ECO 2023 Test Exams Chapter Final 1-4
Questions and Answers 2026-2027
Updated.
Making optimal decisions "at the margin" requires
A. making decisions according to one's whims and fancies.
B. making consistently irrational decisions.
C. weighing the costs and benefits of a decision before deciding if it should be pursued.
D. making borderline decisions. - Answer C. weighing the costs and benefits of a decision
before deciding if it should be pursued.
Microeconomics is the study of
A. how households and firms make choices.
B. the economy as a whole.
C. the global economy.
D. topics such as unemployment, inflation, and economic growth. - Answer A. how
households and firms make choices.
Economists assume that individuals
A. behave in unpredictable ways.
B. will never take actions to help others.
C. prefer to live in a society that values fairness above all else.
D. are rational and respond to incentives. - Answer D. are rational and respond to incentives.
________ have a horizontal and a vertical axis and are used in economics to illustrate
relationships between two economic variables.
A. Two-dimensional graphs
B. One-dimensional graphs
C. Pie Charts
D. Bar graphs - Answer A. Two-dimensional graphs
,Table 1-1
Hours Open Total Revenue (dollars)
1 $50
2 75
3 95
4 110
5 120
6 125
Lydia runs a small nail salon in the town of New Hope. She is debating whether she should
extend her hours of operation. Lydia figures that her sales revenue will depend on the number
of hours the nail salon is open as shown in the table above. She would have to hire a worker for
those hours at a wage rate of $10 per hour.
Refer to Table 1-1. What is Lydia's marginal cost if she decides to stay open for two hours
instead of one hour?
A. $10
B. $20
C. $25
D. $40 - Answer A. $10
Which of the following is a normative economic statement?
A. The price of gasoline is too high.
B. The current high price of gasoline is the result of strong worldwide demand.
C. When the price of gasoline rises, the quantity of gasoline purchased falls.
D. When the price of gasoline rises, transportation costs rise. - Answer A. The price of gasoline
is too high
Macroeconomics is the study of
A. how households make choices.
B. how firms make choices.
C. how households and firms make choices.
,D. the economy as a whole. - Answer D. the economy as a whole.
https://fiu.instructure.com/assessment_questions/676225/files/374958/download?
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Refer to Figure 1-3. Calculate the area of the trapezoid X.
A. $270
B. $720
C. $810
D. $2,520 - Answer C. $810
Table 1-1
Hours Open Total Revenue (dollars)
1 $50
2 75
3 95
4 110
5 120
6 125
Lydia runs a small nail salon in the town of New Hope. She is debating whether she should
extend her hours of operation. Lydia figures that her sales revenue will depend on the number
of hours the nail salon is open as shown in the table above. She would have to hire a worker for
those hours at a wage rate of $10 per hour.
Refer to Table 1-1. Using marginal analysis, how many hours should Lydia extend her nail salon's
hours of operations?
A. 2 hours
B. 3 hours
C. 4 hours
D. 5 hours
E. 6 hours - Answer D. 5 hours
The idea that because of scarcity, producing more of one good or service means producing less
of another good or service refers to the economic concept of
, A. optimization.
B. efficiency.
C. trade-off.
D. equity. - Answer C. trade-off.
Economics does not study correct or incorrect behaviors but rather it assumes that economic
agents behave ________, meaning they make the best decisions given their knowledge of the
costs and benefits.
A. equitably
B. rationally
C. emotionally
D. selfishly - Answer B. rationally
In economics, the term ________ means "additional" or "extra."
A. allocative
B. marginal
C. equity
D. optimal - Answer B. marginal
Suppose the U.S. government encouraged consumers to trade in their old automobiles for more
efficient, new models by paying up to $5,000 for the old automobiles. These consumers would
be exemplifying the economic idea that
A. people are rational.
B. people respond to economic incentives.
C. optimal decisions are made at the margin.
D. equity is more important than efficiency. - Answer B. people respond to economic
incentives
https://fiu.instructure.com/assessment_questions/676248/files/374960/download?
verifier=85bQQMlNMf5WG5iJojFsSZdJun7CmOdFX8u6gsQz
Refer to Figure 1-1. Using the information in the figure above, calculate the percentage change
in sales of alcoholic beverages between 2008 and 2011.
A. 23.1%
Questions and Answers 2026-2027
Updated.
