Econ 1500 Exam 1 (1-8) with precise detailed
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answers
Adam ||Smith's ||book, ||The ||Wealth ||of ||Nations, ||- ||CORRECT ||ANSWER-Was ||a ||critique ||of ||
Mercantilism
Was ||a ||product ||of ||the ||Enlightenment.
Was ||philosophically ||consistent ||with ||the ||Declaration ||of ||Independence.
All ||of ||the ||above ||are ||correct
Adam ||Smith's ||book, ||The ||Wealth ||of ||Nations, ||- ||CORRECT ||ANSWER-Argued ||in ||favor ||of ||allowing ||
markets ||to ||allocate ||resources.
According ||to ||the ||Invisible ||Hand ||Theorem, ||the ||market ||system ||will ||- ||CORRECT ||ANSWER-Produce ||
goods ||efficiently
According ||to ||the ||Invisible ||Hand ||Theorem, ||the ||market ||system ||will ||- ||CORRECT ||ANSWER-Produce ||
goods ||that ||people ||demand
Which ||of ||the ||following ||are ||scarce? ||- ||CORRECT ||ANSWER-Natural ||resources
Capital
Goods ||and ||services
All ||of ||the ||above ||are ||correct
If ||you ||make ||decisions ||as ||assumed ||by ||economists, ||you ||are ||in ||college ||rather ||than ||working ||as ||a
||truck ||driver ||because ||you ||perceive ||the ||_____________ ||of ||a ||college ||degree ||as ||greater ||than ||the
||________________ ||of ||a ||college ||degree ||- ||CORRECT ||ANSWER-Marginal ||Benefit; ||Marginal ||Cost
For ||which ||of ||the ||following ||questions ||can ||the ||discipline ||of ||economics ||provide ||an ||explanation ||as
||to ||the ||correct ||answer? ||- ||CORRECT ||ANSWER-What ||to ||Produce?
,Applying ||the ||economic ||decision ||rule, ||you ||would ||wear ||a ||mask ||if: ||- ||CORRECT ||ANSWER-Marginal ||
benefit ||to ||you ||> ||marginal ||cost ||to ||you
Scarcity ||results ||in ||- ||CORRECT ||ANSWER-The ||law ||of ||increasing ||marginal ||opportunity ||costs
The ||no ||free ||lunch ||principle
The ||necessity ||of ||choice
Both ||B ||and ||C ||are ||Correct ||but ||not ||A
The ||cost ||of ||your ||college ||education ||includes: ||- ||CORRECT ||ANSWER-The ||explicit ||cost ||of ||books
The ||implicit ||cost ||of ||your ||time
An ||opportunity ||cost
All ||of ||the ||above
Which ||statement ||best ||summarizes ||the ||Invisible ||Hand ||theory? ||- ||CORRECT ||ANSWER-Markets ||
typically ||channel ||individual ||self-interest ||to ||achieve ||the ||common ||good
Economics ||as ||a ||discipline ||- ||CORRECT ||ANSWER-Is ||defined ||more ||by ||its ||methodology ||than ||its ||
areas ||of ||inquiry
Has ||proved ||a ||powerful ||tool ||in ||understanding ||human ||behavior
Often ||relies ||on ||assumptions ||and ||deductive ||logic.
All ||of ||the ||above ||correct
The ||Invisible ||Hand ||Theorem ||is ||based ||on ||a ||set ||of ||assumptions, ||including ||which ||of ||the ||
following? ||- ||CORRECT ||ANSWER-No ||external ||benefits.
No ||external ||costs.
Individuals ||are ||irrational.
Both ||A ||and ||B ||are ||correct ||but ||not ||C.
In ||the ||United ||States, ||which ||is ||used ||to ||determine ||the ||wages ||of ||welders? ||- ||CORRECT ||ANSWER-
Markets
, If ||it ||takes ||you ||an ||hour ||to ||make ||a ||rational ||decision ||and ||the ||opportunity ||cost ||of ||that ||hour ||is ||
$100, ||you ||will: ||- ||CORRECT ||ANSWER-make ||rational ||decisions ||only ||if ||the ||benefit ||from ||doing ||so ||
exceeds ||$100
On ||the ||issue ||of ||mask ||wearing, ||from ||a ||social ||perspective, ||free ||market ||decision ||making ||will ||
result ||in: ||- ||CORRECT ||ANSWER-An ||inefficient ||level ||of ||mask ||wearing.
