🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
11
answers
0
watching
53
views
23 Nov 2019

Question 1

  1. The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a

    marginal statement.

    ceteris paribus statement.

    macroeconomic statement.

    normative statement.

    positive statement.

1 points

Question 2

  1. Which of the following is a normative statement?

    An increase in the supply of computers has caused computer prices to fall.

    Hurricanes strike mainly Florida and North Carolina.

    Recessions lead to increases in the unemployment rate.

    Flood victims should pay for their own rebuilding.

    When the price of kiwi fruit increases, fewer people eat kiwi fruit.

1 points

Question 3

  1. In the circular flow model, goods and services are bought and sold in the

    financial market.

    government market.

    monetary flows.

    resource/factor market.

    product market.

1 points

Question 4

  1. A statement that "All children should receive free health care" is an example of what kind of statement?

    a positive statement

    a natural experiment statement

    a fair statement

    a statement on the margin

    a normative statement

1 points

Question 5

  1. Scarcity

    applies only to people living in poverty.

    used to exist everywhere but has been eliminated in advanced economies.

    is the inability to satisfy all our wants.

    is not something that affects very rich people.

1 points

Question 6

  1. Which of the following statements is a positive statement?

    We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate.

    There should be a computer in every elementary school classroom.

    Too many people are unemployed.

    Our country needs to increase military spending.

    Online shopping increased by 50 percent this Christmas season.

1 points

Question 7

  1. The tools, skills, and equipment used to produce a good or service is called

    captial.

    labor.

    entrepreneural skills and ability.

    land or natural resources.

1 points

Question 8

  1. Scarcity requires that we

    make choices about what goods and services to produce.

    produce efficiently.

    learn to limit our wants.

    have the most rapid economic growth possible.

    have unlimited resources.

1 points

Question 9

  1. In the circular flow model, labor is bought and sold in the

    government market.

    product market.

    monetary flows.

    financial market.

    resource/factor market.

1 points

Question 10

  1. Which branch of economics studies the decisions of individual consumers and individual firms?

    marginal economics

    normative economics

    macroeconomics

    positive economics

    microeconomics

Watch
11
answers
0
watching
53
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Jamar Ferry
Jamar FerryLv2
4 Jun 2019
Get unlimited access
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

1. The following table provides the quantity of fish and coconuts that each individual can catch or gather in one hour.

           Coconuts Fish
Adam         6        2
Friday        6        4

a. Who has the absolute advantage in catching fish?
b. What is Friday's opportunity cost of gathering one coconut?
c. Who has the comparative advantage in catching fish?

2. Classify each statement as either a normative economic statement or a positive economic statement.
a. As a person consumes more and more of a good, marginal utility declines.
b. The United States has the best health care system in the world.

3. Consider the market for the Apple iPod, a normal good, for the month of September. Record in the following table how the following event would affect the market for an iPod. Use the words increase, decrease, unchanged, and uncertain.

Event Supply Demand Equilibrium Price Equilibrium Quantity {this is the table}

There is a technological advance in the manufacture of an iPod.

4. You own an electronics company that supplies to local businesses. In a typical month, you sell 200 Dell laptops and 200 HPlaptops. HP estimates the price elasticity of demand for their laptops to be -1.5. Dell estimates that the cross-price elasticity of demand between their laptop computers and HP laptops is 0.80 (Monday's lecture will help you answer this part of the question). This month HP lowered the price of their computers by 5 percent. Based on this information, what would expect to happen to your sales of HP and Dell computers? (State whether this change is an increase or decrease and give the percentage change.)

HP _____________ of ______________%

Dell ______________ of ____________%

Given your answers above, estimate the number of HP and Dell computers you will sell this month.

HP:_______________ Dell:_____________________

Representative multiple-choice questions.

5. If there is a surplus of a product, its price:
a. is in equilibrium.
b. is below the equilibrium level.
c. will rise in the near future.
d. is above the equilibrium level.

6. Suppose that steak and potatoes are complements. Then, other things being equal, an increase in the supply of steak will lower its price and:
a. increase the demand for potatoes and increase the price of potatoes.
b. increase the demand for potatoes and decrease the price of potatoes.
c. decrease the demand for potatoes and increase the price of potatoes.
d. decrease the demand for potatoes and decrease the price of potatoes.

