Eco 415 final exam
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This document contains an 8 question multiple choice quiz about concepts in economics including: - Production possibilities curves - Opportunity cost and the principle that cost is what is sacrificed to get something - Demand curves and the law of demand, which states quantity demanded increases as price falls - Supply curves and the law of supply, which states firms supply more as the price of a product rises The questions test understanding of key economic graphs and principles taught in an ECO 415 final exam.
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South UniversityVirginia Beach CampusECO2071Name ________.docx
South University
Virginia Beach Campus
ECO2071
Name: ____________________________________________
Score: ______________
Select the CORRECT answer to each question. Each question is worth 2 points.
1. Economics is the study of how society manages its
a.
limited wants and unlimited resources.
b.
unlimited wants and unlimited resources.
c.
limited wants and limited resources.
d.
unlimited wants and limited resources.
2. The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that
a.
equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.
b.
equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.
c.
equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.
d.
equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.
3. Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright 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.
4. A direct or positive relationship exists between a country's
a.
productivity and its standard of living.
b.
amount of government spending and its productivity.
c.
total population and its average citizen’s income.
d.
rate of population growth and the extent of its trade with other countries.
5. Economists, like mathematicians, physicists, and biologists,
a.
make use of the scientific method.
b.
try to address their subject with a scientist’s objectivity.
c.
devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.
d.
All of the above are correct.
6. Which of the following is an example of a positive, as opposed to normative, statement?
a.
Inflation is more harmful to the economy than unemployment is.
b.
If welfare payments increase, the world will be a better place.
c.
Prices rise when the government prints too much money.
d.
When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.
7. Which of the following is an example of a normative, as opposed to positive, statement?
a.
Universal health care would be good for U.S. citizens.
b.
An increase in the cigarette tax would cause a decrease in the number of smokers.
c.
A decrease in the minimum wage would decrease unemployment.
d.
A law requiri.
3Final ExaminationBAM 223 Principles of EconomicsM.docx
3
Final Examination
BAM 223 Principles of Economics
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
An economic ________ is a simplified version of some aspect of economic life used to analyze 1.
an economic issue.
variablea.
marketb.
modelc.
trade-off d.
Scenario 1-2
Suppose a hat manufacturer currently sells 2,000 hats per week and makes a profit of
$5,000 per week. The plant owner observes, “Although the last 300 hats we produced and
sold increased our revenue by $1,000 and our costs by $1,100, we are still making an
overall profit of $5,000 per week so I think we’re on the right track. We are producing the
optimal number of hats.”
Refer to Scenario 1-2. Had the firm not produced and sold the last 300 hats, would its profit 2.
be higher or lower, and if so by how much?
Its profit will be $1,100 higher. a.
Its profit will be $1,000 lower. b.
Its profit will be $100 lower.c.
Its profit will be $100 higher. d.
The term market in economics refers to: 3.
a place where money changes hands.a.
a legal institution where exchange can take place.b.
a group of buyers and sellers of a product and the arrangement by which they come c.
together to trade.
an organization which sells goods and services. d.
Scenario 1-3
Suppose a t-shirt manufacturer currently sells 5,000 t-shirts per week and makes a profit of
$10,000 per week. A manager at the plant observes, “Although the last 400 t-shirts we
produced and sold increased our revenue by $4,000 and our costs by $4,800, we are still
making an overall profit of $10,000 per week so I think we’re on the right track. We are
producing the optimal number of t-shirts.”
Refer to Scenario 1-3. Using marginal analysis terminology, what is another economic term 4.
for the incremental cost of producing the last 400 t-shirts?
marginal costa.
explicit costb.
operating costc.
Any of the above terms are correct.d.
4
Final Examination
BAM 223 Principles of Economics
Suppose the U.S. government encouraged new teachers to take jobs in underperforming 5.
schools by paying the new teachers a $20,000 bonus. These teachers would be exemplifying
the economic idea that:
people respond to economic incentivesa.
people are rationalb.
optimal decisions are made at the marginc.
equity is more important than efficiency d.
Dr. Goldfinger decides to invest in companies which he believes can “improve the 6.
productivity and efficiency” of health care services. How can Dr. Goldfinger strive to achieve
this productive efficiency?
by investing in companies that produce goods and services at the lowest possible costa.
by investing in companies that produce up to the point where the marginal benefit of the b.
last unit produced is equal to the marginal cost of producing it.
by investing in companies that fairly distribute their products and servicesc.
by investing in companies that produce goods and services based on consumer d.
preferences ...
