Exam (elaborations)
ECO 213 - Test 1 Questions And Answers Latest Updated
- Course
- Institution
ECO 213 - Test 1 Questions And Answers Latest Updated
[Show more]
Content preview
ECO 213 - Test 1 Questions And AnswersLatest Updated
1) Economics is the study of
A) supply and demand.
B ) how to make money in a market economy.
C) the choices everybody makes to attain their goals, given their scarce resources.
D) how to make money in the stock market. ANS✔✔ C) the choices everybody makes to attain their
goals, given their scarce resources.
2) What assumptions about humans do economists make?
A) People are greedy and selfish.
B ) None, because economics takes humans as given.
C) Humans prefer to live in a society that values fairness above all else.
D) People are rational and respond to incentives ANS✔✔ D) People are rational and respond to
incentives
3) Scarcity
A) is found only in developing nations.
B ) occurs because there are too many people.
C) occurs because of unlimited wants and limited resources available to fulfill these wants.
D) is not a problem for the wealthy. ANS✔✔ C) occurs because of unlimited wants and limited resources
available to fulfill these wants.
2024
,4) Which of the following best describes the assumption about human behavior that economics makes?
A) People weigh religious, envy, compassion, anger aspects in all decisions they make.
B ) Assuming rational behavior is useful in explaining choices people make even though they may not
behave rationally all the time.
C) Economics assumes individuals act rationally all the time in all circumstances.
D) None of these describes what economics assumes about human behavior. ANS✔✔ B ) Assuming
rational behavior is useful in explaining choices people make even though they may
not behave rationally all the time.
5) What does the adjective marginal mean in economics?
A) Something done at the edge of a market, like buying a table at a garage sale.
B ) Buying something that is illegal to buy.
C) Incremental, additional, or extra of some action.
D) None of these illustrate how the word marginal is used in economics. ANS✔✔ C) Incremental,
additional, or extra of some action
6) Where are buyers and sellers brought together?
A) Only in cities, towns, and villages.
B ) A market, which can be a location or an electronic connection.
C) A market, which has to be a physical location.
D) Only in shopping malls. ANS✔✔ B ) A market, which can be a location or an electronic connection.
7) What does marginal analysis involve?
A) Comparing total costs to total benefits.
B ) Subtracting total costs from total benefits.
C) Comparing average costs to average benefits.
2024
,D) Comparing marginal costs to marginal benefits. ANS✔✔ D) Comparing marginal costs to marginal
benefits.
8) What forces humans to make tradeoffs?
A) productive inefficiency
B ) confusion
C) scarcity
D) more than one political party ANS✔✔ C) scarcity
9) How is the decision about what goods and services will be produced made in a market economy?
A) What will be produced is determined by what society needs the most.
B ) Producing firms decide to produce only what the boss says must be produced.
C) Lawmakers in the government vote on what will be produced.
D) By consumers, firms, and government choosing which goods and services to buy. ANS✔✔ D) By
consumers, firms, and government choosing which goods and services to buy.
10) Every society faces economic tradeoffs, which means
A) if one political party controls the government, the other party can't.
B ) some people live better than others do.
C) producing less of one good means more of another good can be produced.
D) none of these. ANS✔✔ C) producing less of one good means more of another good can be produced.
11) Which of the following is correct?
A) Economics is a decision science that studies the tradeoffs we are forced to make because of
scarcity.
B ) Every individual, no matter how rich or poor, is faced with making tradeoffs.
2024
, C) Anytime you have to decide which action to take you are facing an economic tradeoff.
D) All of these are correct. ANS✔✔ D) All of these are correct.
12) Who ultimately decides what goods and services will be produced in a market economy?
A) none of these
B ) producing firms
C) the ruling political party
D) consumers ANS✔✔ D) consumers
13) Which of the following is a problem inherent in centrally planned economies?
A) Production managers do not satisfy consumer wants but the government's orders.
B ) There are no problems, everyone including consumers are satisfied.
C) Too much production of low-cost, high-quality goods and services.
D) None of these describe the problem inherent in a centrally planned economy. ANS✔✔ A) Production
managers do not satisfy consumer wants but the government's orders.
14) What explains the efficiency of markets?
A) They always result in equity.
B ) Markets promote equal standards of living.
C) The government stays out.
D) Markets promote competition and voluntary exchange ANS✔✔ D) Markets promote competition and
voluntary exchange
15) Which of the following uses do economic models fulfill?
A) Make economic ideas explicit and concrete for use by decision makers.
B ) Simplification of some aspect of economic life.
2024
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Schoolflix. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now