Econ final review Questions And
Answers
how does the addition of the fifth worker the number of beanbags
produced per hour? - it increases production by 5 beanbags
according to the table, what number of beanbags per hour would be
the best level of production from a firms's point of view? why? - 10
bean bags per hour; profit is at its highest level
at what point should the owners of a failing factory shut it down? -
when revenue per hour is lower than operating cost per hour
when warfare cut off some of the supply of a rare metal used in
making cellphones, one firm's marginal cost rose higher than its
marginal revenue. which of the following events in the graph is the
most likely result of this event? - the shift of the supply curve to the
left
how would a new government subsidy for rice farmers affect the
marker for rice? - it would increase the supply by decreasing rice
farmers' production costs
based on the graphs, which of the following best describes
equilibrium? - the point at which the demand and supply both equal
200
which of the following best explains how the situation shown in the
graph affects producers and consumers? - it benefits neither, because
consumers must pay more and producers must throw out excess
supply
,why would scarcity and choice most likely be basic economic
problems for all people? - because resources are always limited, and
people must make choices by prioritizing their needs over their wants.
how would scarcity and shortages most accurately be compared? -
scarcity always exists and is a problem faced by all societies, while
shortages are manageable.
as a factor of production, the instruction provided by a teacher is
considered what? - labor
Julie struggles to decide whether to attend Harvard University or
Rutgers University. She finds the prestige and networking
possibilities associated with Harvard exciting, but Rutgers has offered
her an exceptional financial package. she is using a grid to determine
which school to attend. what economic concept is Julie illustrating in
her decision making? - Julie must determine the opportunity cost of
choosing Harvard or Rutgers and decide which is most desirable for
her.
which of the following accurately fills in the missing entry in the
chart? - Opportunity cost
based on an examination of the graph, what conclusions can you draw
about the production possibilities of cell phones and laptops if the
output of each is at point b? - resources for both cell phones and
laptops are being underutilized, resulting in less economic growth
than is possible.
point b on the curve in the chart is referred to as what ? - the
production possibilities frontier
what do the arrows on the graph represent? - economic growth
free market economies and capitalist economies are also referred to as
what? - free enterprise systems
, in a free market system, the factors of production are owned by who?
- individuals and private businesses
" Give me that which I want, and you shall have this which you want
... it is in this manner that we obtain from another the far greater part
of those good [services] which we stand in need of. It is not from the
benevolence of the butcher, the brewer, or the baker that we expect
our dinner, but from their regard to their own interest." - Adam Smith,
the wealth of nations
the quotation emphasizes the role of which element or elements in
how markets function? - incentives and competition
which of the following individuals would be most involved in
answering the basic economic questions in a centrally planned
economy? - an official in a government agency
" Capitalist production... develops technology and the combining
together of various processes ... only by sapping the original sources
of wealth- the soil and the laborer." - Karl Marx, the communist
manifesto
the quotation reflects how communist economic systems are based on
what? - conflicts between capital and labor
critics of government intervention in the economy are most likely to
emphasize government's effect on what? - efficiency and
competitiveness
which of the following is true about scarcity? - scarcity affects all
societies
what trade-off is shown in this cartoon? - size of car v.s. fuel
efficiency
Answers
how does the addition of the fifth worker the number of beanbags
produced per hour? - it increases production by 5 beanbags
according to the table, what number of beanbags per hour would be
the best level of production from a firms's point of view? why? - 10
bean bags per hour; profit is at its highest level
at what point should the owners of a failing factory shut it down? -
when revenue per hour is lower than operating cost per hour
when warfare cut off some of the supply of a rare metal used in
making cellphones, one firm's marginal cost rose higher than its
marginal revenue. which of the following events in the graph is the
most likely result of this event? - the shift of the supply curve to the
left
how would a new government subsidy for rice farmers affect the
marker for rice? - it would increase the supply by decreasing rice
farmers' production costs
based on the graphs, which of the following best describes
equilibrium? - the point at which the demand and supply both equal
200
which of the following best explains how the situation shown in the
graph affects producers and consumers? - it benefits neither, because
consumers must pay more and producers must throw out excess
supply
,why would scarcity and choice most likely be basic economic
problems for all people? - because resources are always limited, and
people must make choices by prioritizing their needs over their wants.
how would scarcity and shortages most accurately be compared? -
scarcity always exists and is a problem faced by all societies, while
shortages are manageable.
as a factor of production, the instruction provided by a teacher is
considered what? - labor
Julie struggles to decide whether to attend Harvard University or
Rutgers University. She finds the prestige and networking
possibilities associated with Harvard exciting, but Rutgers has offered
her an exceptional financial package. she is using a grid to determine
which school to attend. what economic concept is Julie illustrating in
her decision making? - Julie must determine the opportunity cost of
choosing Harvard or Rutgers and decide which is most desirable for
her.
which of the following accurately fills in the missing entry in the
chart? - Opportunity cost
based on an examination of the graph, what conclusions can you draw
about the production possibilities of cell phones and laptops if the
output of each is at point b? - resources for both cell phones and
laptops are being underutilized, resulting in less economic growth
than is possible.
point b on the curve in the chart is referred to as what ? - the
production possibilities frontier
what do the arrows on the graph represent? - economic growth
free market economies and capitalist economies are also referred to as
what? - free enterprise systems
, in a free market system, the factors of production are owned by who?
- individuals and private businesses
" Give me that which I want, and you shall have this which you want
... it is in this manner that we obtain from another the far greater part
of those good [services] which we stand in need of. It is not from the
benevolence of the butcher, the brewer, or the baker that we expect
our dinner, but from their regard to their own interest." - Adam Smith,
the wealth of nations
the quotation emphasizes the role of which element or elements in
how markets function? - incentives and competition
which of the following individuals would be most involved in
answering the basic economic questions in a centrally planned
economy? - an official in a government agency
" Capitalist production... develops technology and the combining
together of various processes ... only by sapping the original sources
of wealth- the soil and the laborer." - Karl Marx, the communist
manifesto
the quotation reflects how communist economic systems are based on
what? - conflicts between capital and labor
critics of government intervention in the economy are most likely to
emphasize government's effect on what? - efficiency and
competitiveness
which of the following is true about scarcity? - scarcity affects all
societies
what trade-off is shown in this cartoon? - size of car v.s. fuel
efficiency