Exam1. Economics is aa. social science that studies g.docx
Exam
1. Economics is a:
a. social science that studies goods with no alternative uses.
b. natural science that studies goods with no alternative uses.
c. social science concerned chiefly with how people choose among alternatives.
d. social science concerned chiefly with reasons why society has unlimited resources.
2. Scarcity exists when:
a. a choice must be made among two or more alternatives.
b. we face the notion of "all other things unchanged."
c. countries and people find themselves facing poverty.
d. the notions of normative economics come into play.
3. A free good is:
a. also a scarce good.
b. a relatively abundant good.
c. a good with no opportunity cost.
d. a good with relatively low opportunity cost.
4. Suppose that voters in your community pass a one-cent sales tax increase to fund education, knowing full well they will have to forgo other goods they typically consume. This primarily addresses the economic question of:
a. How will each good be produced?
b. For whom shall the goods be produced?
c. Why will the resources be used to produce goods?
d. What goods and services should a society produce?
5. A factor of production that has been produced for use in the production of other goods and services is:
a. labor.
b. money.
c. capital.
d. natural resources.
6. The textbook classifies technology as _______ and entrepreneurs as _______ .
a. knowledge; persons who seek profit by finding new ways to organize factors of production
b. capital; labor
c. labor skills; capital
d. a factor of production; a factor of production
7. The production possibilities curve represents the fact that:
a. the economy will automatically end up at full employment.
b. an economy's productive capacity increases proportionally with its population.
c. if all resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
d. economic production possibilities have no limit.
8. An economy is said to have a comparative advantage in producing a particular good if it:
a. can produce more of all goods than another economy.
b. can produce less of all goods than another economy.
c. has the highest cost for producing that good.
d. has the lowest cost for producing that good.
9. A negative relationship between the quantity demanded and price is called the law of ______.
a. demand
b. diminishing marginal returns
c. market clearing
d. supply
10. If people demand more of product A when the price of B falls, then A and B are:
a. not related.
b. substitutes.
c. complements.
d. inferior.
11. The primary difference between a change in demand and a change in the quantity demanded is:
a. a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve.
b. a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve.
c. both a change i ...
The Effect of Social Media on Children and AdolescentsAbstract.docx
The Effect of Social Media on Children and Adolescents
Abstract
One of the most common activities undertaken by children and adolescents is the use of the social media. This paper examines the social media’s positive and negative effects on children and adolescents. It is an undisputable fact that young people interact with each other through the social media, and it therefore improves children’s interactions with friends and family members, as they are able to maintain communications with them even though they may not see each other face to face (Patrut & Patrut, 150). The social media also enables them to have a wider perspective on issues, as they are able to view other people’s perspectives on certain issues. As a result, the children and adolescents are able to express their opinions, and exchange ideas, something that enhances their self-expression. Nevertheless, the social media also has negative influences on the young minds, some which go on to affect them even in their adult lives. For instance, (Margalit, 188) discusses that the social media exposes young people to harmful content that might be obscene or inappropriate in nature. Additionally, the social media may occupy too much of a child’s time, making them lose interest in other social activities. This could lead to a deterioration of their mental and physical health in case of addiction to the social media. The implications of these findings suggest that the social media contains positive attributes, but caution should be taken when children to prevent negative influences on children.
Works Cited
Margalit, Malka. Lonely children and adolescents: Self-perceptions, social exclusion, and hope. Springer Science & Business Media, 2010.
Patrut, Monica, and Bogdan Patrut, eds. Social media in higher education: Teaching in Web 2.0. IGI Global, 2013.
1. The demand for a product is the amount that
a. buyers purchase in the market
b. buyers are willing to purchase at a given price
c. sellers are willing to sell at a particular price
d. buyers are willing and able to purchase at alternative prices
e. buyers are able to purchase at a specific price
2. The law of demand says that the lower the price of a good, other things constant,
a. the smaller the demand for that good
b. the larger the demand for that good
c. the smaller the quantity demanded of that good
d. the larger the quantity demanded of that good
e. the smaller the real income of consumers and the lower the quantity demanded of that good
3. The law of demand assumes that as the price of a good increases,
a. people recognize that its price may be even higher in the future, so they buy now rather than later
b. consumers tend to shift their purchases to relatively cheaper substitutes
c. people will buy less of it in the hope that the good will be cheaper in the future
d. the consumer’s money income increases, and he or she is less able to buy all goods, including the
good who ...
Instructions use a RED scantron and bubble in your answers. T.docx
Instructions: use a RED scantron and bubble in your answers. Turn in your
scantron along with your typed answers to the written portion of the exam.
1. When private ownership rights are well-defined and enforced, owners
a. can ignore the wishes of others, without bearing the cost.
b. have little incentive to take care of things.
c. can do anything they want with their property.
d. can be held accountable for damage to others through misuse of their
property.
