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ECO 231 Quizzes || All Correct.
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  • ECO 231

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of: producers and government planning committees. producers and input suppliers all consumers correct answers buyers and sellers Which of the following best describes a monetary poli...

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  • August 16, 2024
  • 28
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • in a market oriented economy the amount of a good

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  • ECO 231

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ECO 231 Quizzes || All Correct.
In a market-oriented economy, the amount of a good that is produced is primarily decided by the
interaction of:
producers and government planning committees.
producers and input suppliers
all consumers correct answers buyers and sellers

Which of the following best describes a monetary policy tool?
taxes
government spending
household savings correct answers interest rates

Which of the following is most likely a topic of discussion in macroeconomics?
a decrease in the production of DVD players by a consumer electronics company
an increase in the wage rate paid to automobile worker
an increase in the price of a hamburger correct answers a decrease in the unemployment rate

In a ______________________, most economic decisions about what to produce, how to
produce it, and for whom to produce it are made by buyers and sellers.
macroeconomy
command economy
microeconomy correct answers market-oriented economy

In countries like _________________ the command economy predominates.
South Africa and Kenya
China and Vietnam
Germany and France correct answers Cuba and North Korea

Macroeconomic topics do not usually include:
the rate of inflation
the rate of unemployment
economic growth correct answers the profit maximizing decisions of an individual manufacturer.

_________________ - a term referring to the fact that for many goods, as the level of production
increases, the average cost of producing each individual unit declines.
Division of labor
Specialization
Skill correct answers Economies of scale

Macroeconomics:
is concerned with the expansion of a small business into a large corporation
analyzes mergers and acquisitions between firms
is narrower in scope than microeconomics correct answers is concerned wit the expansion and
contraction of the overall economy.

,In a command economy, the ________________ either makes most economic decisions itself or
at least strongly influences how the decisions are made.
firm
market
business sector correct answers government

The circular flow diagram of economic activity is a model of the:
role of unions and government in the economy.
interaction among taxes, prices, and profits.
influence of government on business behavior. correct answers flow of goods, services, and
payments between households and firms.

Attending college is a case where the ________________________ exceeds the monetary cost.
budget constraint
marginal utility
marginal analysis correct answers opportunity cost

As depicted in _____________________, it is necessary to give up some of one good to gain
more of the other good.
utility
allocative efficiency
scarcity correct answers the production possibilities frontier

Philosophers draw a distinction between positive statements, which describe the world as it is,
and _______________s.
budget constraint
opportunity cost
trade-off correct answers normative statement

"If I didn't have class tonight, I would save $4 campus parking fee and spend four hours at work
where I earn $10 per hour." The opportunity cost of attending class this evening is:
$40
$0
$4 correct answers $44

The general pattern that consumption of the first few units of any good tends to bring a higher
level of __________________ to a person than consumption of later units is a common pattern.
opportunity cost
sunk costs
marginal benefit correct answers utility

Economists refer to this pattern, the ___________________, which means that as a person
receives more of a good, the additional or marginal utility from each additional unit of the good
declines.
production possibilities frontier
law of increasing marginal utility

, law of trade-offs correct answers law of diminishing marginal utility

The lesson of __________ is to forget about the money that's irretrievably gone and instead to
focus on the marginal costs and benefits of future options.
marginal utility
budget constraints
marginal analysis correct answers sunk costs

Scarcity implies that:
consumers would be willing to purchase the same quantity of a good at a higher price.
at the current market price, consumers ae willing to purchase more of a good than suppliers are
willing to produce.
consumers are too poor to afford the goods and services available. correct answers it is
impossible to completely fulfill the unlimited human desire for goods and services with the
limited resources available.

The model that economists use for illustrating the process of individual choice in a situation of
scarcity is the ___________________, sometimes also called the opportunity set, a diagram
which shows what choices are possible.
income cap
original budget
consumption set correct answers budget constraint

Most choices involve ______________, which involves comparing the benefits and costs of
choosing a little more or a little less of a good.
consumption
the budget constraint
utility correct answers marginal analysis

The term "ceteris paribus" means that:
no one knows which variables will change and which will remain constant.
what is true for the individuals is not necessarily true for the whole.
everything is variable. correct answers all variables except those specified are constant.

__________ are enacted when discontented sellers, feeling that prices are too low, appeal to
legislators to keep prices from falling.
Price ceilings
Rent controls
Subsidies correct answers Price floors

If the price is below the equilibrium level, then the quantity demanded will exceed the quantity
supplied. This is known as _______________.
ceteris paribus
excess supply
a price ceiling correct answers excess demand

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