Making optimal decisions "at the margin" requires
A. making decisions according to one's whims and fancies.
B. making consistently irrational decisions.
C. weighing the costs and benefits of a decision before deciding if it should be pursued.
D. making borderline decisions. - Answer C. weighing the costs and benefits of a decision
before deciding if it should be pursued.
Microeconomics is the study of
A. how households and firms make choices.
B. the economy as a whole.
C. the global economy.
D. topics such as unemployment, inflation, and economic growth. - Answer A. how
households and firms make choices.
Economists assume that individuals
A. behave in unpredictable ways.
B. will never take actions to help others.
C. prefer to live in a society that values fairness above all else.
D. are rational and respond to incentives. - Answer D. are rational and respond to incentives.
________ have a horizontal and a vertical axis and are used in economics to illustrate
relationships between two economic variables.
A. Two-dimensional graphs
B. One-dimensional graphs
C. Pie Charts
D. Bar graphs - Answer A. Two-dimensional graphs
,Table 1-1
Hours Open Total Revenue (dollars)
1 $50
2 75
3 95
4 110
5 120
6 125
Lydia runs a small nail salon in the town of New Hope. She is debating whether she should
extend her hours of operation. Lydia figures that her sales revenue will depend on the number
of hours the nail salon is open as shown in the table above. She would have to hire a worker for
those hours at a wage rate of $10 per hour.
Refer to Table 1-1. What is Lydia's marginal cost if she decides to stay open for two hours
instead of one hour?
A. $10
B. $20
C. $25
D. $40 - Answer A. $10
Which of the following is a normative economic statement?
A. The price of gasoline is too high.
B. The current high price of gasoline is the result of strong worldwide demand.
C. When the price of gasoline rises, the quantity of gasoline purchased falls.
D. When the price of gasoline rises, transportation costs rise. - Answer A. The price of gasoline
is too high
Macroeconomics is the study of
A. how households make choices.
B. how firms make choices.
C. how households and firms make choices.
,D. the economy as a whole. - Answer D. the economy as a whole.
https://fiu.instructure.com/assessment_questions/676225/files/374958/download?
verifier=Dcwc6tV3Dre1Iif9SG6fY1i1W8fq1bSY6LA8Ond7
Refer to Figure 1-3. Calculate the area of the trapezoid X.
A. $270
B. $720
C. $810
D. $2,520 - Answer C. $810
Table 1-1
Hours Open Total Revenue (dollars)
1 $50
2 75
3 95
4 110
5 120
6 125
Lydia runs a small nail salon in the town of New Hope. She is debating whether she should
extend her hours of operation. Lydia figures that her sales revenue will depend on the number
of hours the nail salon is open as shown in the table above. She would have to hire a worker for
those hours at a wage rate of $10 per hour.
Refer to Table 1-1. Using marginal analysis, how many hours should Lydia extend her nail salon's
hours of operations?
A. 2 hours
B. 3 hours
C. 4 hours
D. 5 hours
E. 6 hours - Answer D. 5 hours
The idea that because of scarcity, producing more of one good or service means producing less
of another good or service refers to the economic concept of
, A. optimization.
B. efficiency.
C. trade-off.
D. equity. - Answer C. trade-off.
Economics does not study correct or incorrect behaviors but rather it assumes that economic
agents behave ________, meaning they make the best decisions given their knowledge of the
costs and benefits.
A. equitably
B. rationally
C. emotionally
D. selfishly - Answer B. rationally
In economics, the term ________ means "additional" or "extra."
A. allocative
B. marginal
C. equity
D. optimal - Answer B. marginal
Suppose the U.S. government encouraged consumers to trade in their old automobiles for more
efficient, new models by paying up to $5,000 for the old automobiles. These consumers would
be exemplifying the economic idea that
A. people are rational.
B. people respond to economic incentives.
C. optimal decisions are made at the margin.
D. equity is more important than efficiency. - Answer B. people respond to economic
incentives
https://fiu.instructure.com/assessment_questions/676248/files/374960/download?
verifier=85bQQMlNMf5WG5iJojFsSZdJun7CmOdFX8u6gsQz
Refer to Figure 1-1. Using the information in the figure above, calculate the percentage change
in sales of alcoholic beverages between 2008 and 2011.
A. 23.1%
