Econ 111 Exam 1 questions well
answered
which of the following situations represents an economic problem - correct answer ✔✔both
situations are examples of economic problem
Tyrone has 3 options on how to spend his Saturday afternoon: to go out with his friends, watch
a movie, or wash his car. Tyrone's opportunity cost of washing his car: - correct answer ✔✔the
value of going out with his friends or watching a movie
suppose you have the choice between studying one more hour for your history exam or
studying for one more hour of your psychology exam. Your decision should be based on: -
correct answer ✔✔the additional benefits of studying for each class
suppose you and your roommate have the following agreement when it comes to cleaning the
apartment: each person washes his or her own dishes after each meal. The principle of trade
you just learned tells you it would be more efficient if: - correct answer ✔✔one of you washes
all of the dishes and the other does a different chore
If the quantity demanded of sunglasses decreases by 2% when average incomes fall by 10%,
then we know that sunglasses are - correct answer ✔✔normal good
Lorena considers coffee and tea to be substitutes. Therefore, the cross elasticity, also known as
cross price elasticity, of demand between coffee and tea for Lorena must be: - correct answer
✔✔positive
Which of the following goods probably has the highest price elasticity of supply? - correct
answer ✔✔blue pencils
,If the quantity of personal computers increases by 5% every time the. price of a personal
computer decreases by 10%, the price elasticity of personal computers is: - correct answer
✔✔0.5
You sell T-shirts in the street corner in order to support some. of you tuition costs. Around the
middle of the semester, your friend Carlos gives you advice: "if you increase the price of each
shirt you sell you will be able to make a lot more money." for Carlos to be right, the price
elasticity of t-shirts must be price: - correct answer ✔✔inelastic
which of the following diagrams represent the good with the most price inelastic demand? -
correct answer ✔✔the steeper the demand curve, the more inelastic is its demand
which of the following explains why local restaurants provide better customer service than cable
companies? - correct answer ✔✔Incentives
Conditions on board ships carrying prisoners from England to Australia in the 18th century
improved only after: - correct answer ✔✔sea captains were given an incentive to improve
conditions
the problem of the shockingly high death rate among British prisoners en route to Australia was
solved by: - correct answer ✔✔economist
When British sea captains were paid for ________ instead of being paid for __________, the
survival rate of prisoners improved dramatically - correct answer ✔✔the number of prisoners
who arrived alive; the number of prisoners who embarked for Australia
The survival rate among British prisoners being shipped to Australia to _______ as a result of
changing the incentives of the ships' captains - correct answer ✔✔99%
The British ship captains responded to the new payment system because: - correct answer
✔✔they responded to incentives
, the solution to the problem of the British prisoner ships discussed in the video worked in large
part because it: - correct answer ✔✔aligned the best interest of the sea captains with the best
interest of society
can learning economics help you manage your money and invest in the stock market - correct
answer ✔✔Yes, but there is much more to economics than that
how is economics defined in the video - correct answer ✔✔the study of human action
which of the following is NOT mentioned in the video as something to be gained from studying
economics? - correct answer ✔✔A rewarding career as an economist or statistician
A headline in the New York times read:"Study Finds Enrollment Is Up at Colleges Despite
Recessions." How would you rewrite the headline now that you understand the idea of
opportunity cost? - correct answer ✔✔"Study Finds Enrollment Is Up at Colleges _Because of_
Recession."
