ECON 1500 Exam 1 study with precise detailed
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answers
Economic |systems:
-can |eliminate |scarcity.
-deal |with |the |questions |what |to |produced, |how |to |produced, |and |for |whom |to |produce.
-provide |all |the |goods |people |want |and |desire.
-provide |equal |distribution |of |income. |- |CORRECT |ANSWER-deal |with |the |questions |what |to |produced,
|how |to |produced, |and |for |whom |to |produce.
Scarcity |implies:
-individuals |cannot |answer |the |three |main |economic |questions.
-governments |cannot |answer |the |three |main |economic |questions.
-there |are |no |free |lunches.
-we |ought |just |to |give |up |and |starve. |- |CORRECT |ANSWER-there |are |no |free |lunches.
According |to |the |economic |decision |rule, |rational |individuals |compare:
-total |cost |and |total |benefits.
-marginal |costs, |sunk |costs, |and |total |benefits.
-sunk |costs |and |marginal |costs.
-marginal |costs |and |marginal |benefits. |- |CORRECT |ANSWER-marginal |costs |and |marginal |benefits.
Suppose |the |marginal |cost |of |dating |Perry |is |$30 |and |the |marginal |benefit |is |worth |$40 |to |you. |
Following |economic |reasoning, |you |should:
-date |Perry.
-not |date |Perry.
-determine |what |your |sunk |costs |are.
-determine |what |your |total |benefits |and |total |costs |are. |- |CORRECT |ANSWER-date |Perry.
,Which |of |the |following |best |defines |rational |behavior?
-Analyzing |the |total |gains |from |a |decision
-by |taking |actions |only |when |marginal |benefits |exceed |the |marginal |costs
-Seeking |to |gain |by |choosing |to |undertake |actions |as |long |as |the |marginal |costs |exceed |the |
associated |marginal |benefits
-Seeking |to |maximize |total |gain |regardless |of |cost |- |CORRECT |ANSWER-by |taking |actions |only |when |
marginal |benefits |exceed |the |marginal |costs
Chuck |offers |$140,000 |for |a |house. |The |seller |turns |down |the |offer |but |says |she |will |sell |the |house |
for |$144,000. |However, |Chuck |refuses |to |pay |the |higher |price. |If |Chuck |is |following |the |economic |
decision |rule, |the |marginal |benefit |of |the |house |to:
-Chuck |must |be |less |than |$144,000.
-Chuck |must |be |greater |than |$144,000.
-the |seller |must |be |less |than |$144,000.
-the |seller |must |be |less |than |$140,000. |- |CORRECT |ANSWER-Chuck |must |be |less |than |$144,000.
Marginal |analysis |suggests |that |you |will |engage |in |more |of |an |activity |if |the:
-total |benefit |of |the |activity |is |less |than |the |total |cost.
-additional |benefit |from |the |activity |exceeds |the |additional |cost.
-total |benefit |from |the |activity |exceeds |the |total |cost.
-additional |cost |of |the |activity |exceeds |the |additional |benefit. |- |CORRECT |ANSWER-additional |benefit |
from |the |activity |exceeds |the |additional |cost.
Economic |reasoning |would |argue |that |there |is |an |opportunity |cost |to:
-all |choices.
-more |choices.
-only |choices |that |involve |money.
-only |choices |that |do |not |involve |money. |- |CORRECT |ANSWER-all |choices.
, Brooke |and |Sandy |both |attend |the |same |college |and |have |the |same |expenses |for |tuition, |books, |and |
supplies. |However, |Brooke |is |a |famous |actress |who |could |earn |$2 |million |per |year |if |she |were |not |
attending |college |whereas |Sandy |could |earn |$10,000 |a |year |serving |hamburgers |if |he |were |not |
attending |college. |It |follows |that |the |opportunity |cost |of |attending |college:
-is |the |same |for |both |Brooke |and |Sandy.
-is |greater |for |Brooke |than |for |Sandy.
-is |greater |for |Sandy |than |for |Brooke.
-for |Brooke |and |Sandy |cannot |be |compared. |- |CORRECT |ANSWER-is |greater |for |Brooke |than |for |
Sandy.
When |your |wages |rise, |the:
-opportunity |cost |of |an |hour |of |work |decreases.
-opportunity |cost |of |an |hour |of |leisure |stays |the |same.
-cost |of |working |increases.
-opportunity |cost |of |an |hour |of |leisure |increases. |- |CORRECT |ANSWER-opportunity |cost |of |an |hour |of |
leisure |increases.
Economic |forces:
-are |a |reaction |to |scarcity.
-give |rise |to |scarcity.
-are |not |related |to |scarcity.
-are |not |related |to |rationing. |- |CORRECT |ANSWER-are |a |reaction |to |scarcity.
The |invisible |hand |noted |by |the |great |Adam |Smith |refers |to:
-market |forces.
-the |price |system.
-both |A |and |B |are |correct.
-government. |- |CORRECT |ANSWER-both |A |and |B |are |correct.
