TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
ECON 100 Exam Practice Questions and
Answers | 100% Pass
What is economics? - Answer✔️✔️-A study of how people make choices to achieve goals
with resource constraints.
What is meant by "the invisible hand?" - Answer✔️✔️-The "invisible hand" means that the
division of labor and exchange occur naturally among people without being directed by
anyone.
What is the root of exchange behavior? - Answer✔️✔️-Human natural tendency toward
division of labor to gain efficiency.
Division of labor and exchange are human tendencies to enhance one's self-interest.
Can contributing to charities to assure everyone in one's community has access to food,
housing and health care be consistent with the principles of self-interest? - Answer✔️✔️-
Yes
What is scientific about Social Science? - Answer✔️✔️-Social scientists use the scientific
method to test hypotheses about human behavior.
What is the contribution of The Wealth of Nations published by Adam Smith in 1776? -
Answer✔️✔️-Adam Smith described how people made production and consumption
decisions in the 18th Century.
1/28
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
What is a market as discussed in an economics class? - Answer✔️✔️-The coming
together of suppliers and demanders of goods and services.
What do consumers want to achieve? - Answer✔️✔️-- Maximize personal satisfaction.
- Take care of their children and families.
- Assure that poor people are fed, housed, and clothed.
**All the above**
As the price of gasoline continues to rise, - Answer✔️✔️-The quantity consumed will
decline as consumers respond to higher prices.
Why would producers offer more of a product as price rises? - Answer✔️✔️-- Because
some inefficient, high-cost producers can enter the market at high prices.
- Because producers can justify using more expensive inputs when product prices are
high.
- Because producers are willing to work overtime when prices are good.
**All the above**
What is the principal communication device between producers and consumers in a free
market? - Answer✔️✔️-Price.
From an economic perspective, a choice is: - Answer✔️✔️-A decision that must be made
because resources are scarce.
2/28
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
You know you have incurred a cost when: - Answer✔️✔️-You must give up something
you wanted when making a choice.
Why do we tend to see specialization and trade develop at the same time? -
Answer✔️✔️-Specialization increases productivity, so trade must increase because no
one remains self-sufficient.
In a free market, competition involves: - Answer✔️✔️-Buyer competing against buyer,
and seller competing against seller.
Automobile sales have plummeted during the recession. This suggests that consumer
demand for automobiles tends to be: - Answer✔️✔️-Income Elastic
Why are states rushing to increase cigarette taxes? - Answer✔️✔️-Because cigarettes
have a demand which is price inelastic, resulting in big increases in state revenue.
In the German Beer Market, What Effect Do Wine Sales Have on Beer Demand? -
Answer✔️✔️--Wine and Beer Go Together (Complements) So More Wine Causes an
Increase in Demand for Beer.
-Wine and Beer are Substitutes So More Wine Causes a Decrease in Demand for Beer.
-Wine and Beer have no Effect on One Another, So the Demand for Beer is Unaffected
by the Consumption of Wine.
3/28
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
ECON 100 Exam Practice Questions and
Answers | 100% Pass
What is economics? - Answer✔️✔️-A study of how people make choices to achieve goals
with resource constraints.
What is meant by "the invisible hand?" - Answer✔️✔️-The "invisible hand" means that the
division of labor and exchange occur naturally among people without being directed by
anyone.
What is the root of exchange behavior? - Answer✔️✔️-Human natural tendency toward
division of labor to gain efficiency.
Division of labor and exchange are human tendencies to enhance one's self-interest.
Can contributing to charities to assure everyone in one's community has access to food,
housing and health care be consistent with the principles of self-interest? - Answer✔️✔️-
Yes
What is scientific about Social Science? - Answer✔️✔️-Social scientists use the scientific
method to test hypotheses about human behavior.
What is the contribution of The Wealth of Nations published by Adam Smith in 1776? -
Answer✔️✔️-Adam Smith described how people made production and consumption
decisions in the 18th Century.
1/28
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
What is a market as discussed in an economics class? - Answer✔️✔️-The coming
together of suppliers and demanders of goods and services.
What do consumers want to achieve? - Answer✔️✔️-- Maximize personal satisfaction.
- Take care of their children and families.
- Assure that poor people are fed, housed, and clothed.
**All the above**
As the price of gasoline continues to rise, - Answer✔️✔️-The quantity consumed will
decline as consumers respond to higher prices.
Why would producers offer more of a product as price rises? - Answer✔️✔️-- Because
some inefficient, high-cost producers can enter the market at high prices.
- Because producers can justify using more expensive inputs when product prices are
high.
- Because producers are willing to work overtime when prices are good.
**All the above**
What is the principal communication device between producers and consumers in a free
market? - Answer✔️✔️-Price.
From an economic perspective, a choice is: - Answer✔️✔️-A decision that must be made
because resources are scarce.
2/28
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
You know you have incurred a cost when: - Answer✔️✔️-You must give up something
you wanted when making a choice.
Why do we tend to see specialization and trade develop at the same time? -
Answer✔️✔️-Specialization increases productivity, so trade must increase because no
one remains self-sufficient.
In a free market, competition involves: - Answer✔️✔️-Buyer competing against buyer,
and seller competing against seller.
Automobile sales have plummeted during the recession. This suggests that consumer
demand for automobiles tends to be: - Answer✔️✔️-Income Elastic
Why are states rushing to increase cigarette taxes? - Answer✔️✔️-Because cigarettes
have a demand which is price inelastic, resulting in big increases in state revenue.
In the German Beer Market, What Effect Do Wine Sales Have on Beer Demand? -
Answer✔️✔️--Wine and Beer Go Together (Complements) So More Wine Causes an
Increase in Demand for Beer.
-Wine and Beer are Substitutes So More Wine Causes a Decrease in Demand for Beer.
-Wine and Beer have no Effect on One Another, So the Demand for Beer is Unaffected
by the Consumption of Wine.
3/28
