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Econ 200 Exam 1 Complete Questions And Answers
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Econ 200 Exam 1 Complete Questions And Answers
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Econ 200 Exam 1 Complete QuestionsAnd Answers
Economics is CORRECT ANSWERS the study of how people make choices
If it takes even a small amount of time, energy or money to acquire then a good is
CORRECT ANSWERS scarce
an example of a direct negative incentive is CORRECT ANSWERS threatening to fire
those who do not perform well
A car insurance company is willing to offer accident-free drivers a discount. This is an
example of: CORRECT ANSWERS a positive incentive
Legislation that requires children under age two to sit in infant seats on airplanes has
made air travel safer but also more expensive for families. Which of the following is an
unintended consequence of the infant safety policy? CORRECT ANSWERS Many
families with infants now choose to drive instead of fly
Which one of these is NOT scarce? CORRECT ANSWERS Gravity
When incentives don't work as designed this is known as __________________.
CORRECT ANSWERS Unintended consequences
This quote from Dwight D. Eisenhower, "The cost of one modern heavy duty bomber is
this: a modern brick school in more than thirty cities. It is two electric power plants each
serving a town of 60,000 people. It is two fine, fully equipped hospitals. It is some fifty
miles of concrete highways. We pay for a single fighter with a half million bushels of
wheat. We pay for a single destroyer with new homes that could have housed more
than 8,000 people." is an example of CORRECT ANSWERS trade-offs
Which of these is NOT an unintended consequence of a binding minimum wage?
CORRECT ANSWERS Longer hours for workers
Economists believe that voluntary trade between two individuals CORRECT ANSWERS
benefits both trade partners
Since money doesn't grow of trees, it CORRECT ANSWERS is scarce
When deciding whether to do something, economists consider the CORRECT
ANSWERS both the marginal benefits and the marginal costs
Apple designs the iPhone in California, it is assembled in China, and then sold in the
United States. This is an example of CORRECT ANSWERS trade creating value
, Identify the normative statement? CORRECT ANSWERS Being able to see Fergie
perform live for $35 is a good deal.
Which of the following is a positive economic statement? CORRECT ANSWERS Levels
has over 25,000,000 views on YouTube.
What is ceteris paribus? CORRECT ANSWERS It is when the variables that are not
mentioned remain constant.
This term refers to the specific components that are left out of (not determined within) a
model. CORRECT ANSWERS exogenous
If society decreases its savings rate, the current production possibilities curve will
CORRECT ANSWERS remain the same
The Production Possibilities Frontier is bowed out because of CORRECT ANSWERS
the Law of Increasing Opportunity Cost
When someone wishes to invest in more capital goods, it is usually true that CORRECT
ANSWERS she must give up some consumer goods in the present
A production possibilities frontier graphically represents the maximum quantities of two
products produced when all resources in the economy are being used efficiently. If an
economy operates at a point inside its production possibilities frontier CORRECT
ANSWERS it is utilizing some resources inefficiently.
What is the opportunity cost of taking this exam? CORRECT ANSWERS The highest
valued alternative that you gave up to prepare for and attend the exam.
If a society saves less now than in the past, then the production possibilities curve will
over time CORRECT ANSWERS shift out but not as much as in the past
You are considering going to LA to visit friends. A round trip plane ride takes 3 hours
round trip and costs $400. A round trip bus ride takes 15 hours and costs $100. At what
hourly rate would you be indifferent between taking the bus and the plane? CORRECT
ANSWERS $25
Given the following production table, and the law of comparative advantage we
discussed in class, which assignment of duties makes the most sense? CORRECT
ANSWERS Tony should do the baking and Manny should make the yeyo.
Which of these is a normative statement? CORRECT ANSWERS Giving roses is the
best way to express your love on Valentine's Day
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