Economics deals primarily with the concept of CORRECT ANSWER scarcity.
Scarcity means CORRECT ANSWER 1. we cannot have everything that we want. 2. we have to make choices between the things we desire. 3. we must give up some things in order to obtain other things.
Which of the following is no...
economics deals primarily with the concept of correct answer scarcity scarcity means correct answer 1 we cannot have everything that we want 2 we have to make choices between the things we desire
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ECN 211 - EXAM #1 QUESTIONS WITH
CORRECT ANSWERS
Economics deals primarily with the concept of CORRECT ANSWER scarcity.
Scarcity means CORRECT ANSWER 1. we cannot have everything that we want. 2. we
have to make choices between the things we desire. 3. we must give up some things in
order to obtain other things.
Which of the following is not scarce? 1. A's in Microeconomics 2. workout tapes 3. trash
that no one wants 4. tender porterhouse steaks CORRECT ANSWER 3. trash that no
one wants
The word economy comes from the Greek word oikonomos, which means CORRECT
ANSWER "one who manages a household".
Economics is the study of how CORRECT ANSWER society manages its scarce
resources.
The adage, "there is no such thing as a free lunch" means CORRECT ANSWER people
face tradeoffs.
Mitch has $100 to spend and wants to buy either a new amplifier for his guitar or a new
mp3 player to listen to music while working out. Both the amplifier and the mp3 player
cost $100, so he can only buy one. This illustrates the basic concept that CORRECT
ANSWER people face tradeoffs. Mitch can either buy a new amplifier or a new mp3
player with the $100 that he has, but he cannot get both. So, he faces a tradeoff
between having the two goods.
The opportunity cost of an item is CORRECT ANSWER what you give up to get that
item.
Retired people are more likely than working people to travel by bus, train, or car.
Working people more often chooses to travel by airplane. An economic explanation of
this might be CORRECT ANSWER working people have a higher opportunity cost of
their time than do retired people. - People who have fewer things to do with their time
(like retired people) have a lower opportunity cost of spending time. As a result, they do
not mind trips that take longer time than people who are working. Working people have
a higher opportunity cost of their time (as time is more valuable to them) and therefore
would like to reach their destinations faster.
Which of the following should be considered when determining the cost of the ECN211
course? CORRECT ANSWER 1. the tuition fee paid for the course. 2. the price of any
textbook assigned for the course. 3. the value of being somewhere else
, A rational decision maker takes an action only if the CORRECT ANSWER marginal
benefit from the action is greater than the marginal cost of taking that action.
A marginal change is one that CORRECT ANSWER incrementally alters an existing
plan.
Mark plans to get his car washed and buy gasoline. He discovers that if he buys 7
gallons of gasoline at a price of $1.00 per gallon, the price of the car wash is $4.99.
However, if he buys 8 gallons of gasoline, the price of the car wash goes down to $4.00
(all prices are tax included). What is the marginal cost (in terms of money) of the eight
gallon of gasoline? CORRECT ANSWER $0.01 - The question is asking how much
more it costs to buy 8 gallons of gasoline with a car wash than it costs to buy 7 gallons
of gasoline with a car wash. The difference would be the cost of the eight gallon. The
cost of buying 7 gallons of gasoline (at $1 per gallon) with a car wash is ($1 X 7) +
$4.99 = $11.99. The cost of buying 8 gallons of gasoline (at $1 per gallon) with a car
wash is ($1 X 8) + $4.00 = $12.00. Thus, the cost of getting the eight gallon is $12.00 -
$11.99 = $0.01, only 1 cent.
Because people respond to incentives, we would expect that if the average salary of
accountants increases by 50 percent while the average salary of teachers increases by
20 percent, CORRECT ANSWER students will shift majors from education to
accounting.
Sometimes, safety laws can cause people to make choices that result in them being
less safe. For example, a law requiring seat belts in cars cause drivers to drive less
carefully, resulting in more accidents. This is an example of the principle that
CORRECT ANSWER people respond to incentives. - The seat belt reduces the
likelihood of death or a serious injury from a car accident. Drivers respond to this
incentive by driving less carefully, causing more accidents and pedestrian deaths.
Penny is a piano player and Dan is a tile layer. If Penny teaches Dan's daughter to play
the piano in exchange for Dan tiling her kitchen floor, CORRECT ANSWER both Penny
and Dan are made better off by trade.
If the United States decides to trade with Mexico, we know that CORRECT ANSWER
Mexico and the United States can both benefit.
The economy of the former Soviet Union is best described as a CORRECT ANSWER
centrally planned economy.
The decisions of firms and households are guided by prices and self-interest in a
CORRECT ANSWER market economy
Adam Smith's "invisible hand" refers to CORRECT ANSWER the ability of free markets
to reach desirable outcomes, despite the self-interest of market participants.
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