A situation where people have unlimited wants but face limited resources is known as:
A. Economic efficiency
B. Factors of production
C. Macroeconomics
D. Scarcity correct answers D. Scarcity
The branch of economics that focuses on the study of output, inflation, and unemployment is known as...
Econ 130 Botir || with 100% Verified Solutions.
A situation where people have unlimited wants but face limited resources is known as:
A. Economic efficiency
B. Factors of production
C. Macroeconomics
D. Scarcity correct answers D. Scarcity
The branch of economics that focuses on the study of output, inflation, and unemployment is
known as:
A. Capital
B. Labor
C. Macroeconomics
D. Microeconomics correct answers C. Macroeconomics
Which of the following describes a situation most closely related to microeconomics?
A. A business firm decides to purchase new computers for its employees.
B. The government reports that unemployment has increased over the past year.
C. Research finds that living standards have improved over the past decade.
D.The government decides to cut taxes during a period of high unemployment. correct answers
A. A business firm decides to purchase new computers for its employees.
Suppose the newspaper reports that unemployment has risen over the past year. This report deals
with which branch of economics?
A. Inflation
B. Macroeconomics
C. Microeconomics
D. Scarcity correct answers B. Macroeconomics
Consider the factors of production required to make a textbook. Which of the following factors is
an example of capital?
A. The printing press used to print the book.
B. The lumber used to make the paper.
C. The worker in charge of operating the printing press.
D. The author of the textbook. correct answers A. The printing press used to print the book
Suppose a friend is considering attending college, or going to work full time. The opportunity
cost of a college education would include:
A. Room and board
B. Personal expenses (food and incidentals)
C. Forgone income
,D. All of the above correct answers C. Forgone income
The process of seeking new technology and new forms of organization is known as:
A. Capital
B. Entrepreneurship
C. Labor
D. Natural resources correct answers B. Entrepreneurship
Which of the following factors of production is a natural resource?
A. Labor
B. Equipment
C. Farmland
D. Buildings correct answers C. Farmland
Suppose a friend is considering attending college, or going to work full time. The opportunity
cost of a college education would not include the cost of renting an apartment because
A. The friend could rent an apartment close to campus.
B. The friend could live on campus and pay room and board instead.
C. The friend has the same transportation costs whether he/she is working or attending college.
D. The friend will have to pay rent whether he/she is working or attending college. correct
answers D. The friend will have to pay rent whether he/she is working or attending college.
The opportunity cost is
A. The cost of a good or service measured in terms of what it would cost to pursue the next best
alternative using these resources.
B. The price of a good or service.
C. The cost of the factors of production used to make the good or service.
D. The losses a business incurs when it produces a good or provides a service. correct answers A.
The cost of a good or service measured in terms of what it would cost to pursue the next best
alternative using these resources.
Comparative advantage is when
A. One person can produce more than another person
B. One person can produce a good at a lower opportunity cost than another person.
C. When two parties can complete a task equally well.
D. Both a) and b) correct answers B. One person can produce a good at a lower opportunity cost
than another person.
Positive economics focuses on
A.How to fairly allocate goods and services in the economy
,B. Determining which government policies are good for the economy.
C. Observed facts and the relationship between them.
D. All of the above. correct answers C. Observed facts and the relationship between them.
Efficiency in distribution means that goods and services are:
A. Allocated such that it is not possible to make someone happier without causing someone
else's wants to be less satisfied.
B. Allocated to the poorest individuals first
C. Allocated to individuals equally.
D. Allocated according to what is fair. correct answers A. Allocated such that it is not possible to
make someone happier without causing someone else's wants to be less satisfied.
Which of the following is a normative statement?
A. "The unemployment rate is currently 6%."
B. "Widgets, Inc. earned $2.5 million in profits last year."
C. "Union membership in Europe is too high for companies to remain profitable."
D. "A U.S. company decided to outsource production to China in order to reduce labor costs."
correct answers D. "A U.S. company decided to outscoure production to China in order to reduce
labor costs."
A market
A. is any arrangement people have for trading with each other
B. provides information for people to coordinate their decisions.
C. Provides incentives for people to participate in trading
D. All of the above. correct answers D. All of the above
- is any arrangement people have for trading with each other.
- provides information for people to coordinate their decisions.
- provides incentives for people to participate in trading.
According to Adam Smith, the wealth of a nation depended on
A. The amount of gold and silver accumulated by the treasury
B. The activities of individuals interacting in free markets
C. The role of the government in providing services to the
general public.
D. The organization of a specific plan forwarded by the government correct answers B. The
activities of individuals interacting in free markets.
What is the government's role in a market economy, such as the United States?
A. To decide how much will be produced
B. To decide how much will be produced
, C. To establish laws and regulations within markets to protect individuals.
D. All of the above. correct answers C. To establish laws and regulations within markets to
protect individuals.
Investment
A. is the act of increasing the economy's stock of labor
B. Involves a trade-off between today's consumption and future consumption.
C. Includes the invention of new technology
D. Is difficult to measure because it includes intangibles correct answers B. Involves a trade-off
between today's consumption and future consumption.
Fairness in distribution insures goods and services are allocated efficiently.
True or False correct answers False
Normative economics judges the merits of economic policy
True or False correct answers True
Efficiency in production means that it is possible to produce one more good without forgoing the
opportunity to produce another good instead.
True or False correct answers False
If one individual can produce light bulbs more quickly than another, this implies he has a
comparative advantage in making light bulbs.
True or False correct answers False
Opportunity cost is what an individual gives up when he/she makes a choice using limited
resources.
True or False correct answers True
The invisible hand refers to the government's role in the economy.
True or False correct answers False
The law of demand states that as the price _______, the
quantity demanded tends to ______.
A. Increases....increase
B. Decreases....decrease
C. Increases....decrease
D. Decreases....remain unchanged correct answers C. Increases .... decrease
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