2. Criteria for rationing goods and resources must be established because of
a. the law of comparative advantage.
b. the use of capitalism as a form of economic organization.
c. the inability of politicians to develop efficient forms of economic organization.
d. scarcity imposed by nature.
3. When we say the cost of production is $50, what is meant according to economic
principles?
a. A firm had to spend $50 in order to purchase the resources required to make the
good or service.
b. A value to society of this good or service was $50, so its cost is said to be $50.
c. A firm could have made something else with the resources that was worth $50 in
the market.
d. $50 represents the maximum willingness to pay from market participants.
4. For markets to be efficient in production, what must be true?
e. All profitable opportunities must be exhausted
f. No firm is doing something where MC>MB
g. All of the above
h. None of the above
Use the production possibilities data below for Honduras and Nicaragua to answer the
following question(s).
Table 2-2
Honduras
Oranges Apples
0 16
1 12
2 8
3 4
4 0
Nicaragua
Oranges Apples
0 8
1 6
2 4
3 2
4 0
5. Refer to Table 2-2. Which of the following is correct?
a. Honduras has the comparative advantage in both goods.
b. Nicaragua has the comparative advantage in oranges.
c. Honduras has the comparative advantage in oranges.
d. It would be impossible for Honduras and Nicaragua to gain from trade.
Figure 2-2
6. Which of the following would most likely cause the production possibilities curve for
breadfruit and fish to shift outward from AA to BB in Figure 2-2?
a. a decrease in the labor force of the country
b. a sudden change in consumer preferences for more fish and less breadfruit
c. a major technological advance
d. a decrease in the capital stock
Figure 2-10
7. Refer to Figure 2-10. A movement from point C to point D could be caused by
a. unemployment.
b. a decrease in society's preference for bananas.
c. fewer resources available for production of bananas.
d. All of the above are correct.
8. Which of the following results in more elastic demand?
a. Fewer substitutes
b. Less time in which to respond to a price spike
c. A higher proportion of income spent on the good
d. Good considered a luxury good rather than a necessity
9. Two points on a demand curve are P=60,Q=10 and P=30,Q=30. What is the elasticit.
AuthorsPublisherR. Glenn Hubbard and Anthony Patrick.docx
Authors:
Publisher:
R. Glenn Hubbard and Anthony Patrick O’Brien
Pearson/Prentice Hall
925 N. Spurgeon Street, Santa Ana, CA 92701 Phone: 714-547-9625 Fax: 714-547-5777
04/09
BAM223
PRINCIPLES OF ECONOMICS
F
in
a
l E
xa
m
in
a
ti
o
n
Text: Essentials of Economics
2nd Edition, 2009
ISBN-13: 978-0-13-608623-9
ISBN-10: 013-608623-3
Final Examination
1
Principles of Economics
1) Every society faces economic tradeoffs. This means
a. producing more of one good means less of another good can be produced.
b. not everyone can have enough goods and services to survive.
c. some people live better than others do.
d. society’s output cannot be made available to all.
2) Which of the following statements is false?
a. Tradeoffs do not apply when consumers purchase a product for which there is
excess supply, such as a stock clearance sale.
b. Every individual, no matter how rich or poor, is faced with making tradeoffs.
c. Anytime you have to decide which action to take you are facing an economic
tradeoff.
d. Economics is a social science that studies the tradeoffs we are forced to
make because of scarcity.
3) Which of the following is not an example of an economic tradeoff that a firm
has to make?
a. whether it should produce more of its product.
b. whether it is cheaper to produce with more machines or with more workers.
c. whether or not consumers will buy its products .
d. whether to outsource the production of a good or service
4) How are the fundamental economic decisions determined in Cuba?
a. Primarily, the government decides because Cuba is a centrally planned
economy.
b. These decisions are made by the country’s elders who have had much experi-
ence in answering these questions.
c. Individuals, firms, and the government interact in a market to make these
economic decisions.
d. The United Nations decides because Cuba is a developing economy.
5) Which of the following correctly describes the relationship between economic
efficiency and economic equity?
a. They are both automatically achieved in a free market economy.
b. There is no conflict between the two goals.
c. There is often a trade-off between the two.
d. They always call for opposite outcomes.
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
2
Final Examination
Principles of Economics
6) Which of the following statements best characterizes the disagreements be-
tween Paul Samuelson and Jagdish Bhagwati in their debate about outsourc-
ing?
a. Their disagreements are grounded in normative economic analysis. They dis-
agree over how to interpret the relevant economic statistics.
b. Their disagreements are grounded in positive economic analysis. They dis-
agree about the relevant economic statistics used in the model.
c. Their disagreements are grounded ...
