ECON 1100 LATEST EXAM 1 REVIEW
2025 WITH MULTIPLE CHOICE
QUESTIONS AND DETAILED SOLVED
SOLUTIONS ALREADY GRADED A+
AND 100% GUARANTEE PASS
Incorrectly concluding that because tax reform measures
benefit some individuals, the
measures are also beneficial for the economy as a whole is an
example of the:
a. post hoc fallacy (association-causation issue).
b. fallacy of division.
c. fallacy of false cause.
d. fallacy of composition. - THE CORRECT ANSWER-fallacy of
composition.
Which of the following is not an example of the factor of
production or economic resource referred to as capital?
a. An office building
b. Computers used by a tax preparation business
c. Lawn mowers owned by a landscaping firm
d.Money used to start a new business - THE CORRECT ANSWER-
Money used to start a new business
,The opportunity cost of attending school is:
a. the same for all people.
b. highest for people who gave up good jobs to attend school.
c. highest for people who continue to work while attending
school.
d. equal to the tuition charged by each school. - THE CORRECT
ANSWER-highest for people who gave up good jobs to attend
school.
A command economy is characterized by:
a. decentralized decisions about how to allocate resources.
b. government ownership or control of most resources.
c. voluntary exchange and incentives to exchange.
d. efficient allocation of scarce resources. - THE CORRECT ANSWER-
government ownership or control of most resources.
The business sector sells goods and services in the product
market in order to generate
_____, which then creates _____ for the household sector.
a. costs; revenue
b. revenue; income
c. profit; costs
d. costs; profit - THE CORRECT ANSWER-revenue; income
A country experiences a trade deficit when:
a. the value of exports exceeds the value of imports.
,b. some of the goods and services produced in the business
sector are exported.
c. the value of imports exceeds the value of exports.
d. some of the goods and services purchased by the household
sector are imported. - THE CORRECT ANSWER-the value of imports
exceeds the value of exports.
A rightward shift of a production possibilities frontier (curve)
indicates that:
a. economic activity is declining.
b. economic growth has occurred.
c. opportunity costs are decreasing.
d. opportunity costs are constant. - THE CORRECT ANSWER-economic
growth has occurred.
Protectionist policies are designed to:
a. restrict imports so domestic consumers are able to pay lower
prices.
b. increase imports so domestic consumers are able to pay
lower prices.
c. restrict imports so it is easier for domestic firms to compete
with foreign firms.
d. increase imports so it is easier for domestic firms to compete
with foreign firms. - THE CORRECT ANSWER-restrict imports so it is
easier for domestic firms to compete with foreign firms.
Two parties can enjoy gains from trade by specializing in the
activities for which:
, a. an absolute advantage exists.
b. a comparative advantage exists.
c. an unlimited market exists.
d. a stratified market exists. - THE CORRECT ANSWER-a comparative
advantage exists.
If country A can produce coffee at a lower opportunity cost than
country B, then:
a. country A has an absolute advantage in the production of
coffee.
b. country B has an absolute advantage in the production of
coffee.
c. country A has a comparative advantage in the production of
coffee.
d.country B has a comparative advantage in the production of
coffee. - THE CORRECT ANSWER-country A has a comparative
advantage in the production of coffee.
According to the law of demand, an increase in the price of
personal computers will,
ceteris paribus, lead to:
a. an increase in the demand for personal computers.
b. a decrease in the demand for personal computers.
c. an increase in the quantity demanded of personal computers.
d. a decrease in the quantity demanded of personal computers. -
THE CORRECT ANSWER-a decrease in the quantity demanded of
personal computers.
2025 WITH MULTIPLE CHOICE
QUESTIONS AND DETAILED SOLVED
SOLUTIONS ALREADY GRADED A+
AND 100% GUARANTEE PASS
Incorrectly concluding that because tax reform measures
benefit some individuals, the
measures are also beneficial for the economy as a whole is an
example of the:
a. post hoc fallacy (association-causation issue).
b. fallacy of division.
c. fallacy of false cause.
d. fallacy of composition. - THE CORRECT ANSWER-fallacy of
composition.
Which of the following is not an example of the factor of
production or economic resource referred to as capital?
a. An office building
b. Computers used by a tax preparation business
c. Lawn mowers owned by a landscaping firm
d.Money used to start a new business - THE CORRECT ANSWER-
Money used to start a new business
,The opportunity cost of attending school is:
a. the same for all people.
b. highest for people who gave up good jobs to attend school.
c. highest for people who continue to work while attending
school.
d. equal to the tuition charged by each school. - THE CORRECT
ANSWER-highest for people who gave up good jobs to attend
school.
A command economy is characterized by:
a. decentralized decisions about how to allocate resources.
b. government ownership or control of most resources.
c. voluntary exchange and incentives to exchange.
d. efficient allocation of scarce resources. - THE CORRECT ANSWER-
government ownership or control of most resources.
The business sector sells goods and services in the product
market in order to generate
_____, which then creates _____ for the household sector.
a. costs; revenue
b. revenue; income
c. profit; costs
d. costs; profit - THE CORRECT ANSWER-revenue; income
A country experiences a trade deficit when:
a. the value of exports exceeds the value of imports.
,b. some of the goods and services produced in the business
sector are exported.
c. the value of imports exceeds the value of exports.
d. some of the goods and services purchased by the household
sector are imported. - THE CORRECT ANSWER-the value of imports
exceeds the value of exports.
A rightward shift of a production possibilities frontier (curve)
indicates that:
a. economic activity is declining.
b. economic growth has occurred.
c. opportunity costs are decreasing.
d. opportunity costs are constant. - THE CORRECT ANSWER-economic
growth has occurred.
Protectionist policies are designed to:
a. restrict imports so domestic consumers are able to pay lower
prices.
b. increase imports so domestic consumers are able to pay
lower prices.
c. restrict imports so it is easier for domestic firms to compete
with foreign firms.
d. increase imports so it is easier for domestic firms to compete
with foreign firms. - THE CORRECT ANSWER-restrict imports so it is
easier for domestic firms to compete with foreign firms.
Two parties can enjoy gains from trade by specializing in the
activities for which:
, a. an absolute advantage exists.
b. a comparative advantage exists.
c. an unlimited market exists.
d. a stratified market exists. - THE CORRECT ANSWER-a comparative
advantage exists.
If country A can produce coffee at a lower opportunity cost than
country B, then:
a. country A has an absolute advantage in the production of
coffee.
b. country B has an absolute advantage in the production of
coffee.
c. country A has a comparative advantage in the production of
coffee.
d.country B has a comparative advantage in the production of
coffee. - THE CORRECT ANSWER-country A has a comparative
advantage in the production of coffee.
According to the law of demand, an increase in the price of
personal computers will,
ceteris paribus, lead to:
a. an increase in the demand for personal computers.
b. a decrease in the demand for personal computers.
c. an increase in the quantity demanded of personal computers.
d. a decrease in the quantity demanded of personal computers. -
THE CORRECT ANSWER-a decrease in the quantity demanded of
personal computers.