1. According to the law of demand, an increase in the price of a good causes Select one:

a. a downward movement along the demand curve for that good.

b. a rightward shift of the demand curve for that good.

c. an upward movement along the demand curve for that good.

d. a leftward shift of the demand curve for that good.

2.The relative price of a textbook is

Select one:

a. the amount it cost to make the textbook.

b. the money price of the textbook divided by the money price of some other good.

c. what the author earned for writing the textbook.

d. the price of the textbook compared with what students think it should cost.

3.Which of the following best represents the law of demand?

Select one:

a. As the price of good increases, the quantity demanded of that good decreases.

b. As the demand for a good increase, the price of that good increases.

c. As the price of a good decrease, the demand curve for that good shifts to the right.

d. As the price of a good decrease, the demand for the good increases.

4. The absolute price of a good is its

Select one:

a. subjective price.

b. money price.

c. relative price.

d. projected price.

5. The fact that when the price of a good goes up, people buy less of it is known as the

Select one:

a. law of demand.

b. concept of market equilibrium.

c. need for inferior goods.

d. law of supply.

6.The price of a commodity in terms of another commodity is

Select one:

a. the law of demand.

b. the money price.

c. a substitute.

d. the relative price.

7.Other things being equal, an increase in the price of a good leads to an increase in the amount produced. This is known as

Select one:

a. the law of supply.

b. the law of demand.

c. ceteris paribus.

d. equilibrium.

8.he direct relationship between changes in price and changes in quantity supplied is

Select one:

a. shown by a shift in the supply curve.

b. the law of relative production.

c. the law of supply.

d. a change in supply.

9. The law of supply states that other things being equal,

Select one:

a. supply creates its demand.

b. supply will increase if productivity increases.

c. supply will increase to meet demand if demand increases.

d. as price increases, quantity supplied increases.

10. a price increase will lead to an increase in quantity supplied. This statement is

Select one:

a. a normative statement.

b. untrue always.

c. the law of supply.

d. the law of demand.

11.All of the following will cause a shift in the supply of jeans EXCEPT

Select one:

a. an increase in the cost of producing jeans.

b. a per-unit government subsidy on the production of jeans.

c. a decrease in the number of jean manufacturers.

d. a decrease in the prices of jeans.

12.An increase in the price of steel to producers of refrigerators will cause

Select one:

a. the demand for refrigerators to decrease.

b. the supply curve for refrigerators to shift left.

c. the quantity demanded to feel to increase.

d. the quantity supplied of refrigerators to increase.

Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the

a.

forgone working or partying, depending on which was your next best choice.
b.

forgone work.
c.

forgone working and partying.
d.

test because you are taking it.

1 points

QUESTION 2

A trend is

a.

a measure of closeness on a scatter diagram.
b.

a general tendency for a variable to rise or fall.
c.

the maximum value of a variable.
d.

the difference between the maximum value of a variable and the minimum value of the variable.

1 points

QUESTION 3

A time-series graph measures

a.

time on the y-axis and the variable or variables in which we are interested on the x-axis.
b.

time on the x-axis and the variable or variables in which we are interested on the y-axis.
c.

the value of one variable against the value of another variable.
d.

the value of an economic variable for different groups in a population at a point in time.

1 points

QUESTION 4

Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?

a.

Why will we offer health care?
b.

How will health care be produced?
c.

For whom will health care be produced?
d.

What type of health care will be produced and in what quantity?

1 points

QUESTION 5

As a shoe factory adds more workers, shoe production grows, reaches a maximum, and then shrinks. In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis, the relationship between the number of workers and the number of shoes starts as ________ and then, after the maximum point, is ________.

a.

positive; negative
b.

negative; positive
c.

linear; negative
d.

positive; linear

1 points

QUESTION 6

Microeconomics includes the study of the

a.

choices made by individuals and businesses.
b.

recessions and inflation in the global economy.
c.

aggregate effects on the national economy.
d.

reasons why the government changes interest rates.

1 points

QUESTION 7

When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly answers the ________ question.

a.

when
b.

for whom
c.

how
d.

what

1 points

QUESTION 8

Proponents of cuts in income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that

a.

the opportunity cost of working is negative.
b.

the marginal cost of each additional work hour is not important to most workers.
c.

workers are irrational.
d.

workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work.