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> Leveraging large amounts of data to advance patient-centric treatment
> Pooling data from multiple sources to tailor treatments
> Understanding the real value of big data
> Case studies from various therapeutic areas
> Data security
Empresas en la era de la colaboración
La Economía Colaborativa es un nuevo modelo económico que trae consigo grandes oportunidades de crecimiento a todas aquellas organizaciones que aprendan a colaborar con los distintos agentes de su ecosistema.
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Similar to Eco 415 final exam
South UniversityVirginia Beach CampusECO2071Name ________.docx
South University
Virginia Beach Campus
ECO2071
Name: ____________________________________________
Score: ______________
Select the CORRECT answer to each question. Each question is worth 2 points.
1. Economics is the study of how society manages its
a.
limited wants and unlimited resources.
b.
unlimited wants and unlimited resources.
c.
limited wants and limited resources.
d.
unlimited wants and limited resources.
2. The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that
a.
equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.
b.
equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.
c.
equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.
d.
equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.
3. Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright 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.
4. A direct or positive relationship exists between a country's
a.
productivity and its standard of living.
b.
amount of government spending and its productivity.
c.
total population and its average citizen’s income.
d.
rate of population growth and the extent of its trade with other countries.
5. Economists, like mathematicians, physicists, and biologists,
a.
make use of the scientific method.
b.
try to address their subject with a scientist’s objectivity.
c.
devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.
d.
All of the above are correct.
6. Which of the following is an example of a positive, as opposed to normative, statement?
a.
Inflation is more harmful to the economy than unemployment is.
b.
If welfare payments increase, the world will be a better place.
c.
Prices rise when the government prints too much money.
d.
When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.
7. Which of the following is an example of a normative, as opposed to positive, statement?
a.
Universal health care would be good for U.S. citizens.
b.
An increase in the cigarette tax would cause a decrease in the number of smokers.
c.
A decrease in the minimum wage would decrease unemployment.
d.
A law requiri.
3Final ExaminationBAM 223 Principles of EconomicsM.docx
3
Final Examination
BAM 223 Principles of Economics
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
An economic ________ is a simplified version of some aspect of economic life used to analyze 1.
an economic issue.
variablea.
marketb.
modelc.
trade-off d.
Scenario 1-2
Suppose a hat manufacturer currently sells 2,000 hats per week and makes a profit of
$5,000 per week. The plant owner observes, “Although the last 300 hats we produced and
sold increased our revenue by $1,000 and our costs by $1,100, we are still making an
overall profit of $5,000 per week so I think we’re on the right track. We are producing the
optimal number of hats.”
Refer to Scenario 1-2. Had the firm not produced and sold the last 300 hats, would its profit 2.
be higher or lower, and if so by how much?
Its profit will be $1,100 higher. a.
Its profit will be $1,000 lower. b.
Its profit will be $100 lower.c.
Its profit will be $100 higher. d.
The term market in economics refers to: 3.
a place where money changes hands.a.
a legal institution where exchange can take place.b.
a group of buyers and sellers of a product and the arrangement by which they come c.
together to trade.
an organization which sells goods and services. d.
Scenario 1-3
Suppose a t-shirt manufacturer currently sells 5,000 t-shirts per week and makes a profit of
$10,000 per week. A manager at the plant observes, “Although the last 400 t-shirts we
produced and sold increased our revenue by $4,000 and our costs by $4,800, we are still
making an overall profit of $10,000 per week so I think we’re on the right track. We are
producing the optimal number of t-shirts.”
Refer to Scenario 1-3. Using marginal analysis terminology, what is another economic term 4.
for the incremental cost of producing the last 400 t-shirts?
marginal costa.
explicit costb.
operating costc.
Any of the above terms are correct.d.
4
Final Examination
BAM 223 Principles of Economics
Suppose the U.S. government encouraged new teachers to take jobs in underperforming 5.
schools by paying the new teachers a $20,000 bonus. These teachers would be exemplifying
the economic idea that:
people respond to economic incentivesa.
people are rationalb.
optimal decisions are made at the marginc.
equity is more important than efficiency d.
Dr. Goldfinger decides to invest in companies which he believes can “improve the 6.
productivity and efficiency” of health care services. How can Dr. Goldfinger strive to achieve
this productive efficiency?
by investing in companies that produce goods and services at the lowest possible costa.
by investing in companies that produce up to the point where the marginal benefit of the b.
last unit produced is equal to the marginal cost of producing it.
by investing in companies that fairly distribute their products and servicesc.
by investing in companies that produce goods and services based on consumer d.
preferences ...
