EXAM 1

Question 1 of 105

1

A theory that has won virtually universal acceptance is a:

Select one of the following:

model.
hypothesis
law.
variable.

Explanation

Question 2 of 105

1

When we are forced to make choices we are facing the concept of:

Select one of the following:

ceteris paribus.
free goods
scarcity
the margin.

Explanation

Question 3 of 105

1

Statements that are a hypothesis or statement of fact are:

Select one of the following:

pecuniary.
positive.
nominal.
normative

Explanation

Question 4 of 105

1

The economic way of thinking includes:

Select one of the following:

more attention paid to benefits rather than the costs involved in any choice.
the assumption that individuals choose to average out some objective.
emphasis on how choices are made at the margin.
the notion that the industrialized nations have solved the problem of scarcity

Explanation

Question 5 of 105

1

A feature that distinguishes economists' approach to making choices is (are):

Select one of the following:

assigning opportunity costs a major role in their analyses of choices.
assuming individuals make choices to maximize objectives
emphasizing that choices are made at the margin
all of the above.

Explanation

Question 6 of 105

1

The statement that the minimum wage needs to be increased is a:

Select one of the following:

positive statement.
normative statement
condition contained in the fallacy of false cause.
scientific conclusion based on marginal analysis.

Explanation

Question 7 of 105

1

Economics, generally speaking, is primarily concerned with:

Select one of the following:

the operation of the bond and stock markets.
how people choose among the alternatives available to them.
the issues of income inequality or income equality.
ceteris paribus, the scientific method, and the margin

Explanation

Question 8 of 105

1

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Select one of the following:

chemistry.
economics.
history.
the humanities

Explanation

Question 9 of 105

1

Scarcity is determined by the existence of bad alternatives

Select one of the following:

True
False

Explanation

Question 10 of 105

1

The value of the next-best choice not chosen is called opportunity cost.

Select one of the following:

True
False

Explanation

Question 11 of 105

1

Economists are:

Select one of the following:

concerned with developing theories but not interested in solving problems.
interested in solving problems but not concerned with developing theories.
reluctant to predict changes in variables such as prices, employment, and spending.
not always in agreement on the best way to implement policy decisions.

Explanation

Question 12 of 105

1

Unemployment and inflation are major topics in macroeconomics.

Select one of the following:

True
False

Explanation

Question 13 of 105

1

The best example of an increase in capital is:

Select one of the following:

The discovery of new oil reserves.
new computer software.
legal immigration of computer programmers.
conversion of military facilities to civilian use

Explanation

Question 14 of 105

1

The slope of a production possibilities curve is based on opportunity cost.

Select one of the following:

True
False

Explanation

Question 15 of 105

1

The slope of a typical production possibilities curve is:

Select one or more of the following:

0.
vertical.
positive.
negative.

Explanation

Question 16 of 105

1

Suppose the economy is operating at point C. The opportunity cost of producing the fourth freight train would be:

Drag the answer into the correct orange point.

19 tons of sugar.

45 tons of sugar.

80 tons of sugar

3 freight trains.

Explanation

Question 17 of 105

1

An economy that has the lowest cost for producing a particular good is said to have a(n):

Select one of the following:

technological advantage
comparative advantage.
convex news production possibilities curve.
all of the above are correct

Explanation

Question 18 of 105

1

A factor of production that has been produced for use in the production of other goods and services is:

Select one of the following:

labor.
money.
capital.
natural resources.

Explanation

Question 19 of 105

1

Which of the following explains why the U.S. economy produces more than the Chinese economy?

Select one of the following:

The United States buys more goods from China than China buys from the United States.
In comparison to China, the United States has stronger environmental protection rules.
The population of the United States is less than 1/4 the population of China.
The United States has more capital per worker available than China.

Explanation

Question 20 of 105

1

If the opportunity cost of manufacturing machinery is lower in the United States than in Britain and the opportunity cost of manufacturing sweaters is higher in the United States than in Britain, then the United States will:

Select one of the following:

export both sweaters and machinery to Britain
import both sweaters and machinery from Britain.
export sweaters to Britain and import machinery from Britain.
import sweaters from Britain and export machinery to Britain.

Explanation

Question 21 of 105

1

Which of the following statements is false?

