ECON-B 251 EXAM #1 STUDY GUIDE SET WITH ALL ANSWERS

ECON-B 251 EXAM #1 STUDY GUIDE SET WITH ALL ANSWERS
1. All economic questions are about: how to deal with scarcity
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2. Which of the following is a microeconomic question?
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Choose all that apply.: Will taxing pizza increase the amount of pizzas sold?
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Will a shortage of electricians lead to increase in their wages?
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3. Rational decision makers are called: maximizers
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4. Because we face scarcity, every choice involves: trade-offs
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5. You decide to take a vacation and the trip costs you $2,000. While you are o
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n vacation, you do not report to work where you could have earned $750. Theo
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pportunity cost of the vacation is $: 2,750 G G G G G G G


6. Strategic decisions include G G


Choose all that apply.: other's decisions
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one's own benefits
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one's own costs G G


7. The night before a midterm exam, you decide to go to the movies instead of
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studying for the exam. You score 60 percent on your exam. If you had studiedt
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he night before, you'd have scored 70 percent. The opportunity cost of youre
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vening at the movies is G percent.: 10
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8. Which of the following is a positive statement?: A 10 percent increase ini
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ncome leads to a 4 percent increase in the consumption of beef.
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9. Which of the following is a normative statement?: You should eat less candy.
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10. Which of the following are true statements?
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Choose all that apply.: Economists try to isolate cause and effect relationships.
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Economists use empirical analysis, as well as natural and economic experiments.
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11. When an economy produces more smartphones and fewer cars, it is
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answering the question.: "what?" G G


12. Point N in the above diagram illustrates: a production point th at has under-
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utilization of resources. G G




13. Point diagram
on the production possibilities curve in the aboveillustrates
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an unattainable point.: L
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, 14. If Shen produces both paninis and burgers, then when production is
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efficient,: there is no tradeoff between paninis and burgers.
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15. The principle of decreasing marginal benefit implies the: additional benefitf
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rom obtaining one more of a good or service decreases as more is consumed.
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