Exam1. Economics is aa. social science that studies g.docx
Exam
1. Economics is a:
a. social science that studies goods with no alternative uses.
b. natural science that studies goods with no alternative uses.
c. social science concerned chiefly with how people choose among alternatives.
d. social science concerned chiefly with reasons why society has unlimited resources.
2. Scarcity exists when:
a. a choice must be made among two or more alternatives.
b. we face the notion of "all other things unchanged."
c. countries and people find themselves facing poverty.
d. the notions of normative economics come into play.
3. A free good is:
a. also a scarce good.
b. a relatively abundant good.
c. a good with no opportunity cost.
d. a good with relatively low opportunity cost.
4. Suppose that voters in your community pass a one-cent sales tax increase to fund education, knowing full well they will have to forgo other goods they typically consume. This primarily addresses the economic question of:
a. How will each good be produced?
b. For whom shall the goods be produced?
c. Why will the resources be used to produce goods?
d. What goods and services should a society produce?
5. A factor of production that has been produced for use in the production of other goods and services is:
a. labor.
b. money.
c. capital.
d. natural resources.
6. The textbook classifies technology as _______ and entrepreneurs as _______ .
a. knowledge; persons who seek profit by finding new ways to organize factors of production
b. capital; labor
c. labor skills; capital
d. a factor of production; a factor of production
7. The production possibilities curve represents the fact that:
a. the economy will automatically end up at full employment.
b. an economy's productive capacity increases proportionally with its population.
c. if all resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
d. economic production possibilities have no limit.
8. An economy is said to have a comparative advantage in producing a particular good if it:
a. can produce more of all goods than another economy.
b. can produce less of all goods than another economy.
c. has the highest cost for producing that good.
d. has the lowest cost for producing that good.
9. A negative relationship between the quantity demanded and price is called the law of ______.
a. demand
b. diminishing marginal returns
c. market clearing
d. supply
10. If people demand more of product A when the price of B falls, then A and B are:
a. not related.
b. substitutes.
c. complements.
d. inferior.
11. The primary difference between a change in demand and a change in the quantity demanded is:
a. a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve.
b. a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve.
c. both a change i ...
The Effect of Social Media on Children and AdolescentsAbstract.docx
The Effect of Social Media on Children and Adolescents
Abstract
One of the most common activities undertaken by children and adolescents is the use of the social media. This paper examines the social media’s positive and negative effects on children and adolescents. It is an undisputable fact that young people interact with each other through the social media, and it therefore improves children’s interactions with friends and family members, as they are able to maintain communications with them even though they may not see each other face to face (Patrut & Patrut, 150). The social media also enables them to have a wider perspective on issues, as they are able to view other people’s perspectives on certain issues. As a result, the children and adolescents are able to express their opinions, and exchange ideas, something that enhances their self-expression. Nevertheless, the social media also has negative influences on the young minds, some which go on to affect them even in their adult lives. For instance, (Margalit, 188) discusses that the social media exposes young people to harmful content that might be obscene or inappropriate in nature. Additionally, the social media may occupy too much of a child’s time, making them lose interest in other social activities. This could lead to a deterioration of their mental and physical health in case of addiction to the social media. The implications of these findings suggest that the social media contains positive attributes, but caution should be taken when children to prevent negative influences on children.
Works Cited
Margalit, Malka. Lonely children and adolescents: Self-perceptions, social exclusion, and hope. Springer Science & Business Media, 2010.
Patrut, Monica, and Bogdan Patrut, eds. Social media in higher education: Teaching in Web 2.0. IGI Global, 2013.
1. The demand for a product is the amount that
a. buyers purchase in the market
b. buyers are willing to purchase at a given price
c. sellers are willing to sell at a particular price
d. buyers are willing and able to purchase at alternative prices
e. buyers are able to purchase at a specific price
2. The law of demand says that the lower the price of a good, other things constant,
a. the smaller the demand for that good
b. the larger the demand for that good
c. the smaller the quantity demanded of that good
d. the larger the quantity demanded of that good
e. the smaller the real income of consumers and the lower the quantity demanded of that good
3. The law of demand assumes that as the price of a good increases,
a. people recognize that its price may be even higher in the future, so they buy now rather than later
b. consumers tend to shift their purchases to relatively cheaper substitutes
c. people will buy less of it in the hope that the good will be cheaper in the future
d. the consumer’s money income increases, and he or she is less able to buy all goods, including the
good who ...
Instructions use a RED scantron and bubble in your answers. T.docx
Instructions: use a RED scantron and bubble in your answers. Turn in your
scantron along with your typed answers to the written portion of the exam.