Select one of the following:

Improvements in technology make most workers worse off because they lose their jobs to capital.
Technological improvements affect most industries, including oil exploration, fast-food restaurants, and pet stores.
When technology improves or changes, some jobs are lost
Technological improvements that make capital more productive often leads to higher wages for labor.

Explanation

Question 22 of 105

1

Suppose the economy is operating at point B. The opportunity cost of producing the third freight train would be:

Drag the answer into the correct orange point.

6 tons of sugar.

19 tons of sugar.

45 tons of sugar.

80 tons of sugar.

Explanation

Question 23 of 105

1

An economy is said to have a comparative advantage in the production of a good if it can:

Select one of the following:

produce that good with more resources than another economy.
produce that good with a higher opportunity cost than another economy.
produce that good outside its production possibilities curve.
produce the good at a lower opportunity cost than another economy.

Explanation

Question 24 of 105

1

The difference between iron ore deposits and the steel produced from these deposits that is later used to make factory equipment illustrates the difference between:

Select one of the following:

labor and a natural resource.
labor and capital.
a natural resource and capital.
a natural resource and entrepreneurship.

Explanation

Question 25 of 105

1

Britain imports some goods and exports other goods primarily because of:

Select one of the following:

free goods.
specialization.
unemployment.
self-sufficiency.

Explanation

Question 26 of 105

1

The North Korean economy is currently classified as a mixed economy.

Select one of the following:

True
False

Explanation

Question 27 of 105

1

The concept of comparative advantage is based upon:

Select one of the following:

absolute labor productivity
relative labor costs.
dollar prices of labor.
relative opportunity costs

Explanation

Question 28 of 105

1

One of the two criteria for a resource to be considered capital is that it must:

Select one of the following:

occur naturally.
be part of a factory or building.
be a skill or talent possessed by a person.
be possible to use it to produce other goods and services.

Explanation

Question 29 of 105

1

The textbook classifies technology as knowledge and entrepreneurs as persons who seek profit.

Select one of the following:

True
False

Explanation

Question 30 of 105

1

In a market capitalist economy:

Select one of the following:

factors of production are owned privately and decisions about their use are basically made by individuals.
factors of production are owned by the government but decisions about their use are made privately.
private ownership exists but decisions about resource allocation are usually made centrally by the government.
there is no role for the government.

Explanation

Question 31 of 105

1

In the textbook, the prices of the factors of production, returns from related goods, technology, expectations regarding future prices, and the number of sellers are called:

Select one of the following:

demand shifters.
supply prices.
market realities
supply shifters.

Explanation

Question 32 of 105

1

If the price of chocolate-covered peanuts is 40 cents, the price will:

Drag the answer into the correct orange point.

remain unchanged.

fall to 30 cents.

rise to 50 cents.

rise to 60 cents.

Explanation

Question 33 of 105

1

In a competitive market, when price is below the equilibrium price, there will be pressure for the price to:

Select one of the following:

fall.
stay the same
rise
change only if demand and/or supply change

Explanation

Question 34 of 105

1

Click on the orange point and select the correct answer.

A decrease in the fee charged for videotape rentals would result in a change illustrated by:

Explanation

Question 35 of 105

1

Select from the dropdown lists to complete the text.

In the 1990s, the Monks of St. Benedict's the Monks determined that their ( opportunity costs, profits, operating costs ) were ( too low, too high ) in the egg and cookie business, so they ( went out of business, opened a new business, switched to providing private retreats . )

Explanation

Question 36 of 105

1

An increase in supply is caused by:

Select one of the following:

an increase in resource prices.
a decrease in the number of sellers in the market.
suppliers' expectations of higher prices in the future.
an advancement in the technology for producing the good.

Explanation

Question 37 of 105

1

Which of the following will not cause the demand for milk (a normal good) to increase in the current time period?

Select one of the following:

a fall in the price of milk
an increase in income
an expected increase in milk prices
a decrease in the price of cookies (a complement)

Explanation

Question 38 of 105

1

If a demand curve shifts to the left, then:

Select one of the following:

the equilibrium price would go up and the equilibrium quantity would go down.
the equilibrium price would go down and the equilibrium quantity would go up.
a lower equilibrium price and quantity would result.
a higher equilibrium price and quantity would result.

Explanation

Question 39 of 105

1

A decrease in supply is caused by:

Select one of the following:

a decrease in resource prices.
a decrease in the number of sellers in the market.
suppliers' expectations of lower prices in the future.
an advancement in the technology for producing the good.