An ||efficient ||level ||of ||mask ||wearing.
Too ||few ||of ||individuals ||wearing ||a ||mask.
Both ||A ||and ||C ||are ||correct ||but ||not ||B.
For ||a ||given ||benefit, ||a ||rational ||person ||chooses ||the ||option ||that ||has: ||- ||CORRECT ||ANSWER-the ||
lowest ||opportunity ||cost
The ||supply-demand, ||price ||system ||that ||answers ||the ||question ||of ||what ||to ||produce ||is ||closely ||
associated ||with ||the ||notion ||of: ||- ||CORRECT ||ANSWER-Individual ||choice
The ||Invisible ||Hand.
The ||Market ||System
All ||of ||the ||above ||are ||correct
Even ||though ||80,000 ||individuals ||in ||the ||United ||States ||wait ||for ||kidney ||transplants ||and, ||for ||a ||
price, ||there ||are ||many ||individuals ||who ||would ||be ||willing ||to ||supply ||a ||kidney, ||it ||remains ||illegal ||
to ||buy ||and ||sell ||kidneys ||in ||the ||United ||States. ||A ||market ||for ||kidneys ||does ||not ||exist ||because ||of:
||- ||CORRECT ||ANSWER-political ||forces.
Which ||of ||the ||following ||is ||the ||reason ||Nogales, ||AZ ||has ||a ||higher ||level ||of ||average ||income ||than ||
Nogales, ||Mexico ||- ||CORRECT ||ANSWER-Markets ||play ||a ||larger ||role ||in ||answering ||the ||three ||big ||
economic ||questions ||of ||what, ||how ||and ||for ||whom ||in ||AZ ||compared ||to ||Mexico
Which ||of ||the ||following ||will ||shift ||the ||PPC ||out? ||- ||CORRECT ||ANSWER-Better ||institutions
Less ||capital
More ||capital
|| || || || || || || ||
answers
Adam ||Smith's ||book, ||The ||Wealth ||of ||Nations, ||- ||CORRECT ||ANSWER-Was ||a ||critique ||of ||
Mercantilism
Was ||a ||product ||of ||the ||Enlightenment.
Was ||philosophically ||consistent ||with ||the ||Declaration ||of ||Independence.
All ||of ||the ||above ||are ||correct
Adam ||Smith's ||book, ||The ||Wealth ||of ||Nations, ||- ||CORRECT ||ANSWER-Argued ||in ||favor ||of ||allowing ||
markets ||to ||allocate ||resources.
According ||to ||the ||Invisible ||Hand ||Theorem, ||the ||market ||system ||will ||- ||CORRECT ||ANSWER-Produce ||
goods ||efficiently
According ||to ||the ||Invisible ||Hand ||Theorem, ||the ||market ||system ||will ||- ||CORRECT ||ANSWER-Produce ||
goods ||that ||people ||demand
Which ||of ||the ||following ||are ||scarce? ||- ||CORRECT ||ANSWER-Natural ||resources
Capital
Goods ||and ||services
All ||of ||the ||above ||are ||correct
If ||you ||make ||decisions ||as ||assumed ||by ||economists, ||you ||are ||in ||college ||rather ||than ||working ||as ||a
||truck ||driver ||because ||you ||perceive ||the ||_____________ ||of ||a ||college ||degree ||as ||greater ||than ||the
||________________ ||of ||a ||college ||degree ||- ||CORRECT ||ANSWER-Marginal ||Benefit; ||Marginal ||Cost
For ||which ||of ||the ||following ||questions ||can ||the ||discipline ||of ||economics ||provide ||an ||explanation ||as
||to ||the ||correct ||answer? ||- ||CORRECT ||ANSWER-What ||to ||Produce?