1. When private ownership rights are well-defined and enforced, owners
a. can ignore the wishes of others, without bearing the cost.
b. have little incentive to take care of things.
c. can do anything they want with their property.
d. can be held accountable for damage to others through misuse of their
property.
2. Criteria for rationing goods and resources must be established because of
a. the law of comparative advantage.
b. the use of capitalism as a form of economic organization.
c. the inability of politicians to develop efficient forms of economic organization.
d. scarcity imposed by nature.
3. When we say the cost of production is $50, what is meant according to economic
principles?
a. A firm had to spend $50 in order to purchase the resources required to make the
good or service.
b. A value to society of this good or service was $50, so its cost is said to be $50.
c. A firm could have made something else with the resources that was worth $50 in
the market.
d. $50 represents the maximum willingness to pay from market participants.
4. For markets to be efficient in production, what must be true?
e. All profitable opportunities must be exhausted
f. No firm is doing something where MC>MB
g. All of the above
h. None of the above
Use the production possibilities data below for Honduras and Nicaragua to answer the
following question(s).
Table 2-2
Honduras
Oranges Apples
0 16
1 12
2 8
3 4
4 0
Nicaragua
Oranges Apples
0 8
1 6
2 4
3 2
4 0
5. Refer to Table 2-2. Which of the following is correct?
a. Honduras has the comparative advantage in both goods.
b. Nicaragua has the comparative advantage in oranges.
c. Honduras has the comparative advantage in oranges.
d. It would be impossible for Honduras and Nicaragua to gain from trade.
Figure 2-2
6. Which of the following would most likely cause the production possibilities curve for
breadfruit and fish to shift outward from AA to BB in Figure 2-2?
a. a decrease in the labor force of the country
b. a sudden change in consumer preferences for more fish and less breadfruit
c. a major technological advance
d. a decrease in the capital stock
Figure 2-10
7. Refer to Figure 2-10. A movement from point C to point D could be caused by
a. unemployment.
b. a decrease in society's preference for bananas.
c. fewer resources available for production of bananas.
d. All of the above are correct.
8. Which of the following results in more elastic demand?
a. Fewer substitutes
b. Less time in which to respond to a price spike
c. A higher proportion of income spent on the good
d. Good considered a luxury good rather than a necessity
9. Two points on a demand curve are P=60,Q=10 and P=30,Q=30. What is the elasticit.
AuthorsPublisherR. Glenn Hubbard and Anthony Patrick.docx
Authors:
Publisher:
R. Glenn Hubbard and Anthony Patrick O’Brien
Pearson/Prentice Hall
925 N. Spurgeon Street, Santa Ana, CA 92701 Phone: 714-547-9625 Fax: 714-547-5777
04/09
BAM223
PRINCIPLES OF ECONOMICS
F
in
a
l E
xa
m
in
a
ti
o
n
Text: Essentials of Economics
2nd Edition, 2009
ISBN-13: 978-0-13-608623-9
ISBN-10: 013-608623-3
Final Examination
1
Principles of Economics
1) Every society faces economic tradeoffs. This means
a. producing more of one good means less of another good can be produced.
b. not everyone can have enough goods and services to survive.
c. some people live better than others do.
d. society’s output cannot be made available to all.
2) Which of the following statements is false?
a. Tradeoffs do not apply when consumers purchase a product for which there is
excess supply, such as a stock clearance sale.
b. Every individual, no matter how rich or poor, is faced with making tradeoffs.
c. Anytime you have to decide which action to take you are facing an economic
tradeoff.
d. Economics is a social science that studies the tradeoffs we are forced to
make because of scarcity.
3) Which of the following is not an example of an economic tradeoff that a firm
has to make?
a. whether it should produce more of its product.
b. whether it is cheaper to produce with more machines or with more workers.
c. whether or not consumers will buy its products .
d. whether to outsource the production of a good or service
4) How are the fundamental economic decisions determined in Cuba?
a. Primarily, the government decides because Cuba is a centrally planned
economy.
b. These decisions are made by the country’s elders who have had much experi-
ence in answering these questions.
c. Individuals, firms, and the government interact in a market to make these
economic decisions.
d. The United Nations decides because Cuba is a developing economy.
5) Which of the following correctly describes the relationship between economic
efficiency and economic equity?
a. They are both automatically achieved in a free market economy.
b. There is no conflict between the two goals.
c. There is often a trade-off between the two.
d. They always call for opposite outcomes.