Explanation

Question 40 of 105

1

The price of cotton rises. What happens in the market for cotton shirts?

Select one of the following:

The equilibrium price falls and the equilibrium quantity rises.
The equilibrium price rises and the equilibrium quantity falls
The equilibrium price and quantity rise.
The equilibrium price and quantity fall.

Explanation

Question 41 of 105

1

An increase in demand and a decrease in supply, will lead to a(n) in equilibrium quantity and a(n) in equilibrium price.

Select one of the following:

decrease; decrease
indeterminate change; increase
indeterminate change; decrease
increase; indeterminate change

Explanation

Question 42 of 105

1

A shortage will exert pressures for the price to decrease.

Select one of the following:

True
False

Explanation

Question 43 of 105

1

Which of the following would result in a movement along the demand curve?

Select one of the following:

a change in preferences
an increase in the number of buyers
an increase in the number of suppliers
a decrease in income

Explanation

Question 44 of 105

1

According to the textbook, demand and supply determine prices, and prices allocate scarce resources in the economy.

Select one of the following:

True
False

Explanation

Question 45 of 105

1

If both the demand for a product and the supply of it increase, then the equilibrium quantity will and the equilibrium price will .

Select one of the following:

decrease; increase
decrease; decrease
decrease; remain constant
increase; either increase, decrease, or remain constant

Explanation

Question 46 of 105

1

A negative relationship between the quantity demanded and price is called the law of ______.

Select one of the following:

demand
diminishing marginal returns
market clearing
supply

Explanation

Question 47 of 105

1

Given the demand curve, what is the price some buyers are willing and able to pay for 3 units?

Drag the answer into the correct orange point.

$2

$4

$6

$8

Explanation

Question 48 of 105

1

Given the initial equilibrium of S1 and D, any price lower than will create pressure for the price to .

Drag the answer into the correct orange point.

$2.00; fall

$2.50; rise

$3.00; rise

none of the above are true

Explanation

Question 49 of 105

1

A price above the equilibrium price will:

Select one of the following:

result in quantity supplied being less than quantity demanded.
result in a shortage
create pressure for price to fall.
tend to rise over time..

Explanation

Question 50 of 105

1

The equilibrium quantity and the equilibrium price are bags and cents.

Drag the answer into the correct orange point.

140; 40

175; 60

175; 80

210; 50

Explanation

Question 51 of 105

1

Which of the following is a demand factor in the health-care market?

Select one of the following:

productivity in health care
treatment decisions of doctors
changes in health care technology
All of the above are demand factors.

Explanation

Question 52 of 105

1

The equilibrium price established by supply and demand could be called a "just right" price because:

Select one of the following:

any price above it would be "too high" and cause a shortage.
any price below it would be "too low" and cause a surplus.
it is the only price where the quantity demanded and the quantity supplied are equal.
of all of the above.

Explanation

Question 53 of 105

1

According to the textbook, which of the following are suggestions to limit health-care spending?

Select one of the following:

requiring patients to pay a larger share
government regulation
the use of insurance companies that limit spending
all of the above

Explanation

Question 54 of 105

1

Technological improvements in the health-care industry have been a primary factor in the increase in health-care costs.

Select one of the following:

True
False

Explanation

Question 55 of 105

1

The United States is confronted with two significant problems in health care. They are:

Select one of the following:

increasing the demand for health care and decreasing the supply of health care.
the need to build more hospitals and the slow rate of technological change in health care.
health-care cost and how to limit spending on health care.
all of the above

Explanation

Question 56 of 105

1

Third-party payer systems for health-care services include payments made by:

Select one of the following:

doctors.
patients.
hospitals.
insurance companies.

Explanation

Question 57 of 105

1

A market price support policy attempts to assist the farm industry by:

Select one of the following:

taxing the incomes of farmers.
directly subsidizing the incomes of farmers
establishing price floors in farm output markets.
reducing the amount of resources used in farm production.

Explanation

Question 58 of 105

1

When the price of P2 becomes available to the consumer because of insurance:

Select one of the following:

health-care costs are now OP3BQ2, of which OP3CQ2 is paid by consumers and P2P3BQ2 is paid by insurance.
health-care costs are now OP3BQ2, of which P2P3BQ2 is paid by consumers and OP2CQ2 is paid by insurance.
the new quantity of health care is Q2.
the new quantity of health care is Q1.