Laws |restricting |the |growing |and |selling |of |Marijuana |are |examples |of:
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answers
Economic |systems:
-can |eliminate |scarcity.
-deal |with |the |questions |what |to |produced, |how |to |produced, |and |for |whom |to |produce.
-provide |all |the |goods |people |want |and |desire.
-provide |equal |distribution |of |income. |- |CORRECT |ANSWER-deal |with |the |questions |what |to |produced,
|how |to |produced, |and |for |whom |to |produce.
Scarcity |implies:
-individuals |cannot |answer |the |three |main |economic |questions.
-governments |cannot |answer |the |three |main |economic |questions.
-there |are |no |free |lunches.
-we |ought |just |to |give |up |and |starve. |- |CORRECT |ANSWER-there |are |no |free |lunches.
According |to |the |economic |decision |rule, |rational |individuals |compare:
-total |cost |and |total |benefits.
-marginal |costs, |sunk |costs, |and |total |benefits.
-sunk |costs |and |marginal |costs.
-marginal |costs |and |marginal |benefits. |- |CORRECT |ANSWER-marginal |costs |and |marginal |benefits.
Suppose |the |marginal |cost |of |dating |Perry |is |$30 |and |the |marginal |benefit |is |worth |$40 |to |you. |
Following |economic |reasoning, |you |should:
-date |Perry.
-not |date |Perry.
-determine |what |your |sunk |costs |are.
-determine |what |your |total |benefits |and |total |costs |are. |- |CORRECT |ANSWER-date |Perry.
,Which |of |the |following |best |defines |rational |behavior?
-Analyzing |the |total |gains |from |a |decision
-by |taking |actions |only |when |marginal |benefits |exceed |the |marginal |costs
-Seeking |to |gain |by |choosing |to |undertake |actions |as |long |as |the |marginal |costs |exceed |the |
associated |marginal |benefits
-Seeking |to |maximize |total |gain |regardless |of |cost |- |CORRECT |ANSWER-by |taking |actions |only |when |
marginal |benefits |exceed |the |marginal |costs
Chuck |offers |$140,000 |for |a |house. |The |seller |turns |down |the |offer |but |says |she |will |sell |the |house |
for |$144,000. |However, |Chuck |refuses |to |pay |the |higher |price. |If |Chuck |is |following |the |economic |
decision |rule, |the |marginal |benefit |of |the |house |to:
-Chuck |must |be |less |than |$144,000.
-Chuck |must |be |greater |than |$144,000.
-the |seller |must |be |less |than |$144,000.
-the |seller |must |be |less |than |$140,000. |- |CORRECT |ANSWER-Chuck |must |be |less |than |$144,000.
Marginal |analysis |suggests |that |you |will |engage |in |more |of |an |activity |if |the:
-total |benefit |of |the |activity |is |less |than |the |total |cost.
-additional |benefit |from |the |activity |exceeds |the |additional |cost.
-total |benefit |from |the |activity |exceeds |the |total |cost.
-additional |cost |of |the |activity |exceeds |the |additional |benefit. |- |CORRECT |ANSWER-additional |benefit |
from |the |activity |exceeds |the |additional |cost.
Economic |reasoning |would |argue |that |there |is |an |opportunity |cost |to:
-all |choices.
-more |choices.
-only |choices |that |involve |money.
-only |choices |that |do |not |involve |money. |- |CORRECT |ANSWER-all |choices.
, Brooke |and |Sandy |both |attend |the |same |college |and |have |the |same |expenses |for |tuition, |books, |and |
supplies. |However, |Brooke |is |a |famous |actress |who |could |earn |$2 |million |per |year |if |she |were |not |
attending |college |whereas |Sandy |could |earn |$10,000 |a |year |serving |hamburgers |if |he |were |not |
attending |college. |It |follows |that |the |opportunity |cost |of |attending |college:
-is |the |same |for |both |Brooke |and |Sandy.
-is |greater |for |Brooke |than |for |Sandy.
-is |greater |for |Sandy |than |for |Brooke.
-for |Brooke |and |Sandy |cannot |be |compared. |- |CORRECT |ANSWER-is |greater |for |Brooke |than |for |
Sandy.
When |your |wages |rise, |the:
-opportunity |cost |of |an |hour |of |work |decreases.
-opportunity |cost |of |an |hour |of |leisure |stays |the |same.
-cost |of |working |increases.
-opportunity |cost |of |an |hour |of |leisure |increases. |- |CORRECT |ANSWER-opportunity |cost |of |an |hour |of |
leisure |increases.
Economic |forces:
-are |a |reaction |to |scarcity.
-give |rise |to |scarcity.
-are |not |related |to |scarcity.
-are |not |related |to |rationing. |- |CORRECT |ANSWER-are |a |reaction |to |scarcity.
The |invisible |hand |noted |by |the |great |Adam |Smith |refers |to:
-market |forces.
-the |price |system.
-both |A |and |B |are |correct.
-government. |- |CORRECT |ANSWER-both |A |and |B |are |correct.
Laws |restricting |the |growing |and |selling |of |Marijuana |are |examples |of:
