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ECON 1000 Complete Questions and Answers |Verified !!
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ECON 1000 Complete Questions andAnswers |Verified !!
In the opening paragraph of the textbook it was noted that Mike Ditka has suggested that football
related injuries could likely be reduced by have participants play without helmets (or at least without
facemasks on their helmets). His underlying argument A. earned him the 2012 Nobel Prize in Economics.
B. relies heavily upon the Incentive Principle. C. implicitly assumes that football players are rational
(which is clearly not true, given the violent nature of the game). D. illustrates the difference between
Absolute Advantage and Comparative Advantage Answer - B. relies heavily upon the Incentive Principle.
Economics can be defined as the social science that studies how people make decisions in the face of
scarcity. "Scarcity" refers to A. the observation that food and energy price in the U.S. are determined
primarily by policies implemented by Congress and the President. B. the recognition that private
business owners are greedy and exploit workers, providing them with incomes so low that they can
barely afford to survive. C. difficulties that arise when trying to get goods made by the industrial sector
transported, delivered, and available to consumers for purchase in the commercial sector. D. a universal
phenomenon that arises because resources are finite and limited Answer - D. a universal phenomenon
that arises because resources are finite and limited
Consider the following two statements. Statement 1: "Cash payments increase the welfare of recipients
to a greater degree than do transfers-in-kind of equal cash value." Statement 2: "Local and state
governments in the U.S. should provide more subsidies to professional sports franchises." A majority of
economists would A. agree with both Statement 1 and Statement 2. B. agree with Statement 1, but
disagree with Statement 2. C. disagree with Statement 1, but agree with Statement 2. D. disagree with
both Statement 1 and Statement 2 Answer - B. agree with Statement 1, but disagree with Statement 2.
Suppose that Eric has the option to purchase Good X be either: (i) paying $25 for each unit consumed or
(ii) paying a flat fee $150 to be able to consume as much as he wants (for example, maybe this good is
access to a fitness center and he can pay $25 for each visit or pay a flat fee of $150 per month which
allows him to visit as many times as he wants for no additional charge). Given these pricing options, Eric
should A. choose to pay $25 for each unit consumed and get 3 units of Good X. B. choose to pay $25 for
each unit consumed and get 8 units of Good X. C. choose to pay a flat fee of $150 and get 10 units of
Good X. D. choose to pay a flat fee of $150 and get 13 units of Good X Answer - A. choose to pay $25 for
each unit consumed and get 3 units of Good X
, Which of the following is one of the "Three Fundamental Economic Questions" that every society must
address? A. "How can we guarantee that everyone has a job?" B. "Which productive resources will be
used to produce which goods and services?" C. "How can we ensure that everyone has roughly the same
income?" D. "How can we reduce the inflation rate?" Answer - B. "Which productive resources will be
used to produce which goods and services?"
The Preliminary Circular Flow Diagram illustrates the A. transfer of imports and exports between a
country and its international trading partners. B. transfer of money between households and firms. C.
transfer of Factors of Production and Finished Goods and Services between households and firms. D.
limits of production that a society faces, by identifying the maximum amount of one good that can be
produced for every possible level of production of another good Answer - C. transfer of Factors of
Production and Finished Goods and Services between households and firms.
Travis' Opportunity Cost for producing a unit of jackets is ________ units of pants. (As noted above,
Travis is the "marginal worker" between point "D" and point "E" on the Production Possibilities Frontier.)
A. 1.5 B. 4.7 C. 80 D. 120 Answer - A. 1.5
Which worker has an Absolute Advantage in producing jackets over each of the other two workers? A.
Matt. B. Tom. C. Travis. D. None of the above answers are necessarily correct, since it is not possible to
determine which worker has an Absolute Advantage in producing jackets based upon the information
conveyed in the graph. Answer - C. Travis
The set of rules and methods put in place by a society to answer (directly or indirectly) the "three
fundamental economic questions" can be described as A. market equilibrium. B. a contract. C. consumer
sovereignty. D. an economic system Answer - D. an economic system.
Which of the following is an example of a "Produced Asset"? A. The "college education" which has been
acquired by approximately 32% of U.S. adults. B. The Marcellus Shale (the largest shale natural gas play
in the United States, with reserves of 139.4 trillion cubic feet as of 2019). C. The Kia Motors
manufacturing plant in West Point, GA. D. None of the above answers are correct Answer - C. The Kia
Motors manufacturing plant in West Point, GA.
Alec Nove described _____________ as "when the state uses influence, subsidies, grants, [and] taxes [to
influence economic decisions], but does not compel." A. Coercion B. Command Planning C. Indicative
Planning D. the Invisible Hand Answer - C. Indicative Planning
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