ECN 104 Question and answers
already passed 2025
Daniel decides to spend the last two hours of the night before his economics
exam studying instead of sleeping. For Daniel, his tradeoff would be
A) nothing, since studying would be more beneficial than sleep
B) the six hours of sleep he could have had if he had gone to bed before
midnight
C) the two hours of rest he would have gotten
D) nothing, since no dollar value can be put on sleep - correct answer C) the
two hours of rest he would have gotten
What is the oppurtunity cost of going to college?
A) the total spent on food, clothing, books, transportation, tuition, lodging and
other expenses
B) zero for students who are fortunate enough to have all of their college
expenses paid by someone else
C) zero, since a college education will allow a student to earn a larger income
after graduation
D) The value of the best opportunity a student gives up to attend college -
correct answer D) The value of the best opportunity a student gives up to
attend college
The main function of the entrepreneur is to:
A) create market demand
B) innovate
C) purchase capital
D) make routine pricing decisions - correct answer B) innovate
,Tammie makes $150 a day as a bank clerk. She takes off two days off work
without pay to fly to another city to attend the concert of her favorite music
group. The cost of transportation for the trip is $250. The cost of the concert
ticket is $50. The opportunity cost of Tammie's attending the concert is:
A) $500
B) $300
C) $600
D) $450 - correct answer C) $600
A typical concave production possibility curve implies:
A) that economic resources are scarce
B) all of the above
C) that society must choose among various attainable combinations of goods
D) increasing opportunity costs - correct answer B) all of the above
The society must also make choices under conditions of scarcity. This
problem arises from the fact that:
A) Society's wants and resources are both unlimited
B) resources are scarce relative to society's wants
C) society's wants are limited but the resources are not
D) societies behave only in their self-interest - correct answer B) resources
are scarce relative to society's wants
the output of compact disc players should be:
A) reduced if marginal costs exceed marginal benefits
B) reduced if marginal benefits exceed marginal costs
, C) reduced to zero if their unit costs exceed the unit costs of alternative
products
D) increased if marginal costs exceed marginal benefits - correct answer A)
reduced if marginal costs exceed marginal benefits
Normative statements are concerned with:
A) what ought to be
B) facts and theories
C) what is
D) rational choice involving costs and benefits - correct answer A) what ought
to be
What does making decisions "at the margin" mean?
A) that people always calculate the marginal dollar costs for each decision
B) that people make those decisions that do not impose a marginal cost
C) that people evaluate how easily a decision can be reversed if problems
arise
D) that people compare the MC and MB benefits of each decision - correct
answer D) that people compare the MC and MB of each decision
In which of the following situations would economists use the world equity?
A) society is getting the most it can from its scare resources
B) each member of society has the same income
C) those in society who have the least will receive the most
D) the benefits of society's resources are distributed fairly among society's
members - correct answer D) the benefits of society's resources are
distributed fairly among society's members
already passed 2025
Daniel decides to spend the last two hours of the night before his economics
exam studying instead of sleeping. For Daniel, his tradeoff would be
A) nothing, since studying would be more beneficial than sleep
B) the six hours of sleep he could have had if he had gone to bed before
midnight
C) the two hours of rest he would have gotten
D) nothing, since no dollar value can be put on sleep - correct answer C) the
two hours of rest he would have gotten
What is the oppurtunity cost of going to college?
A) the total spent on food, clothing, books, transportation, tuition, lodging and
other expenses
B) zero for students who are fortunate enough to have all of their college
expenses paid by someone else
C) zero, since a college education will allow a student to earn a larger income
after graduation
D) The value of the best opportunity a student gives up to attend college -
correct answer D) The value of the best opportunity a student gives up to
attend college
The main function of the entrepreneur is to:
A) create market demand
B) innovate
C) purchase capital
D) make routine pricing decisions - correct answer B) innovate
,Tammie makes $150 a day as a bank clerk. She takes off two days off work
without pay to fly to another city to attend the concert of her favorite music
group. The cost of transportation for the trip is $250. The cost of the concert
ticket is $50. The opportunity cost of Tammie's attending the concert is:
A) $500
B) $300
C) $600
D) $450 - correct answer C) $600
A typical concave production possibility curve implies:
A) that economic resources are scarce
B) all of the above
C) that society must choose among various attainable combinations of goods
D) increasing opportunity costs - correct answer B) all of the above
The society must also make choices under conditions of scarcity. This
problem arises from the fact that:
A) Society's wants and resources are both unlimited
B) resources are scarce relative to society's wants
C) society's wants are limited but the resources are not
D) societies behave only in their self-interest - correct answer B) resources
are scarce relative to society's wants
the output of compact disc players should be:
A) reduced if marginal costs exceed marginal benefits
B) reduced if marginal benefits exceed marginal costs
, C) reduced to zero if their unit costs exceed the unit costs of alternative
products
D) increased if marginal costs exceed marginal benefits - correct answer A)
reduced if marginal costs exceed marginal benefits
Normative statements are concerned with:
A) what ought to be
B) facts and theories
C) what is
D) rational choice involving costs and benefits - correct answer A) what ought
to be
What does making decisions "at the margin" mean?
A) that people always calculate the marginal dollar costs for each decision
B) that people make those decisions that do not impose a marginal cost
C) that people evaluate how easily a decision can be reversed if problems
arise
D) that people compare the MC and MB benefits of each decision - correct
answer D) that people compare the MC and MB of each decision
In which of the following situations would economists use the world equity?
A) society is getting the most it can from its scare resources
B) each member of society has the same income
C) those in society who have the least will receive the most
D) the benefits of society's resources are distributed fairly among society's
members - correct answer D) the benefits of society's resources are
distributed fairly among society's members
