Saylor Academy ECON101: Direct Credit Exam
Why does scarcity exist? - ANSWER-Resources are limited.
Which of the following is the most fundamental concept in economics? - ANSWER-
Scarcity
The Greek word for "economy" is oikonomos, which literally means a person who: -
ANSWER-manages a household.
What does the term "capital" refer to in economics? - ANSWER-The equipment, and
buildings used by firms
According to the production possibility frontier below, the economy of this country
can produce 50 boats and 25 cars (point Z). For strategic reasons the government
would like to produce 45 boats and 35 cars (point Y). What advice would you give to
the government of this country?
IMAGE - ANSWER-It is an impossible goal because there are too few resources.
Equality and efficiency are both terms used to judge economic outcomes. Although
they share similarities in meaning, they are different in which of the following ways? -
, ANSWER-Equality refers to a uniform distribution of economic benefits, while
efficiency refers to a maximization of economic benefits.
A firm has the lowest opportunity cost to produce a product when it: - ANSWER-
gives up the least to make the product.
In the circular flow model, what are the two main groups of actors in the economy?
What are the two markets that make up the economy? - ANSWER-The main groups of
actors are households and firms, and the two markets are the goods/services market
and the market for the factors of production.
Suppose that baristas at a coffee shop currently earn the legal minimum wage. What
is likely to happen if the minimum wage increases to $15 an hour? - ANSWER-The
supply of coffee will shift to the left.
Hops is an input in the production of beer. The demand for beer is declining. How will
this affect hops? - ANSWER-The demand for hops will decrease.
The supply of a good is determined by: - ANSWER-sellers of the good present in the
market
Some of the determinants of demand are: - ANSWER-price, price of compliments and
tastes/preferences.
If producers of a certain product are pessimistic or uncertain about the future
business climate, how will the supply of the product behave? - ANSWER--TRY This
expectation will affect future supply but not today's supply
-NOT This expectation will cause movement along the supply curve.
Why does scarcity exist? - ANSWER-Resources are limited.
Which of the following is the most fundamental concept in economics? - ANSWER-
Scarcity
The Greek word for "economy" is oikonomos, which literally means a person who: -
ANSWER-manages a household.
What does the term "capital" refer to in economics? - ANSWER-The equipment, and
buildings used by firms
According to the production possibility frontier below, the economy of this country
can produce 50 boats and 25 cars (point Z). For strategic reasons the government
would like to produce 45 boats and 35 cars (point Y). What advice would you give to
the government of this country?
IMAGE - ANSWER-It is an impossible goal because there are too few resources.
Equality and efficiency are both terms used to judge economic outcomes. Although
they share similarities in meaning, they are different in which of the following ways? -
, ANSWER-Equality refers to a uniform distribution of economic benefits, while
efficiency refers to a maximization of economic benefits.
A firm has the lowest opportunity cost to produce a product when it: - ANSWER-
gives up the least to make the product.
In the circular flow model, what are the two main groups of actors in the economy?
What are the two markets that make up the economy? - ANSWER-The main groups of
actors are households and firms, and the two markets are the goods/services market
and the market for the factors of production.
Suppose that baristas at a coffee shop currently earn the legal minimum wage. What
is likely to happen if the minimum wage increases to $15 an hour? - ANSWER-The
supply of coffee will shift to the left.
Hops is an input in the production of beer. The demand for beer is declining. How will
this affect hops? - ANSWER-The demand for hops will decrease.
The supply of a good is determined by: - ANSWER-sellers of the good present in the
market
Some of the determinants of demand are: - ANSWER-price, price of compliments and
tastes/preferences.
If producers of a certain product are pessimistic or uncertain about the future
business climate, how will the supply of the product behave? - ANSWER--TRY This
expectation will affect future supply but not today's supply
-NOT This expectation will cause movement along the supply curve.
