-and-effect relationship, like that found in
| | | | | | | | | |
the physical sciences
| |
d.all of the above - CORRECT ANSWER✔✔-d.all of the above
| | | | | | | | |
Econometrics:
Questions With Correct Answers
Economics is concerned with: | | |
a.earning as much money as possible
| | | | |
b.limiting individuals' wants so that our scarce resources will not be
| | | | | | | | | | |
used up |
c.using scarce resources to satisfy virtually limitless material wants and
| | | | | | | | | |
needs
d.using as many workers as possible to produce any given level of
| | | | | | | | | | | |
output - CORRECT ANSWER✔✔-c. using scarce resources to satisfy
| | | | | | | | |
virtually limitless material wants and needs
| | | | |
The cost of a purchase measured by what is given up to make the
| | | | | | | | | | | | | |
purchase is its: | |
a.sunk cost |
b.hidden cost |
c.overhead cost |
d.opportunity cost - CORRECT ANSWER✔✔-d.opportunity cost| | | | |
Application 1.1, "To Work or Not to Work," focuses on the:
| | | | | | | | | |
,a.cost to parents when adult working children move back home after
| | | | | | | | | | |
graduating from college | |
b.effects on high school students' grades, and social and other activities
| | | | | | | | | | |
from working long hours while in school
| | | | | |
c.amounts cities spend to keep businesses from relocating elsewhere in
| | | | | | | | | |
order to keep employment rates high
| | | | |
d.amounts people spend on child care, transportation, and
| | | | | | |
"professional wardrobes," in order to keep high-paying jobs - CORRECT
| | | | | | | | | | |
ANSWER✔✔-b.effects on high school students' grades, and social and | | | | | | | | |
other activities from working long hours while in school
| | | | | | | |
Increasing efficiency will: | |
a.increase the problem of scarcity
| | | | |
b.reduce the problem of scarcity
| | | |
c.eliminate the problem of scarcity | | | |
d.have no effect on the problem of scarcity because there is a fixed
| | | | | | | | | | | | |
supply of resources - CORRECT ANSWER✔✔-b. reduce the problem of
| | | | | | | | | |
scarcity
Whether a distribution of goods and services is fair or just is a question
| | | | | | | | | | | | | |
of:
a.equity
b.efficiency
c.how to produce at a minimum cost
| | | | | |
,d.maximizing the employment of scarce resources - CORRECT
| | | | | | | |
ANSWER✔✔-a. equity |
The factor of production that organizes economic activity and bears the
| | | | | | | | | | |
risk of success or failure in a business venture is:
| | | | | | | | |
a.labor
b.capital
c.entrepreneurship
d.all of the above - CORRECT ANSWER✔✔-c.entrepreneurship
| | | | | |
The four factors of production are:
| | | | |
a.interest, profit, rent and wages
| | | |
b.capital, entrepreneurship, labor and land
| | | |
c.buildings,equipment,natural resources and supplies | | |
d.management,money, natural resources and workers - CORRECT | | | | | | |
ANSWER✔✔-b.capital, entrepreneurship, labor and land | | | |
Which of the following statements is true?
| | | | | |
a.Organizing other resources is one function of an entrepreneur
| | | | | | | |
b.Only real estate is included in the factor of production category
| | | | | | | | | | |
termed land |
, c.the factor of production category termed capital includes stocks,
| | | | | | | | |
bonds, and money - CORRECT ANSWER✔✔-a. organizing other
| | | | | | | |
resources is one function of entrepreneur
| | | | |
According to Application 1.2, "Does Money Buy Happiness?":
| | | | | | |
a.there have been no studies on how having more money affects
| | | | | | | | | | |
happiness
b.there have been studies on money buying happiness, but they have
| | | | | | | | | | |
arrived at different conclusion
| | |
c.there is clear evidence that having more money will always increase a
| | | | | | | | | | | |
person's happiness more than anything else
| | | | |
d.almost all studies show that having more money makes people less
| | | | | | | | | | |
happy because the more money they have the more goods they want -
| | | | | | | | | | | | |
CORRECT ANSWER✔✔-b.there have been studies on money buying, but
| | | | | | | |
they arrived at different conclusion
| | | | |
An economic theory may be disputed because it:
| | | | | | |
a.focuses on just two variables | | | |
b.sometimes uses unrealistic assumptions | | |
c.cannot give a precise cause-and-effect relationship, like that found in
| | | | | | | | | |
the physical sciences
| |
d.all of the above - CORRECT ANSWER✔✔-d.all of the above
| | | | | | | | |
Econometrics:
