Exam Review
1. WRONG - What is economics the study of?
How society manages its scarce resources.
2. WRONG - What is the main reason why households and societies face so many
decisions?
Resources are scarce
3. WRONG - Which of the following is an example of something economist study?
Overtime work, Ryan sells textbook, Unemployment rate.
4. – A trade-off exists between a clean environment and a higher level of income in the
sense that?
A. Studies show what individuals with higher levels of income pollute less than low-income
individuals.
B. Efforts to reduce pollution typically are not completely successful.
C. Laws that reduce pollution raise costs of production and reduce incomes.
D. Employing individuals to clean up pollution causes increases in employment and income.
5. – What is the opportunity cost of an item?
A. The number of hours needed to earn money to buy the item.
B. What you give up in order to get that item.
C. Usually less than the dollar or euro value of the item.
D. The dollar or euro value of the item.
6. – No question..
7. – After much consideration, you have chosen Ireland over Spain for you study Abroad
program next year. However, the deadline for you final decision is still months away and you
may reverse this decision. Which of the following events would prompt you to reverse this
decision?
A. The marginal benefit of going to Spain increases.
B. The marginal cost of going to Spain increases.
C. The marginal benefit of going to Ireland increases.
D. The marginal cost of going to Ireland decreases.
8. Laws requiring that drivers wear seat belts have resulted in?
A. A reduction in both driver deaths and pedestrian deaths.
B. Fewer accidents and fewer deaths per accident.
C. Fewer driver deaths, fewer accidents and fewer pedestrian deaths.
D. Little change in the number of driver deaths, but more accidents and more pedestrian
deaths.
9. – What are factors of Production?
A. The mathematical calculations firms make in determining their optimal production levels.
B. Social and political conditions that affect production.
C. The physical relationships between economic inputs and outputs.
D. Inputs into the production process.
, 10. – In the early 19th century, the Russian government sent doctors to southern Russian
villages to provide assistance during a cholera epidemic. The villages noticed that wherever
doctors appeared, people died. Therefore, many doctors where chased away from villages,
and some were even killed. This reaction to the correlation between doctors and deaths is
most likely a problem of.
A. Omitted variables.
B. Post hoc ergo propter hoc.
C. Government prop-agenda. Economic
D. Medical incompetence.
11. – In a market economy, what do supply and demand determine?
A. Both the quantity of each good produced and the price at which it is sold.
B. The quantity of each good produced but not the price at which it is sold.
C. The price at which each good is sold but not the quantity of each good produced.
D. Neither the quantity of each good produced nor the price at which it is sold.
12. – A demand curve shows the relationship between?
A. Between income and quantity demanded.
B. Between price and income.
C. Between price and quantity demanded.
D. -
13. – Which of the following is not held constant when looking at an individual’s demand
curve?
A. Income.
B. Price.
C. Preferences.
D. The availability of alternative goods.
14. – When studying how some events or policy affects a market, what does elasticity
provide information on?
A. Government expenditures associated with the policy.
B. Costs and benefits of the effect.
C. Allocative efficiency of the effect.
D. Direction and size of the effect.
15. – When consumers face rising gasoline prices, they typically?
A. Reduce their quantity demanded more in the long run than in the short run.
B. Reduce their quantity demanded more in the short run than in the long run.
C. Do not reduce their quantity demanded in the short run or the long run.
D. Increase their quantity demanded in the short run but reduce their quantity demanded in
the long run.
16. – What does the price elasticity of demand measure?
A. By how much quantity demanded responds to change in price.
B. By how much quantity demanded responds to change in income.
C. By how much quantity price responds to a change in demand.
D. By how much quantity demand responds to change in supply.
1. WRONG - What is economics the study of?
How society manages its scarce resources.
2. WRONG - What is the main reason why households and societies face so many
decisions?
Resources are scarce
3. WRONG - Which of the following is an example of something economist study?
Overtime work, Ryan sells textbook, Unemployment rate.
4. – A trade-off exists between a clean environment and a higher level of income in the
sense that?
A. Studies show what individuals with higher levels of income pollute less than low-income
individuals.
B. Efforts to reduce pollution typically are not completely successful.
C. Laws that reduce pollution raise costs of production and reduce incomes.
D. Employing individuals to clean up pollution causes increases in employment and income.
5. – What is the opportunity cost of an item?
A. The number of hours needed to earn money to buy the item.
B. What you give up in order to get that item.
C. Usually less than the dollar or euro value of the item.
D. The dollar or euro value of the item.
6. – No question..
7. – After much consideration, you have chosen Ireland over Spain for you study Abroad
program next year. However, the deadline for you final decision is still months away and you
may reverse this decision. Which of the following events would prompt you to reverse this
decision?
A. The marginal benefit of going to Spain increases.
B. The marginal cost of going to Spain increases.
C. The marginal benefit of going to Ireland increases.
D. The marginal cost of going to Ireland decreases.
8. Laws requiring that drivers wear seat belts have resulted in?
A. A reduction in both driver deaths and pedestrian deaths.
B. Fewer accidents and fewer deaths per accident.
C. Fewer driver deaths, fewer accidents and fewer pedestrian deaths.
D. Little change in the number of driver deaths, but more accidents and more pedestrian
deaths.
9. – What are factors of Production?
A. The mathematical calculations firms make in determining their optimal production levels.
B. Social and political conditions that affect production.
C. The physical relationships between economic inputs and outputs.
D. Inputs into the production process.
, 10. – In the early 19th century, the Russian government sent doctors to southern Russian
villages to provide assistance during a cholera epidemic. The villages noticed that wherever
doctors appeared, people died. Therefore, many doctors where chased away from villages,
and some were even killed. This reaction to the correlation between doctors and deaths is
most likely a problem of.
A. Omitted variables.
B. Post hoc ergo propter hoc.
C. Government prop-agenda. Economic
D. Medical incompetence.
11. – In a market economy, what do supply and demand determine?
A. Both the quantity of each good produced and the price at which it is sold.
B. The quantity of each good produced but not the price at which it is sold.
C. The price at which each good is sold but not the quantity of each good produced.
D. Neither the quantity of each good produced nor the price at which it is sold.
12. – A demand curve shows the relationship between?
A. Between income and quantity demanded.
B. Between price and income.
C. Between price and quantity demanded.
D. -
13. – Which of the following is not held constant when looking at an individual’s demand
curve?
A. Income.
B. Price.
C. Preferences.
D. The availability of alternative goods.
14. – When studying how some events or policy affects a market, what does elasticity
provide information on?
A. Government expenditures associated with the policy.
B. Costs and benefits of the effect.
C. Allocative efficiency of the effect.
D. Direction and size of the effect.
15. – When consumers face rising gasoline prices, they typically?
A. Reduce their quantity demanded more in the long run than in the short run.
B. Reduce their quantity demanded more in the short run than in the long run.
C. Do not reduce their quantity demanded in the short run or the long run.
D. Increase their quantity demanded in the short run but reduce their quantity demanded in
the long run.
16. – What does the price elasticity of demand measure?
A. By how much quantity demanded responds to change in price.
B. By how much quantity demanded responds to change in income.
C. By how much quantity price responds to a change in demand.
D. By how much quantity demand responds to change in supply.
