UNT ECON 1100 Final Exam
Microeconomics is the study of - correct answer-decisions and behaviors of individuals and
businesses
"McDonald's should raise the wage it pays to all of its hourly employees" is an example of a:
- correct answer-Normative microeconomic statement
The study of economics is centered around the condition of: - correct answer-Scarcity,
Which forces all societies to make decisions about how to allocate scarce resources among
competing uses.
Beth quit her job as a computer programmer for a large corporation to begin her own
computer repair business in her garage. To do this she took $10,000 out of her retirement
fund and hired her brother, Will, on an hourly basis. As a factor of production, Beth is best
classified as ____________ and Will is best classified as ____________. - correct
answer-An entrepreneur; Labor
The opportunity cost to a student of attending a class lecture is the: - correct answer-Value
of the next best alternative use of the student's time.
The old statement "what's good for General Motors is good for the entire nation" is a
possible example of the: - correct answer-Fallacy of composition
In a capitalist market economy, economic activity is mainly guided by: - correct
answer-Self-Interest and prices
In the simple circular flow model, business firms: - correct answer-demand labor in resource
markets
A production possibilities frontier for two outputs is drawn assuming that: - correct
answer-the amount of resources currently available for production is fixed.
The economic argument supporting free trade is based on the principle of: - correct
answer-Comparative advantage
If Paul is able to produce a greater number of chairs per hour than Kaitlyn, then: - correct
answer-Paul has an absolute advantage in the production of chairs.
According to the law of supply, a decrease in the price of binders will, ceteris paribus: -
correct answer-decrease the quantity supplied of binders
If an increase in the price of good A causes the demand for good B it increase, then: -
correct answer-goods A and B are substitutes
Microeconomics is the study of - correct answer-decisions and behaviors of individuals and
businesses
"McDonald's should raise the wage it pays to all of its hourly employees" is an example of a:
- correct answer-Normative microeconomic statement
The study of economics is centered around the condition of: - correct answer-Scarcity,
Which forces all societies to make decisions about how to allocate scarce resources among
competing uses.
Beth quit her job as a computer programmer for a large corporation to begin her own
computer repair business in her garage. To do this she took $10,000 out of her retirement
fund and hired her brother, Will, on an hourly basis. As a factor of production, Beth is best
classified as ____________ and Will is best classified as ____________. - correct
answer-An entrepreneur; Labor
The opportunity cost to a student of attending a class lecture is the: - correct answer-Value
of the next best alternative use of the student's time.
The old statement "what's good for General Motors is good for the entire nation" is a
possible example of the: - correct answer-Fallacy of composition
In a capitalist market economy, economic activity is mainly guided by: - correct
answer-Self-Interest and prices
In the simple circular flow model, business firms: - correct answer-demand labor in resource
markets
A production possibilities frontier for two outputs is drawn assuming that: - correct
answer-the amount of resources currently available for production is fixed.
The economic argument supporting free trade is based on the principle of: - correct
answer-Comparative advantage
If Paul is able to produce a greater number of chairs per hour than Kaitlyn, then: - correct
answer-Paul has an absolute advantage in the production of chairs.
According to the law of supply, a decrease in the price of binders will, ceteris paribus: -
correct answer-decrease the quantity supplied of binders
If an increase in the price of good A causes the demand for good B it increase, then: -
correct answer-goods A and B are substitutes
