ECON 2020 WEEK 3 EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS
Economics is the study of:
scarcity in choices
The man who is considered the "father of economics":
Adam Smith
A market in which gasoline is illegally bought and sold at prices above the legal limit is a:
Black Market
This is a maximum legal price in the marketplace:
price ceiling
Draw and label all elements of the "Supply-demand" graph:
As prices rise, the quantity supplied rises; as prices fall, the quantity supplied falls. This is
called the:
law of supply
This is a good which is used together with another good:
complementary good
Products whose demand varies directly with money income are called Superior Goods or:
normal goods
Adam Smith never took a course in economics. Nobody did. Until the 19th century,
economics was considered a branch of:
philosophy
This, according to Smith, is the great cause of the increase of public opulence:
division of labor
, One University Professor was actually "silly" enough to disagree with Ricardo. He was:
Malthus
David Ricardo won a seat in the British House of Commons, where his high-pitched voice
rang out for political freedoms and:
free trade
Ricardo showed that people in countries should specialize in whatever leads them to give
up the least. This is their:
comparative advantage
This group, founded by Quesnay, presented some rather simple ideas in inscrutable
language and a mysterious chat:
Physiocrats
Ricardo cheerfully declared before Parliament that "England would be a very happy place,
if they got rid of these two evils":
Corn Laws and National debt
To understand Ricardo's game plan, we must open the program and identify the players.
First and most plentiful are:
workers
According to Smith, this merely symbolizes the true orchestration of social harmony, the
free market and it becomes the transparent symbol of Smith's economic:
invisible hand
The second Big Mac will yield less satisfaction to the consumer than the first, and the third
still less than the second. That is, consumption is subject to:
diminishing marginal utility
This indicates that a lower price increases the purchasing power of a buyer's money
income, enabling the buyer to purchase more of the product than before:
WITH DETAILED VERIFIED ANSWERS
Economics is the study of:
scarcity in choices
The man who is considered the "father of economics":
Adam Smith
A market in which gasoline is illegally bought and sold at prices above the legal limit is a:
Black Market
This is a maximum legal price in the marketplace:
price ceiling
Draw and label all elements of the "Supply-demand" graph:
As prices rise, the quantity supplied rises; as prices fall, the quantity supplied falls. This is
called the:
law of supply
This is a good which is used together with another good:
complementary good
Products whose demand varies directly with money income are called Superior Goods or:
normal goods
Adam Smith never took a course in economics. Nobody did. Until the 19th century,
economics was considered a branch of:
philosophy
This, according to Smith, is the great cause of the increase of public opulence:
division of labor
, One University Professor was actually "silly" enough to disagree with Ricardo. He was:
Malthus
David Ricardo won a seat in the British House of Commons, where his high-pitched voice
rang out for political freedoms and:
free trade
Ricardo showed that people in countries should specialize in whatever leads them to give
up the least. This is their:
comparative advantage
This group, founded by Quesnay, presented some rather simple ideas in inscrutable
language and a mysterious chat:
Physiocrats
Ricardo cheerfully declared before Parliament that "England would be a very happy place,
if they got rid of these two evils":
Corn Laws and National debt
To understand Ricardo's game plan, we must open the program and identify the players.
First and most plentiful are:
workers
According to Smith, this merely symbolizes the true orchestration of social harmony, the
free market and it becomes the transparent symbol of Smith's economic:
invisible hand
The second Big Mac will yield less satisfaction to the consumer than the first, and the third
still less than the second. That is, consumption is subject to:
diminishing marginal utility
This indicates that a lower price increases the purchasing power of a buyer's money
income, enabling the buyer to purchase more of the product than before:
