ECON EXAM QUESTIONS & ANSWERS
What is economics?
A.) A study of how businesses and individuals make the most money.
B.) A study of how people make choices to achieve goals with resource constraints.
C.) A study of the institutional mechanisms of commerce, like trade and the stock
market.
D.) A study of comprehensive, international economic development. - Answers - B.) A
study of how people make choices to achieve goals with resource constraints
What is meant by "the invisible hand?"
A.) The "invisible hand" of government is essential for economic planning.
B.)The "invisible hand" is the force of corruption which limits economic development.
C.)The "invisible hand" means that the division of labor and exchange are directed by
an unseen authority which keeps everything well organized.
D.)The "invisible hand" means that the division of labor and exchange occur naturally
among people without being directed by anyone. - Answers - D.) The "invisible hand"
means that the division of labor and exchange occur naturally among people without
being directed by anyone
What is the root of exchange behavior?
A.) Human natural tendency toward self-sufficiency.
B.) Human natural tendency toward equivalent talents and skills.
C.) Human natural tendency toward division of labor to gain efficiency.
D.) Human natural tendency toward desiring international experiences. - Answers - D.)
Human natural tendency toward division of labor to gain efficiency.
Division of labor and exchange are human tendencies to enhance one's self-interest.
Can contributing to charities to assure everyone in one's community has access to food,
housing and health care be consistent with the principles of self-interest?
A.) Yes
B.) No - Answers - A.) Yes
What is scientific about Social Science?
A.) Human beings are animals, so the science of human decisions is part of biology.
B.) Social scientists have professional journals.
C.) Adam Smith was a physicist.
D.) Social scientists use the scientific method to test hypotheses about human behavior.
- Answers - D.) Social scientists use the scientific method to test hypotheses about
human behavior.
What is the contribution of The Wealth of Nations published by Adam Smith in 1776?
A.) Adam Smith described how people made production and consumption decisions in
the 18th Century.
B.) Adam Smith created capitalism.
, C.) Adam Smith was an English warrior who led the English people to freedom from a
king.
D.) Adam Smith was a landowner and trade protectionist who drafted the "corn laws." -
Answers - A.) Adam Smith described how people made production and consumption
decisions in the 18th Century
What is a market as discussed in an economics class?
A.) A grocery store.
B.) The stock market.
C.) The coming together of suppliers and demanders of goods and services.
D.) A place where exchange occurs. - Answers - C.) The coming together of suppliers
and demanders of goods and services
What do consumers want to achieve?
A.) Maximize personal satisfaction.
B.) Take care of their children and families.
C.) Assure that poor people are fed, housed, and clothed.
D.) All of the above. - Answers - D.) All of the above
As the price of gasoline continues to rise,
A.) The quantity consumed will not change because everyone must travel.
B.) The quantity consumed will decline as consumers respond to higher prices.
C.) The quantity consumed will rise because consumers will need more gasoline for
their bigger cars.
D.) The quantity consumed will rise because producers will produce more gasoline. -
Answers - B.) The quantity consumed will decline as consumers respond to higher
prices.
Why would producers offer more of a product as price rises?
A.) Because some inefficient, high-cost producers can enter the market at high prices.
B.) Because producers can justify using more expensive inputs when product prices are
high.
C.) Because producers are willing to work overtime when prices are good.
D.) All of the above. - Answers - D.) All of the above
What is the principal communication device between producers and consumers in a free
market?
A.) The telephone.
B.) Price.
C.) Brokers.
D.) Politics. - Answers - B.) Price
From an economic perspective, a choice is:
A.) A decision that can be made because we have resources.
B.) A decision no one wants to make because they do not have enough resources.
C.) A decision that must be made because resources are scarce.
What is economics?
A.) A study of how businesses and individuals make the most money.
B.) A study of how people make choices to achieve goals with resource constraints.
C.) A study of the institutional mechanisms of commerce, like trade and the stock
market.
D.) A study of comprehensive, international economic development. - Answers - B.) A
study of how people make choices to achieve goals with resource constraints
What is meant by "the invisible hand?"
A.) The "invisible hand" of government is essential for economic planning.
B.)The "invisible hand" is the force of corruption which limits economic development.
C.)The "invisible hand" means that the division of labor and exchange are directed by
an unseen authority which keeps everything well organized.
D.)The "invisible hand" means that the division of labor and exchange occur naturally
among people without being directed by anyone. - Answers - D.) The "invisible hand"
means that the division of labor and exchange occur naturally among people without
being directed by anyone
What is the root of exchange behavior?
A.) Human natural tendency toward self-sufficiency.
B.) Human natural tendency toward equivalent talents and skills.
C.) Human natural tendency toward division of labor to gain efficiency.
D.) Human natural tendency toward desiring international experiences. - Answers - D.)
Human natural tendency toward division of labor to gain efficiency.
Division of labor and exchange are human tendencies to enhance one's self-interest.
Can contributing to charities to assure everyone in one's community has access to food,
housing and health care be consistent with the principles of self-interest?
A.) Yes
B.) No - Answers - A.) Yes
What is scientific about Social Science?
A.) Human beings are animals, so the science of human decisions is part of biology.
B.) Social scientists have professional journals.
C.) Adam Smith was a physicist.
D.) Social scientists use the scientific method to test hypotheses about human behavior.
- Answers - D.) Social scientists use the scientific method to test hypotheses about
human behavior.
What is the contribution of The Wealth of Nations published by Adam Smith in 1776?
A.) Adam Smith described how people made production and consumption decisions in
the 18th Century.
B.) Adam Smith created capitalism.
, C.) Adam Smith was an English warrior who led the English people to freedom from a
king.
D.) Adam Smith was a landowner and trade protectionist who drafted the "corn laws." -
Answers - A.) Adam Smith described how people made production and consumption
decisions in the 18th Century
What is a market as discussed in an economics class?
A.) A grocery store.
B.) The stock market.
C.) The coming together of suppliers and demanders of goods and services.
D.) A place where exchange occurs. - Answers - C.) The coming together of suppliers
and demanders of goods and services
What do consumers want to achieve?
A.) Maximize personal satisfaction.
B.) Take care of their children and families.
C.) Assure that poor people are fed, housed, and clothed.
D.) All of the above. - Answers - D.) All of the above
As the price of gasoline continues to rise,
A.) The quantity consumed will not change because everyone must travel.
B.) The quantity consumed will decline as consumers respond to higher prices.
C.) The quantity consumed will rise because consumers will need more gasoline for
their bigger cars.
D.) The quantity consumed will rise because producers will produce more gasoline. -
Answers - B.) The quantity consumed will decline as consumers respond to higher
prices.
Why would producers offer more of a product as price rises?
A.) Because some inefficient, high-cost producers can enter the market at high prices.
B.) Because producers can justify using more expensive inputs when product prices are
high.
C.) Because producers are willing to work overtime when prices are good.
D.) All of the above. - Answers - D.) All of the above
What is the principal communication device between producers and consumers in a free
market?
A.) The telephone.
B.) Price.
C.) Brokers.
D.) Politics. - Answers - B.) Price
From an economic perspective, a choice is:
A.) A decision that can be made because we have resources.
B.) A decision no one wants to make because they do not have enough resources.
C.) A decision that must be made because resources are scarce.
