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ECON-B 251 Exam #1 Study Guide With Completed Answers!!
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ECON-B 251 Exam #1 Study Guide With Completed Answers!!
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ECON-B 251 Exam #1 Study Guide With Completed Answers!!All economic questions are about - Answer how to deal with scarcity
Which of the following is a microeconomic question?
Choose all that apply. - Answer Will taxing pizza increase the amount of pizzas sold?
Will a shortage of electricians lead to increase in their wages?
Rational decision makers are called - Answer maximizers
Because we face scarcity, every choice involves - Answer trade-offs
You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not report to work where you could have earned $750. The opportunity cost of the vacation is $ - Answer 2,750
Strategic decisions include
Choose all that apply. - Answer other's decisions
one's own benefits
one's own costs
The night before a midterm exam, you decide to go to the movies instead of studying
for the exam. You score 60 percent on your exam. If you had studied the night before, you'd have scored 70 percent. The opportunity cost of your evening at the movies is ___ percent. - Answer 10
Which of the following is a positive statement? - Answer A 10 percent increase in income leads to a 4 percent increase in the consumption of beef.
Which of the following is a normative statement? - Answer You should eat less candy.
Which of the following are true statements?
Choose all that apply. - Answer Economists try to isolate cause and effect relationships.
Economists use empirical analysis, as well as natural and economic experiments.
When an economy produces more smartphones and fewer cars, it is answering the _____ question. - Answer "what?"
Point N in the above diagram illustrates - Answer a production point that has underutilization of resources.
Point ___ on the production possibilities curve in the above diagram illustrates an unattainable point. - Answer L
If Shen produces both paninis and burgers, then when production is efficient, - Answer there is no tradeoff between paninis and burgers. ECON-B 251 Exam #1 Study Guide With Completed Answers!!
The principle of decreasing marginal benefit implies the - Answer additional benefit from obtaining one more of a good or service decreases as more is consumed.
An economy produces face masks. If the economy achieves allocative efficiency, then - Answer it produces the quantity on the PPC that is valued most highly.
In a year, Keisha produces 40 sandwiches or 100 cups of coffee. In a year, Doug produces 30 sandwiches or 90 cups of coffee.
Based on this information, _____ has an absolute value in cups of coffee. _____ has
a comparative advantage in cups of coffee. - Answer Keisha, Doug
In a year, Keisha produces 40 sandwiches or 100 cups of coffee. In a year, Doug produces 30 sandwiches or 90 cups of coffee.
To maximize their total output of sandwiches and cups of coffee Keisha should specialize in _____ and Doug should specialize in _____. - Answer sandwiches, cups of coffee
Two business owners, Allison and Bianca, have identical production possibilities frontiers illustrated above. If Allison produces at point a and Bianca produces at point
b, then - Answer Allison's future consumption will be greater than Bianca's.
Which of the following causes a movement up along the per-worker production function? - Answer An increase in the amount of capital.
A 0.5 percent change in the growth rate - Answer has a significant effect on long-run output (real GDP) over time.
Suppose two countries have a per capita real GDP of $25,000 in 2016. Econoland has a growth rate of 4 percent and Micropolis has a growth rate of 5 percent. By 2019, the per capita real GDP for Econoland is $_____. - Answer 28121.60
Suppose two countries have a per capita real GDP of $25,000 in 2016. Econoland has a growth rate of 4 percent and Micropolis has a growth rate of 5 percent. By 2019, the per capita real GDP for Micropolis is $_____. - Answer 28940.63
Which of the following are characteristics of markets?
Choose all that apply. - Answer Markets determine the terms of exchange (price) of goods and services.
Represents a voluntary exchange between buyers and sellers.
If the price of an coffee increases, holding all else constant, then the _____ of coffee _____. - Answer quantity demanded for, decreases
Coffee and tea are substitutes in consumption. If the price of coffee increases, then the _____ tea _____. - Answer demand for, increases
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