When bad weather in India destroys the crop, does this sound like a fall in the total "supply" of
crops or a fallen people's "demand" for crops? - correct answer ✔✔Supply
How much did national output fall during the Great Depression? According to the chapter,
which government agency might have. helped to avoid much of the Great Depression had it
acted more quickly and appropriately? - correct answer ✔✔Output. fell by about 30%
The Federal Reserve might have been able to limit the damage with more appropriate policies
The chapter lists four things entrepreneurs save and invest in. Which of the four are actual
objects, and which are more intangible, like concepts or ideas or plans? - correct answer
✔✔Objects: Physical Capital
Intangibles: Human capital, efficient organization, innovation
answered
which of the following situations represents an economic problem - correct answer ✔✔both
situations are examples of economic problem
Tyrone has 3 options on how to spend his Saturday afternoon: to go out with his friends, watch
a movie, or wash his car. Tyrone's opportunity cost of washing his car: - correct answer ✔✔the
value of going out with his friends or watching a movie
suppose you have the choice between studying one more hour for your history exam or
studying for one more hour of your psychology exam. Your decision should be based on: -
correct answer ✔✔the additional benefits of studying for each class
suppose you and your roommate have the following agreement when it comes to cleaning the
apartment: each person washes his or her own dishes after each meal. The principle of trade
you just learned tells you it would be more efficient if: - correct answer ✔✔one of you washes
all of the dishes and the other does a different chore
If the quantity demanded of sunglasses decreases by 2% when average incomes fall by 10%,
then we know that sunglasses are - correct answer ✔✔normal good
Lorena considers coffee and tea to be substitutes. Therefore, the cross elasticity, also known as
cross price elasticity, of demand between coffee and tea for Lorena must be: - correct answer
✔✔positive
Which of the following goods probably has the highest price elasticity of supply? - correct
answer ✔✔blue pencils
,If the quantity of personal computers increases by 5% every time the. price of a personal
computer decreases by 10%, the price elasticity of personal computers is: - correct answer
✔✔0.5
You sell T-shirts in the street corner in order to support some. of you tuition costs. Around the
middle of the semester, your friend Carlos gives you advice: "if you increase the price of each
shirt you sell you will be able to make a lot more money." for Carlos to be right, the price
elasticity of t-shirts must be price: - correct answer ✔✔inelastic
which of the following diagrams represent the good with the most price inelastic demand? -
correct answer ✔✔the steeper the demand curve, the more inelastic is its demand
which of the following explains why local restaurants provide better customer service than cable
companies? - correct answer ✔✔Incentives
Conditions on board ships carrying prisoners from England to Australia in the 18th century
improved only after: - correct answer ✔✔sea captains were given an incentive to improve
conditions
the problem of the shockingly high death rate among British prisoners en route to Australia was
solved by: - correct answer ✔✔economist
When British sea captains were paid for ________ instead of being paid for __________, the
survival rate of prisoners improved dramatically - correct answer ✔✔the number of prisoners
who arrived alive; the number of prisoners who embarked for Australia
The survival rate among British prisoners being shipped to Australia to _______ as a result of
changing the incentives of the ships' captains - correct answer ✔✔99%
The British ship captains responded to the new payment system because: - correct answer
✔✔they responded to incentives
, the solution to the problem of the British prisoner ships discussed in the video worked in large
part because it: - correct answer ✔✔aligned the best interest of the sea captains with the best
interest of society
can learning economics help you manage your money and invest in the stock market - correct
answer ✔✔Yes, but there is much more to economics than that
how is economics defined in the video - correct answer ✔✔the study of human action
which of the following is NOT mentioned in the video as something to be gained from studying
economics? - correct answer ✔✔A rewarding career as an economist or statistician
A headline in the New York times read:"Study Finds Enrollment Is Up at Colleges Despite
Recessions." How would you rewrite the headline now that you understand the idea of
opportunity cost? - correct answer ✔✔"Study Finds Enrollment Is Up at Colleges _Because of_
Recession."
When bad weather in India destroys the crop, does this sound like a fall in the total "supply" of
crops or a fallen people's "demand" for crops? - correct answer ✔✔Supply
How much did national output fall during the Great Depression? According to the chapter,
which government agency might have. helped to avoid much of the Great Depression had it
acted more quickly and appropriately? - correct answer ✔✔Output. fell by about 30%
The Federal Reserve might have been able to limit the damage with more appropriate policies
The chapter lists four things entrepreneurs save and invest in. Which of the four are actual
objects, and which are more intangible, like concepts or ideas or plans? - correct answer
✔✔Objects: Physical Capital
Intangibles: Human capital, efficient organization, innovation
