ECON 130 Midterm 1 || very Flawless.
Which of the following are examples of command economies? correct answers Cuba and North
Korea
In a command economy, which of the following entities makes most economic decisions itself or
at least strongly influences how the decisions are made? correct answers Government
Which of the following is the key factor that allows countries to consume bundles of goods and
service that lay beyond their production possibilities frontier? correct answers International
Trade
For which of the following economies are most economic decisions about what to produce, how
to produce it, and for whom to produce it made by buyers and sellers? correct answers Market-
oriented economies
In the first chapter of The Wealth of Nations, Smith introduces the idea of the____, which means
the way in which the work required to produce a good or service is divided into a number of
tasks that are performed by different workers. correct answers Division of labor
The two main tools of macroeconomic policy include monetary policy and fiscal policy. Fiscal
policy involves spending by which of the following entities? correct answers Government
The basic difference between macroeconomics and microeconomics is: correct answers
Microeconomics focuses on individual consumers and firms while macroeconomics focuses on
the performance of the entire economy
The circular flow diagram is a model of the: correct answers Flow of goods, services, and
payments between households and firms
Philosophers draw a distinction between positive statements, which describe the world as it is,
and which of the following, which describe how the world should be? correct answers Normative
statements
As depicted in ______, it is necessary to give up some of one good to gain more of the other
good correct answers The production possibilities frontier
Scarcity exists because of: correct answers Unlimited wants and limited resources
Your friend decides to spend an hour surfing rather than studying. His opportunity cost is:
correct answers The benefit to his grades from studying for an hour
"If I didn't have class tonight, I would save the $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: correct
answers $44
Which of the following are examples of command economies? correct answers Cuba and North
Korea
In a command economy, which of the following entities makes most economic decisions itself or
at least strongly influences how the decisions are made? correct answers Government
Which of the following is the key factor that allows countries to consume bundles of goods and
service that lay beyond their production possibilities frontier? correct answers International
Trade
For which of the following economies are most economic decisions about what to produce, how
to produce it, and for whom to produce it made by buyers and sellers? correct answers Market-
oriented economies
In the first chapter of The Wealth of Nations, Smith introduces the idea of the____, which means
the way in which the work required to produce a good or service is divided into a number of
tasks that are performed by different workers. correct answers Division of labor
The two main tools of macroeconomic policy include monetary policy and fiscal policy. Fiscal
policy involves spending by which of the following entities? correct answers Government
The basic difference between macroeconomics and microeconomics is: correct answers
Microeconomics focuses on individual consumers and firms while macroeconomics focuses on
the performance of the entire economy
The circular flow diagram is a model of the: correct answers Flow of goods, services, and
payments between households and firms
Philosophers draw a distinction between positive statements, which describe the world as it is,
and which of the following, which describe how the world should be? correct answers Normative
statements
As depicted in ______, it is necessary to give up some of one good to gain more of the other
good correct answers The production possibilities frontier
Scarcity exists because of: correct answers Unlimited wants and limited resources
Your friend decides to spend an hour surfing rather than studying. His opportunity cost is:
correct answers The benefit to his grades from studying for an hour
"If I didn't have class tonight, I would save the $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: correct
answers $44
