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macro fsu exam 1 2019 (1)
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macro fsu exam 1 2019 (1)
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macro fsu exam 1 2019Economic choice and competitive behavior are the result of
scarcity.
poverty.
public ownership of resources.
private ownership of resources. - ANS-scarcity
The most fundamental concept in economics is that
changes in incentives influence behavior in a predictable way--people will be less likely to
choose an option as it becomes more expensive.
changes in incentives generally do not influence human behavior.
goods that are provided by government are free for society.
individuals generally do not consider other alternatives when making a choice. - ANS-changes
in incentives influence behavior in a predictable way--people will be less likely to choose an
option as it becomes more expensive.
Which of the following is most consistent with economizing behavior?
If you derive the same satisfaction from eating pizza and eating ice cream, it makes no
difference which one of the two you choose.
Before voting, you should invest the time and energy to become fully informed on all of the
issues and candidates.
It never makes sense to hire someone to do something for you that you could do yourself.
If you get the same satisfaction from a chicken sandwich and a salad, you should purchase the
one that costs the least. - ANS-If you get the same satisfaction from a chicken sandwich and a
salad, you should purchase the one that costs the least.
The value of a good
depends on many factors, including who uses it and under what circumstances.
is determined by the cost of producing it.
, depends on the labor necessary to supply the good.
can be measured objectively by a survey of manufacturers of the good - ANS-depends on many
factors, including who uses it and under what circumstances.
For a college student who wishes to calculate the true costs of going to college, the costs of
room and board
should be counted in full, regardless of the costs of eating and sleeping elsewhere.
should be counted only to the extent that they are more expensive at college than elsewhere.
usually exceed the opportunity cost of going to college.
plus the cost of tuition, equals the opportunity cost of going to college - ANS-should be counted
only to the extent that they are more expensive at college than elsewhere.
Which of the following is a normative economic statement?
If we doubled the size of welfare payments, we would reduce the number of homeless persons.
Companies should be concerned with more than just their profits.
An increase in spending on airport security will reduce the number of hijackings.
If social security were to be privatized, workers would earn a higher rate of return on their
retirement contributions. - ANS-Companies should be concerned with more than just their
profits.
After every fall election, the weather starts to turn cold, therefore elections cause cold weather."
This statement
confuses positive and normative analysis.
commits the fallacy of composition.
fails to recognize that association is not causation.
confuses macroeconomics with microeconomics - ANS-fails to recognize that association is not
causation.
The wages of house painters will tend to rise when
more people recognize that house painters have very low incomes.
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