Explanation

Question 59 of 105

1

In terms of equity, existing farm policies tend to help:

Select one of the following:

all farmers equally
none of the farmers.
poor farmers more than wealthy farmers.
wealthy farmers more than poor farmers

Explanation

Question 60 of 105

1

If the government sets out to help low-income people by establishing a maximum amount for rent:

Select one of the following:

a price floor has been set and a shortage of rental units may occur.
a price ceiling has been set and a shortage of rental units may occur.
in the long run more rental units will appear.
poor people will definitely be helped.

Explanation

Question 61 of 105

1

The increase in the cost of health care was caused in part:

Select one of the following:

by technology, which has created new and costly treatments.
by doctors' receiving incomes above the market level.
by the government's fixing prices in health care.
because insurance companies have been left out of health care.

Explanation

Question 62 of 105

1

In the market for health care:

Select one of the following:

equilibrium occurs at the intersection of supply and demand, just as it does with most goods.
the effect of third-party payers decreases the price that consumers pay.
providers are encouraged to supply a greater quantity than they would without third-party payers.
B and C are true.

Explanation

Question 63 of 105

1

During the 1930s, the role of the federal government in the U.S. agricultural industry:

Select one of the following:

remained unchanged from the earlier decades.
decreased substantially.
increased substantially.
decreased marginally.

Explanation

Question 64 of 105

1

A market price support policy attempts to assist the farm industry by:

Select one of the following:

taxing the incomes of farmers.
directly subsidizing the incomes of farmers.
establishing price floors in farm output markets.
reducing the amount of resources used in farm production.

Explanation

Question 65 of 105

1

Third-party payer systems are most likely to the quantity of health care .

Select one of the following:

increase; demanded
decrease; demanded
not change; supplied
decrease; supplied

Explanation

Question 66 of 105

1

In the stock market the demand for stocks in recent years has been greatly affected by demographic change and rising incomes.

Select one of the following:

True
False

Explanation

Question 67 of 105

1

In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was primarily due to technological change and an increase in the number of sellers.

Select one of the following:

True
False

Explanation

Question 68 of 105

1

20 percent of total health-care spending is paid by private and government insurance

Select one of the following:

True
False

Explanation

Question 69 of 105

1

An arrangement in which consumers choose their health-care services while other institutions pay a share of the cost of those services is called a(n) ________ payer system.

Select one of the following:

provider fees
third-party
insurance premiums
catastrophic insurance

Explanation

Question 70 of 105

1

The Case in Point on the Oregon Plan makes it clear that the state sets a limit on how much it will spend but not on what procedures it will cover.

Select one of the following:

True
False

Explanation

Question 71 of 105

1

During the Great Depression:

Select one of the following:

agriculture was hit particularly hard.
prices received by farmers rose by nearly 2/3 between 1930 and 1933.
farm legislation in the 1930s sought to reduce the number of farms and farm income
all of the above are true.

Explanation

Question 72 of 105

1

Although health-care costs have increased recently in absolute terms, they have fallen as a percentage of total output.

Select one of the following:

True
False

Explanation

Question 73 of 105

1

When the price of $20 per visit becomes available to the consumer because of insurance:

Select one of the following:

health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance.
health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance .
the new quantity of physician office visits is 1 million visits per week.
both A and C are true.

Explanation

Question 74 of 105

1

Farm legislation has historically tried to increase farm income by:

Select one of the following:

guaranteeing a minimum price to farmers.
imposing limits on production.
insulating farmers from fluctuations in prices
doing all of the above.

Explanation

Question 75 of 105

1

The price elasticity of demand for lettuce has been estimated to be -2.58. If an insect infestation destroys 10 percent of the nation's lettuce crop, how will that affect total expenditures on lettuce, all other things unchanged?

Select one of the following:

total expenditures will remain unchanged
total expenditures will fall
total expenditures will rise
not enough information is given to answer the question

Explanation

Question 76 of 105

1

The income elasticity of demand for peaches has been estimated to be 1.43. If income grows by 15 percent in a period, how will that affect total expenditures on peaches in that period, all other things unchanged?