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
2
Final Examination
Principles of Economics
6) Which of the following statements best characterizes the disagreements be-
tween Paul Samuelson and Jagdish Bhagwati in their debate about outsourc-
ing?
a. Their disagreements are grounded in normative economic analysis. They dis-
agree over how to interpret the relevant economic statistics.
b. Their disagreements are grounded in positive economic analysis. They dis-
agree about the relevant economic statistics used in the model.
c. Their disagreements are grounded ...
ECON 201 MicroeconomicsTextbook Assignment 1 Due Date Januar.docx
ECON 201: Microeconomics
Textbook Assignment 1
Due Date: January 20, 2016
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 1. Google has started a project to scan all books and make those that are not copyrighted available to people free of charge. Why is it important that only books without a copyright are available?
a.
If all books were scanned and available free of charge, copyright holders would face a positive incentive to continue writing and publishing books.
b.
If all books were scanned and available free of charge, copyright holders would face a negative incentive to continue writing and publishing books.
c.
If only copyrighted texts were scanned and available free of charge, copyright holders would face an indirect incentive to continue writing and publishing books.
d.
If only non-copyrighted books were scanned and available free of charge, copyright holders would face a negative incentive to continue writing and publishing books.
e.
If only non-copyrighted books were scanned and available free of charge, copyright holders would face an indirect incentive to continue writing and publishing books.
____ 2. In the area of many college campuses, parking spaces are often scarce. If these parking spaces have parking meters, which population described below would pay for parking?
a.
A population that is willing to take risks and believes that they will not be caught if they don’t place change in the meter
b.
A population that places a high opportunity cost on making sure they have change and placing change in the meter
c.
A population that is willing to take risks, believes that they will not be caught if they don’t place change in the meter, and disregards any possible $5 ticket for parking illegally
d.
A population that is unwilling to take risks and believes there is a high chance that they will not be caught if they don’t pay for parking
e.
A population that is unwilling to take risks, believes there is a high chance that they will be caught if they don’t pay their share, and places a high value on doing the “right” thing
____ 3. Kelly is an architect, and she is trying to decide whether to hire Mike, a draftsman, to assist with her work. Kelly could hire Mike at $20 per hour, but it would take him three times as long to complete a task as it takes Kelly. Kelly is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?
a.
Kelly should not hire Mike because it would be faster for her to do the work herself.
b.
Kelly should do the drafting work herself because she has the lower opportunity cost.
c.
Mike should be hired at the $20 per hour wage rate.
d.
Mike should be hired, but only if he is paid more than $30 per hour.
e.
Kelly should hire someone who earns minimum wage instead of Mike.
____ 4. In 2009, the federal government created a program called Cash for Clunkers whereby consumers could trade in a less efficient ...
test bank Microeconomics in Modules, 5e Paul Krugman, Robin Wells test bank.pdf
test bank for students
Name ID Class DayTime 1. TYPE your answe.docx
Name: ID: Class Day/Time:
1. TYPE your answers to each of the questions below. Cut and paste the
question when providing your answer. You do not need to cut and paste the
tables. If you need to include a graph, you may draw it in by hand if you
prefer.
2. The test is formatted so I can grade it faster. There are 3 sections for this
part of your midterm. Each section should be answered on one page (front
and back).
3. Make sure to included your ID number on each page. Just fill out the info in
the header.
4. You must turn in a printed copy to me by the deadline for your class: MW
classes on 3/9 and TuTh classes on 3/10.
Name: ID: Class Day/Time:
Section 1 (make your answers fit on 1 typed, double sided page)
Instructions: Based on what you learned in your book and in class, each of the
following statements is false in some way. Use economic principles and concepts to
explain why each statement is false. Use graphs and examples if you feel they will
add to your explanation. 1 point each question
1. Measles has become an epidemic here in Orange County. About 1 in 1000 people
will die after contracting the disease. Because this is such a high rate, health
officials in Orange County would be well advised to pay for anyone to get a
vaccination.
2. When prices fall, the best thing for suppliers to do is to produce more output to
try to protect profits from falling.
3. Because a steep demand curve indicates prices can increase quickly when the
quantity demanded rises only a little bit, steep demand curves represent goods
that are very elastic.
4. When price controls are implemented, one group wins at the expense of the other
group, but society as a whole doesn’t suffer. For instance, when you raise the
minimum wage, it simply represents a transfer from producers to workers, and
has no real effect on total economic activity.
5. In order to create more revenues for government, taxes should be implemented
on either wealthy individuals or on the luxury items they buy (i.e. jewelry,
yachts, stocks and bonds, expensive cars) because they can afford them the most.
Name: ID: Class Day/Time:
Section2 (make your answers fit on 1 typed, double sided page)
Use the table to answer questions 6-12. Assume that the demand and supply
relationships are linear between any two prices. For all questions, show some work
that explains how you arrived at your answer, or provide a written explanation.
