ECN 211 Midterm 1 review Exam
Questions and Answers
Economics is the study of how evenly goods and services are distributed within
society
TRUE
FALSE - CORRECT ANSWER-TRUE
In a particular country in 1998, the average worker needed to work 25 hours to
produce 40 units of output. In that same country in 2008, the average worker
needed to work 40 hours to produce 68 units of output. In that country, the
productivity of the average worker
decreased by 1.7 percent between 1998 and 2008.
remained unchanged between 1998 and 2008.
increased by 4.75 percent between 1998 and 2008.
,increased by 6.25 percent between 1998 and 2008. - CORRECT ANSWER-
increased by 6.25 percent between 1998 and 2008.
You are considering staying in college another semester so that you can complete a
major in economics. In deciding whether or not to stay you should
compare the total cost of your education to the total benefits of your education
compare the total cost of your education to the benefits of staying one more
semester.
compare the cost of staying one more semester to the benefits of staying one more
semester.
compare the total benefits of your education to the cost of staying one more
semester. - CORRECT ANSWER-compare the cost of staying one more semester
to the benefits of staying one more semester.
Under what conditions might government intervention in a market economy
improve the economy's performance? - CORRECT ANSWER-When there is a
"market failure," such as the presence of monopolies, significant externalities, or
situations where the market fails to adequately provide essential public goods,
leading to inefficient allocation of resources.
, Prices direct economic activity in a market economy by
influencing the actions of buyers and sellers.
reducing scarcity of the goods and services produced.
reducing opportunity cost of goods and services produced.
allocating goods and services in the most equitable way. - CORRECT ANSWER-
influencing the actions of buyers and sellers.
Evaluating normative statements involves values as well as facts
TRUE
FALSE - CORRECT ANSWER-TRUE
A survey of professional economists revealed that more than three-fourths of them
agreed with fourteen economic propositions. Which of the following is not one of
those propositions?
The United States should not restrict employers from outsourcing work to foreign
countries
Questions and Answers
Economics is the study of how evenly goods and services are distributed within
society
TRUE
FALSE - CORRECT ANSWER-TRUE
In a particular country in 1998, the average worker needed to work 25 hours to
produce 40 units of output. In that same country in 2008, the average worker
needed to work 40 hours to produce 68 units of output. In that country, the
productivity of the average worker
decreased by 1.7 percent between 1998 and 2008.
remained unchanged between 1998 and 2008.
increased by 4.75 percent between 1998 and 2008.
,increased by 6.25 percent between 1998 and 2008. - CORRECT ANSWER-
increased by 6.25 percent between 1998 and 2008.
You are considering staying in college another semester so that you can complete a
major in economics. In deciding whether or not to stay you should
compare the total cost of your education to the total benefits of your education
compare the total cost of your education to the benefits of staying one more
semester.
compare the cost of staying one more semester to the benefits of staying one more
semester.
compare the total benefits of your education to the cost of staying one more
semester. - CORRECT ANSWER-compare the cost of staying one more semester
to the benefits of staying one more semester.
Under what conditions might government intervention in a market economy
improve the economy's performance? - CORRECT ANSWER-When there is a
"market failure," such as the presence of monopolies, significant externalities, or
situations where the market fails to adequately provide essential public goods,
leading to inefficient allocation of resources.
, Prices direct economic activity in a market economy by
influencing the actions of buyers and sellers.
reducing scarcity of the goods and services produced.
reducing opportunity cost of goods and services produced.
allocating goods and services in the most equitable way. - CORRECT ANSWER-
influencing the actions of buyers and sellers.
Evaluating normative statements involves values as well as facts
TRUE
FALSE - CORRECT ANSWER-TRUE
A survey of professional economists revealed that more than three-fourths of them
agreed with fourteen economic propositions. Which of the following is not one of
those propositions?
The United States should not restrict employers from outsourcing work to foreign
countries