Select one of the following:

total expenditures will rise
total expenditures will fall
total expenditures will remain unchanged
not enough information is given to answer the question

Explanation

Question 77 of 105

1

The price elasticity of demand for the segment FG is:

Drag the answer into the correct orange point.

0.

0.09

-0.5

greater than 1 (absolute value).

Explanation

Question 78 of 105

1

The concept of cross price elasticity of demand refers to the:

Select one of the following:

ratio of the percentage change in the quantity demanded of a good at a specific price to the percentage change in the price of a related good.
ratio of the percentage change in the price of one good to the percentage change in the quantity demanded of a related good at a specific price.
ratio of the price elasticity of a normal good to the price elasticity of a related good.
change in income due to a change in the price of a related good.

Explanation

Question 79 of 105

1

If the income elasticity of demand for a good is positive, the good is said to be a(n):

Select one of the following:

inferior good
substitute good.
normal good.
positive good

Explanation

Question 80 of 105

1

A shirt manufacturer sold 10 dozen shirts per day when the price was $4 per shirt but sold 15 dozen shirts per day when the price was $3 per shirt. Hence, the absolute value of the price elasticity of demand is:

Select one of the following:

greater than zero but less than 1.
equal to 1.
greater than 1 but less than 3.
greater than 3

Explanation

Question 81 of 105

1

If the price of chocolate-covered peanuts increases and the demand for strawberries does not change, this indicates that these two goods are:

Select one of the following:

unrelated goods
inferior goods.
substitute goods
complementary goods.

Explanation

Question 82 of 105

1

If an increase in income leads to a decrease in the demand for a good, then the good is said to be:

Select one of the following:

normal.
a luxury.
inferior.
a staple or necessity.

Explanation

Question 83 of 105

1

If your purchases of shoes decrease from 11 pairs per year to 9 pairs per year when the price of shirts increases from $8 to $12, then, for you, shoes and shirts are considered:

Select one of the following:

inferior goods.
superior goods.
substitute goods
complementary goods

Explanation

Question 84 of 105

1

The concept of price elasticity of supply can be applied to labor:

Select one of the following:

to show the amount of income earned at different wage rates.
to show how the quantity of labor supplied responds to changes in wages and salaries.
to determine how responsive the demand for labor is to changes in wages and salaries.
to do all of the above.

Explanation

Question 85 of 105

1

An important determinant of the price elasticity of demand is the:

Select one of the following:

importance in household budgets.
level of technology
quantity of the good supplied.
extent of government regulation.

Explanation

Question 86 of 105

1

Suppose the demand curve has a slope equal to negative 1. The price elasticity of demand at any point on this demand curve is:

Select one of the following:

infinite.
equal to zero.
greater than 1, but less than infinite.
not described by any of the above.

Explanation

Question 87 of 105

1

Assume the supply curve shifts to the right by a given amount at each price. Price in the market will decline the most if demand is more:

Select one of the following:

price elastic and supply is more price inelastic
price inelastic and supply is more price inelastic.
price elastic and supply is more price elastic.
price inelastic and supply is more price elastic.

Explanation

Question 88 of 105

1

Demand is price inelastic between:

Drag the answer into the correct orange point.

$0.40 and $0.50.

$0.50 and $0.60.

$0.60 and $0.70.

$0.70 and $0.80.

Explanation

Question 89 of 105

1

If an increase in the price of a good leads to an increase in total revenue, then:

Select one of the following:

the supply curve must be price inelastic.
the demand curve must be price elastic.
the supply curve is price elastic
none of the above is necessarily true; there is no information given regarding the price elasticity of supply.

Explanation

Question 90 of 105

1

The cross price elasticity of demand for substitutes goods is:

Select one of the following:

negative.
positive.
equal to 1.
positive only for normal goods.

Explanation

Question 91 of 105

1

If the price of emergency visits to the doctor were to rise, we would expect:

Select one of the following:

a significant decline in the number of emergency visits to the doctor
only a slight decline is the number of emergency visits to the doctor.
the number of emergency visits to the doctor to stay the same.
the total income of doctors to fall dramatically.

Explanation

Question 92 of 105

1

When the percentage change in quantity demanded is larger than the percentage change in price, demand is said to be price inelastic

Select one of the following:

True
False

Explanation

Question 93 of 105

1

The price elasticity of demand for the segment BC is:

Drag the answer into the correct orange point.

greater than 3.33 (absolute value).

