econ exam/122 Questions and
Answers/100% Verified
which statement best explains why countries must make tradeoffs - -
National production is limited by the availability of scarce natural resources -What is the primary incentive for business owners in a market economy - -
Earning profits -Suppose a new federal budget raises health care spending by 15 million what is the opportunity cost of that change - -The alternative uses of the additional money spent -Zoe is deciding which of two posters to buy one is regularly priced at $12 and the other one is marked down from $20 to $12 which piece of advice should she consider most - -Ignore that one of the posters is marked down and consider them equally -One store in marias town sells her preferred guitar strings much cheaper than all the other stores. Maria visisted the store but had a bad experience where would an economist suggest she buy guitar strings next time - -The same store because fairness should not be a factor in her decision -Why is some government intervention most likely to be helpful in a market economy - -Incentives sometimes encourage producers to act in ways that are not beneficial to consumers -How do budgets relate to opportunity costs - -Opportunity costs are a result of the decisions made using a budget -Achieving economic growth and in the process using up resources faster than they become available puts the goal of economic growth in conflict with
the goal of - -Sustainability -The McCormick family is trying to decide whether to plant corn or soybeans on their farm. Which economic concept should they most consider in their decision - -Tradeoffs among goals -Which of the following is true of economic models - -In order to be more useful they may become less realistic -To calculate the net benefit of an action it would be correct to - -Subtract cost from benefit -Which of the following is an economic goal that command economies do well in achieving - -Economic security -Economic studies that are based on facts and cause and effect relationships
are - -Positive -Eugenia opened a bicycle store. Which of the following gives the best example of how Eugenia uses the scarce resource "labor" - -Eugenia hired an employee to do bicycle repairs -A manufacturer who decides to use more labor and fewer machines to produce a given level of output is dealing with the economic question of - -
How to produce -Which of the following would most contribute to economic security within a society - -Companies produce a great deal of well paying jobs -What is one likely effect of a lack of economic growth in a country with a growing population - -More people must divide the same number of goods and services among themselves -A _____________ should not be a factor in decision making because it is paid no matter what you decide - -Sunk cost -Which of the following questions would be explored in the study of macroeconomics - -What causes inflation and makes prices rise -Which of the following transactions would take place in the product market - -Firms selling goods to households -Which of the following topics would a micro-economist study - -How people
decide to buy or sell a home under different economic conditions -"My way of doing things has always worked in the past and I plan on continuing doing it that way in the future" is irrational decision making caused by - -Falling victim to the status quo bias -Sometimes people let their emotions cloud their judgment about costs and benefits. When this happens they make: - -Irrational decisions -"My new Investment strategy cannot fail" is irrational decision making caused by - -Being overconfident -Which of the following correctly shows the relationship of scarcity, resources, and wants? - -Resource scarcity, Limited ability to produce goods and services, limited ability to satisfy wants
Answers/100% Verified
which statement best explains why countries must make tradeoffs - -
National production is limited by the availability of scarce natural resources -What is the primary incentive for business owners in a market economy - -
Earning profits -Suppose a new federal budget raises health care spending by 15 million what is the opportunity cost of that change - -The alternative uses of the additional money spent -Zoe is deciding which of two posters to buy one is regularly priced at $12 and the other one is marked down from $20 to $12 which piece of advice should she consider most - -Ignore that one of the posters is marked down and consider them equally -One store in marias town sells her preferred guitar strings much cheaper than all the other stores. Maria visisted the store but had a bad experience where would an economist suggest she buy guitar strings next time - -The same store because fairness should not be a factor in her decision -Why is some government intervention most likely to be helpful in a market economy - -Incentives sometimes encourage producers to act in ways that are not beneficial to consumers -How do budgets relate to opportunity costs - -Opportunity costs are a result of the decisions made using a budget -Achieving economic growth and in the process using up resources faster than they become available puts the goal of economic growth in conflict with
the goal of - -Sustainability -The McCormick family is trying to decide whether to plant corn or soybeans on their farm. Which economic concept should they most consider in their decision - -Tradeoffs among goals -Which of the following is true of economic models - -In order to be more useful they may become less realistic -To calculate the net benefit of an action it would be correct to - -Subtract cost from benefit -Which of the following is an economic goal that command economies do well in achieving - -Economic security -Economic studies that are based on facts and cause and effect relationships
are - -Positive -Eugenia opened a bicycle store. Which of the following gives the best example of how Eugenia uses the scarce resource "labor" - -Eugenia hired an employee to do bicycle repairs -A manufacturer who decides to use more labor and fewer machines to produce a given level of output is dealing with the economic question of - -
How to produce -Which of the following would most contribute to economic security within a society - -Companies produce a great deal of well paying jobs -What is one likely effect of a lack of economic growth in a country with a growing population - -More people must divide the same number of goods and services among themselves -A _____________ should not be a factor in decision making because it is paid no matter what you decide - -Sunk cost -Which of the following questions would be explored in the study of macroeconomics - -What causes inflation and makes prices rise -Which of the following transactions would take place in the product market - -Firms selling goods to households -Which of the following topics would a micro-economist study - -How people
decide to buy or sell a home under different economic conditions -"My way of doing things has always worked in the past and I plan on continuing doing it that way in the future" is irrational decision making caused by - -Falling victim to the status quo bias -Sometimes people let their emotions cloud their judgment about costs and benefits. When this happens they make: - -Irrational decisions -"My new Investment strategy cannot fail" is irrational decision making caused by - -Being overconfident -Which of the following correctly shows the relationship of scarcity, resources, and wants? - -Resource scarcity, Limited ability to produce goods and services, limited ability to satisfy wants