1 points

QUESTION 9

A choice made by comparing all relevant alternatives systematically and incrementally is

a.

an opportunity cost.
b.

a benefit.
c.

a sunk cost.
d.

a choice on the margin.

1 points

QUESTION 10

A normative statement

i. can be tested as to whether it is true or false.

ii. is considered negative.

iii. depends on a person's values.

a.

i, ii, and iii
b.

iii only
c.

i and iii
d.

ii and iii

1 points

QUESTION 11

Normative statements

i. describe how the world is.

ii. describe how the world ought to be.

iii. depend on people's values and cannot be tested.

a.

iii only.
b.

i only.
c.

ii and iii.
d.

ii only.

1 points

QUESTION 12

In order to determine whether to major in economics, a rational individual compares the ________ of the decision.

a.

positive benefits and normative costs
b.

normative benefits and positive costs
c.

marginal benefit and marginal cost
d.

opportunity cost and the sunk cost

1 points

QUESTION 13

If x increases whenever y decreases, then x and y are

a.

positively related.
b.

negatively related.
c.

not related.
d.

related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.

1 points

QUESTION 14

Rational choice

a.

is what you must give up get what you want.
b.

is made by comparing different incentives.
c.

making the choice.
d.

provides the answer to only the "how" question.

1 points

QUESTION 15

Scarcity results from the fact that

a.

choices made in self-interest rare not always in the social interest.
b.

not all goals are desirable.
c.

people's wants exceed the resources available to satisfy them
d.

we cannot answer the major economic questions.

1 points

QUESTION 16

When Delta decides to quit flying to Lithuania, it directly answers the ________ question.

a.

what
b.

why
c.

for whom
d.

how

1 points

QUESTION 17

A normative statement

a.

says what is currently believed about the way the world operates.
b.

depends on someone's values.
c.

cannot use the word "should."
d.

must be tested to determine if it is correct.

1 points

QUESTION 18

Which of the following statements best describes the study of economics? Economics studies how

a.

to organize production so that scarcity does not occur.
b.

to create incentives so that scarcity does not exist.
c.

firms make profits.
d.

we make choices in the face of scarcity.

1 points

QUESTION 19

Which of the following best defines economics?

a.

Economics teaches how to limit our wants.
b.

Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.
c.

Economics helps you earn as much money as possible.
d.

Economics studies how to choose the best alternative when coping with scarcity.

1 points

QUESTION 20

In economics, cost is ________, and benefit is ________.

a.

the amount of money that you pay for something; the amount of money that someone else is willing to pay you
b.

what you are willing to pay on the margin; what the government pays you when you are unemployed or retired
c.

what you must give up to get something; what you are willing to give up to get it
d.

the amount of money that you pay on the margin; the amount of money that you receive on the margin

1 points

QUESTION 21

If Jessie studies economics for two hours instead of going to the movies with her friends, then

a.

the opportunity cost of studying is the missed movie.
b.

Jessie is ignoring a sunk cost
c.

Jessie is not responding to any incentives.
d.

Jesse definitely is making a rational choice.

1 points

QUESTION 22

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing.

a.

The $80 price of skiing is a sunk cost and so did not affect Adam's decision.
b.

He loses a total of $120 per day, so his decision is irrational.
c.

His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost.
d.

Adam's lost $40 per day in wages is a sunk cost and so did not affect his decision.

1 points

QUESTION 23

If a curve falls and then rises, it

a.

has a maximum.
b.

has a linear relationship.
c.

has a minimum.
d.

has a constant slope relationship.

1 points

QUESTION 24

In 2003, Michael Jordan decided to retire from professional basketball. Which of the following was an opportunity cost of his decision?

a.

the avoidance of pain and injury from playing one more year
b.

the time he could spend with his family while retired
c.

the lost salary from playing one more year
d.

the value of new employment opportunities that would await him

1 points

QUESTION 25

Which of the following statements is a normative statement?

a.

Military spending as a percent of government spending decreased by 5 percent in the 1990s.
b.

Every American household should have health care insurance coverage.
c.

Welfare reform has decreased the amount the government spends on welfare.
d.

The price of computers fell last year.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in