ECON-B 251 Exam #1 Study Guide UPDATED ACTUAL
Questions and CORRECT Answers
All economic questions are about how to deal with scarcity
Which of the following is a microeconomic question? Will taxing pizza increase the amount of pizzas sold?
Choose all that apply. Will a shortage of electricians lead to increase in their wages?
Rational decision makers are called maximizers
Because we face scarcity, every choice involves trade-offs
You decide to take a vacation and the trip costs you 2,750
$2,000. While you are on vacation, you do not report to
work where you could have earned $750. The
opportunity cost of the vacation is $
Strategic decisions include other's decisions
Choose all that apply. one's own benefits
one's own costs
The night before a midterm exam, you decide to go to 10
the movies instead of studying for the exam. You score
60 percent on your exam. If you had studied the night
before, you'd have scored 70 percent. The opportunity
cost of your evening at the movies is ___ percent.
Which of the following is a positive statement? A 10 percent increase in income leads to a 4 percent increase in the consumption
of beef.
Which of the following is a normative statement? You should eat less candy.
Which of the following are true statements? Economists try to isolate cause and effect relationships.
Choose all that apply. Economists use empirical analysis, as well as natural and economic experiments.
When an economy produces more smartphones and "what?"
fewer cars, it is answering the __ question.
Point N in the above diagram illustrates a production point that has underutilization of resources.
, Point ___ on the production possibilities curve in the L
above diagram illustrates an unattainable point.
If Shen produces both paninis and burgers, then when there is no tradeoff between paninis and burgers.
production is efficient,
The principle of decreasing marginal benefit implies the additional benefit from obtaining one more of a good or service decreases as
more is consumed.
An economy produces face masks. If the economy it produces the quantity on the PPC that is valued most highly.
achieves allocative efficiency, then
In a year, Keisha produces 40 sandwiches or 100 cups of Keisha, Doug
coffee. In a year, Doug produces 30 sandwiches or 90
cups of coffee.
Based on this information, ____ has an absolute value in
cups of coffee____ has a comparative advantage in cups
of coffee.
In a year, Keisha produces 40 sandwiches or 100 cups of sandwiches, cups of coffee
coffee. In a year, Doug produces 30 sandwiches or 90
cups of coffee.
To maximize their total output of sandwiches and cups of
coffee Keisha should specialize in __ and Doug should
specialize in ____.
Two business owners, Allison and Bianca, have identical Allison's future consumption will be greater than Bianca's.
production possibilities frontiers illustrated above. If
Allison produces at point a and Bianca produces at point
b, then
Which of the following causes a movement up along the An increase in the amount of capital.
per-worker production function?
A 0.5 percent change in the growth rate has a significant effect on long-run output (real GDP) over time.
Suppose two countries have a per capita real GDP of 28121.60
$25,000 in 2016. Econoland has a growth rate of 4
percent and Micropolis has a growth rate of 5 percent. By
2019, the per capita real GDP for Econoland is $ _.
Suppose two countries have a per capita real GDP of 28940.63
$25,000 in 2016. Econoland has a growth rate of 4
percent and Micropolis has a growth rate of 5 percent. By
2019, the per capita real GDP for Micropolis is $ _.
Questions and CORRECT Answers
All economic questions are about how to deal with scarcity
Which of the following is a microeconomic question? Will taxing pizza increase the amount of pizzas sold?
Choose all that apply. Will a shortage of electricians lead to increase in their wages?
Rational decision makers are called maximizers
Because we face scarcity, every choice involves trade-offs
You decide to take a vacation and the trip costs you 2,750
$2,000. While you are on vacation, you do not report to
work where you could have earned $750. The
opportunity cost of the vacation is $
Strategic decisions include other's decisions
Choose all that apply. one's own benefits
one's own costs
The night before a midterm exam, you decide to go to 10
the movies instead of studying for the exam. You score
60 percent on your exam. If you had studied the night
before, you'd have scored 70 percent. The opportunity
cost of your evening at the movies is ___ percent.
Which of the following is a positive statement? A 10 percent increase in income leads to a 4 percent increase in the consumption
of beef.
Which of the following is a normative statement? You should eat less candy.
Which of the following are true statements? Economists try to isolate cause and effect relationships.
Choose all that apply. Economists use empirical analysis, as well as natural and economic experiments.
When an economy produces more smartphones and "what?"
fewer cars, it is answering the __ question.
Point N in the above diagram illustrates a production point that has underutilization of resources.
, Point ___ on the production possibilities curve in the L
above diagram illustrates an unattainable point.
If Shen produces both paninis and burgers, then when there is no tradeoff between paninis and burgers.
production is efficient,
The principle of decreasing marginal benefit implies the additional benefit from obtaining one more of a good or service decreases as
more is consumed.
An economy produces face masks. If the economy it produces the quantity on the PPC that is valued most highly.
achieves allocative efficiency, then
In a year, Keisha produces 40 sandwiches or 100 cups of Keisha, Doug
coffee. In a year, Doug produces 30 sandwiches or 90
cups of coffee.
Based on this information, ____ has an absolute value in
cups of coffee____ has a comparative advantage in cups
of coffee.
In a year, Keisha produces 40 sandwiches or 100 cups of sandwiches, cups of coffee
coffee. In a year, Doug produces 30 sandwiches or 90
cups of coffee.
To maximize their total output of sandwiches and cups of
coffee Keisha should specialize in __ and Doug should
specialize in ____.
Two business owners, Allison and Bianca, have identical Allison's future consumption will be greater than Bianca's.
production possibilities frontiers illustrated above. If
Allison produces at point a and Bianca produces at point
b, then
Which of the following causes a movement up along the An increase in the amount of capital.
per-worker production function?
A 0.5 percent change in the growth rate has a significant effect on long-run output (real GDP) over time.
Suppose two countries have a per capita real GDP of 28121.60
$25,000 in 2016. Econoland has a growth rate of 4
percent and Micropolis has a growth rate of 5 percent. By
2019, the per capita real GDP for Econoland is $ _.
Suppose two countries have a per capita real GDP of 28940.63
$25,000 in 2016. Econoland has a growth rate of 4
percent and Micropolis has a growth rate of 5 percent. By
2019, the per capita real GDP for Micropolis is $ _.