,Applying ||the ||economic ||decision ||rule, ||you ||would ||wear ||a ||mask ||if: ||- ||CORRECT ||ANSWER-Marginal ||
benefit ||to ||you ||> ||marginal ||cost ||to ||you
Scarcity ||results ||in ||- ||CORRECT ||ANSWER-The ||law ||of ||increasing ||marginal ||opportunity ||costs
The ||no ||free ||lunch ||principle
The ||necessity ||of ||choice
Both ||B ||and ||C ||are ||Correct ||but ||not ||A
The ||cost ||of ||your ||college ||education ||includes: ||- ||CORRECT ||ANSWER-The ||explicit ||cost ||of ||books
The ||implicit ||cost ||of ||your ||time
An ||opportunity ||cost
All ||of ||the ||above
Which ||statement ||best ||summarizes ||the ||Invisible ||Hand ||theory? ||- ||CORRECT ||ANSWER-Markets ||
typically ||channel ||individual ||self-interest ||to ||achieve ||the ||common ||good
Economics ||as ||a ||discipline ||- ||CORRECT ||ANSWER-Is ||defined ||more ||by ||its ||methodology ||than ||its ||
areas ||of ||inquiry
Has ||proved ||a ||powerful ||tool ||in ||understanding ||human ||behavior
Often ||relies ||on ||assumptions ||and ||deductive ||logic.
All ||of ||the ||above ||correct
The ||Invisible ||Hand ||Theorem ||is ||based ||on ||a ||set ||of ||assumptions, ||including ||which ||of ||the ||
following? ||- ||CORRECT ||ANSWER-No ||external ||benefits.
No ||external ||costs.
Individuals ||are ||irrational.
Both ||A ||and ||B ||are ||correct ||but ||not ||C.
In ||the ||United ||States, ||which ||is ||used ||to ||determine ||the ||wages ||of ||welders? ||- ||CORRECT ||ANSWER-
Markets
, If ||it ||takes ||you ||an ||hour ||to ||make ||a ||rational ||decision ||and ||the ||opportunity ||cost ||of ||that ||hour ||is ||
$100, ||you ||will: ||- ||CORRECT ||ANSWER-make ||rational ||decisions ||only ||if ||the ||benefit ||from ||doing ||so ||
exceeds ||$100
On ||the ||issue ||of ||mask ||wearing, ||from ||a ||social ||perspective, ||free ||market ||decision ||making ||will ||
result ||in: ||- ||CORRECT ||ANSWER-An ||inefficient ||level ||of ||mask ||wearing.
An ||efficient ||level ||of ||mask ||wearing.
Too ||few ||of ||individuals ||wearing ||a ||mask.
Both ||A ||and ||C ||are ||correct ||but ||not ||B.
For ||a ||given ||benefit, ||a ||rational ||person ||chooses ||the ||option ||that ||has: ||- ||CORRECT ||ANSWER-the ||
lowest ||opportunity ||cost
The ||supply-demand, ||price ||system ||that ||answers ||the ||question ||of ||what ||to ||produce ||is ||closely ||
associated ||with ||the ||notion ||of: ||- ||CORRECT ||ANSWER-Individual ||choice
The ||Invisible ||Hand.
The ||Market ||System
All ||of ||the ||above ||are ||correct
Even ||though ||80,000 ||individuals ||in ||the ||United ||States ||wait ||for ||kidney ||transplants ||and, ||for ||a ||
price, ||there ||are ||many ||individuals ||who ||would ||be ||willing ||to ||supply ||a ||kidney, ||it ||remains ||illegal ||
to ||buy ||and ||sell ||kidneys ||in ||the ||United ||States. ||A ||market ||for ||kidneys ||does ||not ||exist ||because ||of:
||- ||CORRECT ||ANSWER-political ||forces.
Which ||of ||the ||following ||is ||the ||reason ||Nogales, ||AZ ||has ||a ||higher ||level ||of ||average ||income ||than ||
Nogales, ||Mexico ||- ||CORRECT ||ANSWER-Markets ||play ||a ||larger ||role ||in ||answering ||the ||three ||big ||
economic ||questions ||of ||what, ||how ||and ||for ||whom ||in ||AZ ||compared ||to ||Mexico
Which ||of ||the ||following ||will ||shift ||the ||PPC ||out? ||- ||CORRECT ||ANSWER-Better ||institutions
Less ||capital
More ||capital
