Principles of Microeconomics Exam
Questions With 100% Pass
The statement "Unemployment should be below 6 percent" is - CORRECT
ANSWER-a normative statement.
From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the
symphony. Suppose that Sam decides to attend the hockey match and thinks to
herself that if she did not go to the match she would go to the symphony. Then
the opportunity cost of attending the hockey match is - CORRECT ANSWER-
going to the symphony.
Resource use is allocatively efficient if the - CORRECT ANSWER-marginal cost
of what the resource produces is equal to the marginal benefit of what is produced.
Most students attending college pay tuition and are unable to hold a full-time job.
For these students, tuition is - CORRECT ANSWER-part of the opportunity cost
of going to college. So are their forgone earnings from not holding a full-time job.
In economics, positive statements are about - CORRECT ANSWER-the way
things are.
,Capital accumulation definitely - CORRECT ANSWER-shifts the production
possibilities frontier outward.
The most anyone is willing to pay for another purse is $30. Currently the price of a
purse is $40, and the cost of producing another purse is $50. The marginal benefit
of a purse is - CORRECT ANSWER-$30.
Your employer has asked you to start working overtime and has offered to pay $18
per hour for every hour you work beyond forty hours a week. The wage rate for
each of the first forty hours will continue to be the usual $15 per hour. In terms of
dollars, what is the marginal benefit of working each hour of overtime? -
CORRECT ANSWER-$18.00
Which of the following describes comparative advantage? - CORRECT
ANSWER-To produce a bushel of wheat Farmer John must give up 2 bushels of
corn whereas Farmer Ben must give up 3 bushels of corn.
The principle of decreasing marginal benefit means that as the quantity of a good
consumed - CORRECT ANSWER-increases, its marginal benefit decreases.
According to economists, - CORRECT ANSWER-market capitalism is the best
system available and some government intervention and regulation can either help
or harm the social interest.
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,Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per
year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of
pears per year. Which of the following statements is true? - CORRECT
ANSWER-Washington has an absolute advantage in the production of both
pecans and pears.
Suppose Joe can prepare 20 sandwiches or 10 pizzas in an hour and Beth can
produce 36 sandwiches or 27 pizzas. The concept of comparative advantage
concludes that - CORRECT ANSWER-Beth should produce pizza and Joe should
produce sandwiches.
Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. Zeb can catch
30 pounds of fish an hour or pick 20 pounds of fruit. The opportunity cost of fish
is ________ for Abe than for Zeb, and the opportunity cost of fruit is ________
for Abe than for Zeb. - CORRECT ANSWER-higher; lower
A person has a comparative advantage in producing a particular good if that
person - CORRECT ANSWER-can produce it at lower opportunity cost than
anyone else can.
When an economist talks of scarcity, the economist is referring to the -
CORRECT ANSWER-inability of society to satisfy all human wants because of
limited resources.
A good economic model - CORRECT ANSWER-includes only those features of
the world that are needed for the purpose at hand
, A positive relationship exists between two variables if - CORRECT ANSWER-a
reduction in one variable is associated with a decrease in the other variable.
The opportunity cost of something you decide to get is - CORRECT ANSWER-
the highest valued alternative you give up to get it.
If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is
answering the ________ part of one of the two big economic questions. -
CORRECT ANSWER-when
Which of the following is NOT true concerning a society's production possibilities
frontier (PPF)? - CORRECT ANSWER-Consumers will receive equal benefits
from the two goods illustrated in the PPF.
"OPEC should supply more oil so that the world's economies can grow more
rapidly." This is an example of - CORRECT ANSWER-a normative statement.
Which of the following is NOT a factor of production? - CORRECT ANSWER-
175 shares of Microsoft stock
Dell Computers decides to produce PCs and sell them directly over the Internet
and via Best Buy. This is an example of - CORRECT ANSWER-a microeconomic
decision.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Questions With 100% Pass
The statement "Unemployment should be below 6 percent" is - CORRECT
ANSWER-a normative statement.
From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the
symphony. Suppose that Sam decides to attend the hockey match and thinks to
herself that if she did not go to the match she would go to the symphony. Then
the opportunity cost of attending the hockey match is - CORRECT ANSWER-
going to the symphony.
Resource use is allocatively efficient if the - CORRECT ANSWER-marginal cost
of what the resource produces is equal to the marginal benefit of what is produced.
Most students attending college pay tuition and are unable to hold a full-time job.
For these students, tuition is - CORRECT ANSWER-part of the opportunity cost
of going to college. So are their forgone earnings from not holding a full-time job.
In economics, positive statements are about - CORRECT ANSWER-the way
things are.
,Capital accumulation definitely - CORRECT ANSWER-shifts the production
possibilities frontier outward.
The most anyone is willing to pay for another purse is $30. Currently the price of a
purse is $40, and the cost of producing another purse is $50. The marginal benefit
of a purse is - CORRECT ANSWER-$30.
Your employer has asked you to start working overtime and has offered to pay $18
per hour for every hour you work beyond forty hours a week. The wage rate for
each of the first forty hours will continue to be the usual $15 per hour. In terms of
dollars, what is the marginal benefit of working each hour of overtime? -
CORRECT ANSWER-$18.00
Which of the following describes comparative advantage? - CORRECT
ANSWER-To produce a bushel of wheat Farmer John must give up 2 bushels of
corn whereas Farmer Ben must give up 3 bushels of corn.
The principle of decreasing marginal benefit means that as the quantity of a good
consumed - CORRECT ANSWER-increases, its marginal benefit decreases.
According to economists, - CORRECT ANSWER-market capitalism is the best
system available and some government intervention and regulation can either help
or harm the social interest.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
,Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per
year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of
pears per year. Which of the following statements is true? - CORRECT
ANSWER-Washington has an absolute advantage in the production of both
pecans and pears.
Suppose Joe can prepare 20 sandwiches or 10 pizzas in an hour and Beth can
produce 36 sandwiches or 27 pizzas. The concept of comparative advantage
concludes that - CORRECT ANSWER-Beth should produce pizza and Joe should
produce sandwiches.
Abe can catch 10 pounds of fish an hour or pick 10 pounds of fruit. Zeb can catch
30 pounds of fish an hour or pick 20 pounds of fruit. The opportunity cost of fish
is ________ for Abe than for Zeb, and the opportunity cost of fruit is ________
for Abe than for Zeb. - CORRECT ANSWER-higher; lower
A person has a comparative advantage in producing a particular good if that
person - CORRECT ANSWER-can produce it at lower opportunity cost than
anyone else can.
When an economist talks of scarcity, the economist is referring to the -
CORRECT ANSWER-inability of society to satisfy all human wants because of
limited resources.
A good economic model - CORRECT ANSWER-includes only those features of
the world that are needed for the purpose at hand
, A positive relationship exists between two variables if - CORRECT ANSWER-a
reduction in one variable is associated with a decrease in the other variable.
The opportunity cost of something you decide to get is - CORRECT ANSWER-
the highest valued alternative you give up to get it.
If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is
answering the ________ part of one of the two big economic questions. -
CORRECT ANSWER-when
Which of the following is NOT true concerning a society's production possibilities
frontier (PPF)? - CORRECT ANSWER-Consumers will receive equal benefits
from the two goods illustrated in the PPF.
"OPEC should supply more oil so that the world's economies can grow more
rapidly." This is an example of - CORRECT ANSWER-a normative statement.
Which of the following is NOT a factor of production? - CORRECT ANSWER-
175 shares of Microsoft stock
Dell Computers decides to produce PCs and sell them directly over the Internet
and via Best Buy. This is an example of - CORRECT ANSWER-a microeconomic
decision.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
