ECO111 Full Questions and Answers Correct 100% 2023

ECO111 Full Questions and Answers Correct 100% 2023. Mitch has $100 to spend and wants to buy either a new amplifier for his guitar or a new mp3 player to listen to music while working out. Both the amplifier and the mp3 player cost $100, so he can only buy one. This illustrates the basic concept that a. trade can make everyone better off. b. people face trade-offs c. rational people think at the margin. d. people respond to incentives. - correct answer B QN=3 (17123) Senator Smart, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Smart should argue that trade can be beneficial a. only if it allows us to obtain things that we couldn't make for ourselves. b. because it allows specialization, which increases total output. c. to us if we can gain and the others involved in the trade lose. d. in only a limited number of circumstances because others are typically self-interested. - correct answer B QN=4 (17136) Economics deals primarily with the concept of a. scarcity. b. money. c. poverty. d. banking. - correct answer A QN=5 (17126) Households and economies have each of the following in common EXCEPT both a. must allocate scarce resources. b. face many decisions. c. must allocate the goods and services they produce. d. must have a central decision maker. - correct answer D An increase in the overall level of prices in an economy is referred to as a. economic growth. b. inflation. c. monetary policy. d. supply shocks. - correct answer B QN=7 (17144) In an economy in which decisions are guided by prices and individual self-interest, there is a. the potential to achieve efficiency in production. b. a strong need for government intervention in the market. c. less efficiency than would be observed in a centrally-planned economy. d. more need for a strong legal system to control individual greed than would be needed in a centrally-planned economy. - correct answer A