Answers by themselves will not receive any credit.
P Qd Qs
12 0 52
10 20 48
8 30 44
6 40 40
4 44 30
2 48 20
0 52 0
6. What is the equilibrium price and quantity in the market? 1 point
7. What is the initial consumer surplus in the market? the initial producer surplus?
1 point
8. A tax of $2 per unit is imposed onto the sellers in this market. Construct the new
supply schedule and determine the new equilibrium price and quantity. If you
.
A graph…….a.can be used to show either a positive or neg.docx
A graph…….
a.
can be used to show either a positive or negative relationship between two variables.
b.
can illustrate both demand and supply.
c.
is used because it is impossible to describe any economic relationship verbally.
d.
all of the above.
e.
both a) and b) are correct.
2.
If less people buy coffee as income declines, then coffee is
a.
a complementary good.
b.
a substitute good.
c.
a normal good.
d.
an inferior good.
3.
Consider that when the price of a good increases, like hamburgers people buy less of that good and less of a complementary good such as ketchup.
Therefore if the price of hamburgers increases,
the quantity demanded of hamburgers will decrease and the demand curve for
ketchup will shift to the left.
the quantity demanded of hamburgers will increase and the demand curve for
ketchup will shift to the left.
the quantity demanded of hamburgers will decrease and the demand curve for
ketchup will shift to the right.
the quantity demanded of hamburgers will increase and the demand curve for ketchup will shift to the right.
4.
If insurance companies are compelled by law to decrease their rates 5% for high-risk drivers, what would be the most likely outcome for high-risk drivers according to supply and demand analysis?
a.
High-risk drivers will be better off since there will be an increase in the supply for insurance.
b.
High-risk drivers will be better off since there will be an increase in the demand for insurance.
c.
Many high-risk drivers may be unable to purchase insurance since the likely outcome of the law may be to cause a shortage of insurance for high-risk drivers.
d.
both b) and c) are correct.
5.
Which of the following forecasts for revenue are correct when the price of x declines?
a.
increased revenue in the price elastic case and decreased revenue in the price inelastic case
b.
decreased revenue in the price elastic case and increased revenue in the price inelastic case
c.
increase in revenue no matter what the elasticity coefficient is
d.
decrease in revenue no matter what the elasticity coefficient is
6.
The demand for food is likely to be more
than the demand for meat.
The relates to the elasticity determinant of
________.
a.
elastic – price relative to income
b.
inelastic – price relative to income
c.
elastic – number of substitutes
d.
inelastic – number of substitutes
7.
If you enjoyed wine so much that the more you had, the better it tasted, then the marginal utility of additional wine would be
a.
positive and declining
b.
negative
c.
zero
d.
increasing
8.
If the demand for corn shifts to the right, it may have been caused by
a.
the price of corn declining.
b.
more people needing corn for recipes.
c.
the price of corn increasing.
d.
both a) and b) are correct.
9.
The paradox of value suggests that one will pay
a. more for water than diamonds.
b. more for a luxury cruise than water.
c. more for .
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Eco 415 final exam
- 1. ECO 415 Final Exam Click here for the Solution 1. According to Figure 1.3, The Production Possibilities Curve. the point where only satellites are produced is: a. R b. S c. T d. V 2. According to Figure 1.3, at which point is it possible for the economy to produce more of both goods? a. R b. S c. T d. U 3. According to Figure 1.3, which point cannot be obtained without an increase in production technology? a. S b. T c. U d. W 4. The principle that the cost of something is what is sacrificed to get it, is known as the: a. marginal principle. b. principle of opportunity cost. c. principle of diminishing returns. d. reality principle. 5. The opportunity cost of going to college: a. is zero if your parents pay your tuition.
- 2. b. is equal to the cost of tuition, room and board, and other expenses. c. includes wages you lose by going to school instead of working. d. is the same for all students at a particular school who pay full tuition.
- 3. PAGE 2 6. A demand curve is defined as the relationship between a. the price of a good and the quantity of that good that consumers are willing to buy b. the price of a good and the quantity of that good that producers are willing to sell c. the income of consumers and the quantity of a good that consumers are willing to buy d. the income of consumers and the quantity of a good that producers are willing to sell 7. The law of demand states that quantity demanded of a product increases as a. consumer income rises b. the prices of other products fall c. the price of the product rises d. the price of the product falls 8. The law of supply states that a. Firms supply more of a product as consumer income rises b. Firms supply more of a product as consumer income falls c. Firms supply more of a product as the price of the product rises d. Firms supply more of a product as the price of the product falls