Econ 202 Hayes Quiz answers & Mid-Term
Study online at https://quizlet.com/_dsgeef
1. For economists, the word "utility" means C. pleasure or satisfaction
A. versatility and flexibility
B. rationality
C. pleasure or satisfaction
D. purposefulness
2. A person should consume more of something when D. benefit exceeds its mar-
its marginal ginal
A.benefit exceeds its marginal cost.
B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better.
3. Macroeconomics explains the behavior of individual false
households and business firms; microeconomics is
concerned with the behavior of aggregates or the
economy as a whole.
True/False
4. The production possibilities curve shows various com- true
binations of two products that an economy can pro-
duce when achieving full employment.
True/False
5. Choices entail marginal costs because resources are true
scarce.
True/False
6.
, Econ 202 Hayes Quiz answers & Mid-Term
Study online at https://quizlet.com/_dsgeef
In deciding whether to study for an economics quiz or scarcity and opportunity
go to a concert, one is confronted by the idea(s) of costs
A. scarcity and opportunity costs.
B. money and real capital.
C. complementary economic goals.
D. full production.
7. The budget line shows the various incomes that an false
individual can earn from different jobs.
True/False
8. The study of economics is not useful for consumers, false
because economic analysis focuses only on business-
es and the economy.
True/False
9. An increase in immigration would shift the production false
possibilities curve to the left.
True/False
10. Normative statements are expressions of facts. false
True/False
11. The Latin term "ceteris paribus" means other things equal
A. that if event A precedes event B, A has caused B.
B. that economics deals with facts, not values.
C. other things equal.
D. prosperity inevitably follows recession.
, Econ 202 Hayes Quiz answers & Mid-Term
Study online at https://quizlet.com/_dsgeef
12. Economic resources are also called factors of production
A. free gifts of nature.
B. consumption goods.
C. units of money capital.
D. factors of production.
13. A production possibilities curve illustrates scarcity
A. scarcity.
B. market prices.
C. consumer preferences.
D. the distribution of income.
14. The negative slope of the production possibilities to produce more of one
curve is a graphical way of indicating that product, we must do with
less of another
A. any economy "can have its cake and eat it too."
B. to produce more of one product, we must do with
less of another.
C. the principle of increasing opportunity costs applies
to only parts of the economy.
D. consumers buy more when prices are low than
when prices are high.
15. If an economy is operating inside its production pos- can produce more of both
sibilities curve for consumer goods and capital goods, consumer goods and cap-
it ital goods by using re-
sources that are currently
A. can only produce more consumer goods by produc- idle
ing fewer capital goods.
B. can only produce more capital goods by producing
fewer consumer goods.
, Econ 202 Hayes Quiz answers & Mid-Term
Study online at https://quizlet.com/_dsgeef
C. can produce more of both consumer goods and
capital goods by using resources that are currently
idle.
D. must improve its technology to produce more out-
put.
16. Broadly defined, competition involves independently acting
buyers and sellers and
A. private property and freedom of expression. freedom to enter or leave
B. independently acting buyers and sellers and free- markets
dom to enter or leave markets.
C. increasing opportunity costs and diminishing mar-
ginal utility.
D. capital goods and division of labor.
17. The law of demand states that, other things equal, price and quantity de-
manded are inversely re-
A. price and quantity demanded are inversely related. lated
B. the larger the number of buyers in a market, the
lower will be product price.
C. price and quantity demanded are directly related.
D. consumers will buy more of a product at high prices
than at low prices.
18. An increase in quantity supplied might be caused by false
an increase in production costs.
True/False
19. A government tax per unit of output reduces supply. true
True/False
20. true
Study online at https://quizlet.com/_dsgeef
1. For economists, the word "utility" means C. pleasure or satisfaction
A. versatility and flexibility
B. rationality
C. pleasure or satisfaction
D. purposefulness
2. A person should consume more of something when D. benefit exceeds its mar-
its marginal ginal
A.benefit exceeds its marginal cost.
B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better.
3. Macroeconomics explains the behavior of individual false
households and business firms; microeconomics is
concerned with the behavior of aggregates or the
economy as a whole.
True/False
4. The production possibilities curve shows various com- true
binations of two products that an economy can pro-
duce when achieving full employment.
True/False
5. Choices entail marginal costs because resources are true
scarce.
True/False
6.
, Econ 202 Hayes Quiz answers & Mid-Term
Study online at https://quizlet.com/_dsgeef
In deciding whether to study for an economics quiz or scarcity and opportunity
go to a concert, one is confronted by the idea(s) of costs
A. scarcity and opportunity costs.
B. money and real capital.
C. complementary economic goals.
D. full production.
7. The budget line shows the various incomes that an false
individual can earn from different jobs.
True/False
8. The study of economics is not useful for consumers, false
because economic analysis focuses only on business-
es and the economy.
True/False
9. An increase in immigration would shift the production false
possibilities curve to the left.
True/False
10. Normative statements are expressions of facts. false
True/False
11. The Latin term "ceteris paribus" means other things equal
A. that if event A precedes event B, A has caused B.
B. that economics deals with facts, not values.
C. other things equal.
D. prosperity inevitably follows recession.
, Econ 202 Hayes Quiz answers & Mid-Term
Study online at https://quizlet.com/_dsgeef
12. Economic resources are also called factors of production
A. free gifts of nature.
B. consumption goods.
C. units of money capital.
D. factors of production.
13. A production possibilities curve illustrates scarcity
A. scarcity.
B. market prices.
C. consumer preferences.
D. the distribution of income.
14. The negative slope of the production possibilities to produce more of one
curve is a graphical way of indicating that product, we must do with
less of another
A. any economy "can have its cake and eat it too."
B. to produce more of one product, we must do with
less of another.
C. the principle of increasing opportunity costs applies
to only parts of the economy.
D. consumers buy more when prices are low than
when prices are high.
15. If an economy is operating inside its production pos- can produce more of both
sibilities curve for consumer goods and capital goods, consumer goods and cap-
it ital goods by using re-
sources that are currently
A. can only produce more consumer goods by produc- idle
ing fewer capital goods.
B. can only produce more capital goods by producing
fewer consumer goods.
, Econ 202 Hayes Quiz answers & Mid-Term
Study online at https://quizlet.com/_dsgeef
C. can produce more of both consumer goods and
capital goods by using resources that are currently
idle.
D. must improve its technology to produce more out-
put.
16. Broadly defined, competition involves independently acting
buyers and sellers and
A. private property and freedom of expression. freedom to enter or leave
B. independently acting buyers and sellers and free- markets
dom to enter or leave markets.
C. increasing opportunity costs and diminishing mar-
ginal utility.
D. capital goods and division of labor.
17. The law of demand states that, other things equal, price and quantity de-
manded are inversely re-
A. price and quantity demanded are inversely related. lated
B. the larger the number of buyers in a market, the
lower will be product price.
C. price and quantity demanded are directly related.
D. consumers will buy more of a product at high prices
than at low prices.
18. An increase in quantity supplied might be caused by false
an increase in production costs.
True/False
19. A government tax per unit of output reduces supply. true
True/False
20. true
