Econ Final Exam Answers Correct
Questions And Answers
Which of the following is an example of using physical capital to save time and money?
Correct Answers Building extra space in a factory to simplify production.
Every decision involves tradeoffs because what? Correct Answers Everyone's
resources are limited
Production possibilities curve shows the relationship between the production of...
Correct Answers Any two categories of goods
An economy that is producing the maximum amount of goods and services is
considered... Correct Answers Efficient
A music store holds a one day half price sale on all CDs, consumers react to the sale by
buying more CDs than on a typical day, this action is an example of what? Correct
Answers Law of Demand
The graph shows how many schools and new roads the city can build by using all of its
factor resources, what does the production possibilities curve show? Correct Answers
As the number of schools increase, roads decrease
A regions production possibilities curve might show underutilization of resources if the
region experienced what? Correct Answers A large flood
Which of the following is an example of a firm trying to increase its human capital?
Correct Answers Paying for employees' education
The community of Desertville traditionally produces a large number of tires and a small
amount of kiwi fruit, kiwi's are becoming increasingly popular. Desertville has decided to
expand kiwi cultivation and decrease tire manufacturing, according to the law of
increasing costs... Correct Answers Opportunity cost of producing kiwi's will increase
Each society answers the three basic economic questions based on what? Correct
Answers Its unique combination of values and goals
Which of the following best describes the physical flow from households to firms?
Correct Answers Labor and land
Money flowing to the government from firms and households in a mixed economy is
what? Correct Answers Taxes
, Which of the following is a summary of the basic economic questions? Correct Answers
What goods and services should be produced, how and for whom?
Which of the following is a main incentive for manufacturers to sell a product? Correct
Answers Making a profit on sales
A country is changing from a centrally planned economy to a free market economy,
what will be one difficulty for citizens in this country? Correct Answers Workers will lose
job security and guaranteed income
What is considered a negative effect of government regulation? Correct Answers It is
expensive for businesses to follow all the rules
You read an article in a news magazine that explains how the economy expanded for
several years, then went in to a period of contraction, what is the main subject of this
article? Correct Answers The business cycle
Jeff and Margret qualify for section eight housing, a subsidized housing program
administered by the federal government, what kind of benefit are they receiving?
Correct Answers In-kind
Which of the following is a characteristic of a public good? Correct Answers Its shared
by public but is provided by the government
How can the demand for one good be effected by increased demand for another one?
Correct Answers If goods are used together, increased demand for one increases
demand for the other
Economists say that demand curve is accurate only as long as the ceteris paribus
assumption is true, means that what? Correct Answers All things other than price hold
constant
Businesses often use information such as age, income and occupation to sell products
to certain groups of people, this technique is called what? Correct Answers
Demographics
Price of cranberry juice suddenly increases and as a result Glenda begins drinking more
Grape juice, which is less expensive but tastes just as good to her, in this case Glenda's
elastic demand is due to? Correct Answers Availability of substitutes
The store owners notice that demand for all types of bread has been dropping steadily
over the past year, while price changed very little, what two conditions might you be
seeing? Correct Answers A change in demand due to a popular low carb diet
A supply schedule is characterized by which of the following? Correct Answers It lists
supply for a specific good
Questions And Answers
Which of the following is an example of using physical capital to save time and money?
Correct Answers Building extra space in a factory to simplify production.
Every decision involves tradeoffs because what? Correct Answers Everyone's
resources are limited
Production possibilities curve shows the relationship between the production of...
Correct Answers Any two categories of goods
An economy that is producing the maximum amount of goods and services is
considered... Correct Answers Efficient
A music store holds a one day half price sale on all CDs, consumers react to the sale by
buying more CDs than on a typical day, this action is an example of what? Correct
Answers Law of Demand
The graph shows how many schools and new roads the city can build by using all of its
factor resources, what does the production possibilities curve show? Correct Answers
As the number of schools increase, roads decrease
A regions production possibilities curve might show underutilization of resources if the
region experienced what? Correct Answers A large flood
Which of the following is an example of a firm trying to increase its human capital?
Correct Answers Paying for employees' education
The community of Desertville traditionally produces a large number of tires and a small
amount of kiwi fruit, kiwi's are becoming increasingly popular. Desertville has decided to
expand kiwi cultivation and decrease tire manufacturing, according to the law of
increasing costs... Correct Answers Opportunity cost of producing kiwi's will increase
Each society answers the three basic economic questions based on what? Correct
Answers Its unique combination of values and goals
Which of the following best describes the physical flow from households to firms?
Correct Answers Labor and land
Money flowing to the government from firms and households in a mixed economy is
what? Correct Answers Taxes
, Which of the following is a summary of the basic economic questions? Correct Answers
What goods and services should be produced, how and for whom?
Which of the following is a main incentive for manufacturers to sell a product? Correct
Answers Making a profit on sales
A country is changing from a centrally planned economy to a free market economy,
what will be one difficulty for citizens in this country? Correct Answers Workers will lose
job security and guaranteed income
What is considered a negative effect of government regulation? Correct Answers It is
expensive for businesses to follow all the rules
You read an article in a news magazine that explains how the economy expanded for
several years, then went in to a period of contraction, what is the main subject of this
article? Correct Answers The business cycle
Jeff and Margret qualify for section eight housing, a subsidized housing program
administered by the federal government, what kind of benefit are they receiving?
Correct Answers In-kind
Which of the following is a characteristic of a public good? Correct Answers Its shared
by public but is provided by the government
How can the demand for one good be effected by increased demand for another one?
Correct Answers If goods are used together, increased demand for one increases
demand for the other
Economists say that demand curve is accurate only as long as the ceteris paribus
assumption is true, means that what? Correct Answers All things other than price hold
constant
Businesses often use information such as age, income and occupation to sell products
to certain groups of people, this technique is called what? Correct Answers
Demographics
Price of cranberry juice suddenly increases and as a result Glenda begins drinking more
Grape juice, which is less expensive but tastes just as good to her, in this case Glenda's
elastic demand is due to? Correct Answers Availability of substitutes
The store owners notice that demand for all types of bread has been dropping steadily
over the past year, while price changed very little, what two conditions might you be
seeing? Correct Answers A change in demand due to a popular low carb diet
A supply schedule is characterized by which of the following? Correct Answers It lists
supply for a specific good
