ECON 101 STUDY EXAM REVIEWS
WITH CORRECT ANSWERS
an incentive - CORRECT ANSWER-could be either a reward or
a penalty
scarcity exists because - CORRECT ANSWER-our wants
exceed the resources available to satisfy them
Economics is best defined as the study of how people,
businesses, governm...
an incentive - CORRECT ANSWER-could be either a reward or
a penalty
scarcity exists because - CORRECT ANSWER-our wants
exceed the resources available to satisfy them
Economics is best defined as the study of how people,
businesses, governments, and societies - CORRECT
ANSWER-make choices to cope with scarcity
Micro economics is the study of - CORRECT ANSWER-the
choices that individuals and businesses make
People must make choices because - CORRECT ANSWER-of
scarcity
which of the following is NOT a factor of production? -
CORRECT ANSWER-the wages paid to workers
,Joy is training to become a chef. The skills she is obtaining
from her training and education will increase Joy's - CORRECT
ANSWER-human capital
Which of the following is NOT a factor of production? -
CORRECT ANSWER-175 shares of Microsoft stock
When an economy produces more houses and fewer
typewriters, its answering the _____ part of one of the two big
economic questions - CORRECT ANSWER-"what"
Factors of production include - CORRECT ANSWER-land,
labor, capital and entrepreneurship
Scarcity requires that people must - CORRECT ANSWER-
make choices
Studying the determination of prices in individual markets is
primarily a concern of - CORRECT ANSWER-microeconomics
In broad terms the difference between microeconomics and
macroeconomics is that - CORRECT ANSWER-
microeconomics studies decisions of individual people and
firms and macroeconomics studies the entire national economy
People must make choices because - CORRECT ANSWER-of
scarcity
In every economic system, choices must be made because
resources are _____ and our wants are _____ - CORRECT
ANSWER-limited; unlimited
When an economist talks of scarcity, the economist is referring
to the - CORRECT ANSWER-inability of society to satisfy all
human wants because of limited resources
,Fundamental economic problems basically arise from -
CORRECT ANSWER-our wants exceeding or scarce resources
All economic questions arise because we - CORRECT
ANSWER-want more than we can get
All economic questions are about - CORRECT ANSWER-how
to cope with scarcity
Scarcity exists because - CORRECT ANSWER-our wants to
exceed the resources available to satisfy them
Macroeconomics is concerned with - CORRECT ANSWER-
economy-wide variables
Which of the following is a macroeconomic issue? - CORRECT
ANSWER-the effect of increasing the money supply on inflation
Which of the following is a microeconomic topic? - CORRECT
ANSWER-the reasons why Kathy buys less orange juice
Studying the effects choices have on the individual markets
within the economy is part of - CORRECT ANSWER-
microeconomics
When firms in an economy start producing more computers and
fewer televisions, they are answering the _____ part of one of
the two big economic questions. - CORRECT ANSWER-"what"
Which factor of production earns profit? - CORRECT
ANSWER-entrepreneurship
In the U.S. economy, which of the following statements is true?
- CORRECT ANSWER-more services are produced than goods
The term human capital refers to - CORRECT ANSWER-
people's knowledge and skill
, Suppose Company A's profits increase by $10 million and
nobody is made worse off. The CEO of Company A keeps all
$10 million for herself. This situation - CORRECT ANSWER-is
definitely efficient
If Taco Bell decided to produce more tacos and fewer burritos,
Taco Bell is answering the _____ part of one of the two big
economic questions. - CORRECT ANSWER-"what"
An art museum decides to offer tours by having visitors listen to
cassette tapes rather than have tour guides. The museum is
answering the _____ part of one of the two big economic
questions. - CORRECT ANSWER-"how"
Human capital is - CORRECT ANSWER-the skill and
knowledge of workers
Human resources that perform the functions of organizing,
managing, and assembling the other resources is called -
CORRECT ANSWER-entrepreneurship
The fact that people with higher incomes get to consume more
goods and services addresses the _____ part of one of the two
big economic questions - CORRECT ANSWER-"for whom"
The "gifts of nature" are included as part of which factor of
production? - CORRECT ANSWER-land
When a firm decides to produce more electric cars and
conventional gas powered car, it is more directly answering the
_____ part of one of the two big economic questions. -
CORRECT ANSWER-"what"
Which of the following best defines capital as a factor of
production? - CORRECT ANSWER-instruments, machines,
and buildings used in production
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