-3.33.

-3.

-0.33.

Explanation

Question 94 of 105

1

Suppose that the cross price elasticity of demand for Mountain Dew with respect to the price of Coke is 0.7. A 10 percent increase in the price of Coke would:

Select one of the following:

reduce the demand for Mountain Dew by 10 percent.
reduce the demand for Mountain Dew by 7 percent.
increase the demand for Mountain Dew by 7 percent.
increase the demand for Mountain Dew by 10 percent.

Explanation

Question 95 of 105

1

The income elasticity of demand for ground beef has been estimated to be -0.197. If income falls by 10 percent in a period, how will that affect total expenditures on ground beef in that period, all other things unchanged?

Select one of the following:

total expenditures will rise
total expenditures will remain unchanged
total expenditures will fall
not enough information is given to answer the question

Explanation

Question 96 of 105

1

Because individuals are unlikely to reveal their demand for public goods, private firms will produce a _ quantity of public goods than is _ .

Select one of the following:

smaller; efficient
smaller; inefficient
greater; efficient
greater; inefficient

Explanation

Question 97 of 105

1

An efficient allocation of resources implies _______ allocation of goods and services.

Select one of the following:

an equitable
an inequitable
neither an equitable nor an inequitable
a maximum

Explanation

Question 98 of 105

1

Maximizing choices must be made within parameters imposed by:

Select one of the following:

a constraint.
a boundary.
a limit.
all of the above.

Explanation

Question 99 of 105

1

To be effective in facilitating exchange, property rights must be:

Select one of the following:

exclusive.
nontransferable
nonexclusive.
defined to give complete freedom to the owner to use the property in any way the owner chooses.

Explanation

Question 100 of 105

1

Suppose that the expected exam scores from studying economics for 0, 1, 2, or 3 hours are 65, 80, 90, and 95 points, respectively, while the expected exam scores for studying 0, 1, 2, or 3 hours of accounting are 50, 65, 70, and 70 points, respectively. With 3 total hours of study time, your combined scores can be maximized by spending _______ hours studying accounting.

Select one of the following:

0
1
2
3

Explanation

Question 101 of 105

1

Common property resources have never been a serious problem in the efficient allocation of resources.

Select one of the following:

True
False

Explanation

Question 102 of 105

1

Utility is the difference between a firm's revenue and its total economic cost.

Select one of the following:

True
False

Explanation

Question 103 of 105

1

Which of the following statements is (are) true?

Select one of the following:

An efficient allocation of resources maximizes the net benefit of each activity.
An efficient allocation of resources implies that the distribution of income is equitable.
Judgments about equity are positive judgments.
A and B are true.

Explanation

Question 104 of 105

1

A normal market supply curve reflects:

Select one of the following:

private benefits to sellers.
private costs to sellers.
social benefits to buyers.
external benefits to sellers.

Explanation

Question 105 of 105

1

If the price of popcorn is $0.50 per box and the price of peanuts is $0.25 per bag, and you have $10 to spend on both goods, the maximum quantity of popcorn that you can purchase is _______ boxes.

Select one of the following:

5
10
20
40

	Created by Mau Family about 10 years ago

Chapters 1 - 6

EXAM 1

Question 1 of 105

A theory that has won virtually universal acceptance is a:

Select one of the following:

Explanation

Question 2 of 105

When we are forced to make choices we are facing the concept of:

Select one of the following:

Explanation

Question 3 of 105

Statements that are a hypothesis or statement of fact are:

Select one of the following:

Explanation

Question 4 of 105

The economic way of thinking includes:

Select one of the following:

Explanation

Question 5 of 105

A feature that distinguishes economists' approach to making choices is (are):

Select one of the following:

Explanation

Question 6 of 105

The statement that the minimum wage needs to be increased is a:

Select one of the following:

Explanation

Question 7 of 105

Economics, generally speaking, is primarily concerned with:

Select one of the following:

Explanation

Question 8 of 105

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Select one of the following:

Explanation

Question 9 of 105

Scarcity is determined by the existence of bad alternatives

Select one of the following:

Explanation

Question 10 of 105

The value of the next-best choice not chosen is called opportunity cost.

Select one of the following:

Explanation

Question 11 of 105

Economists are:

Select one of the following:

Explanation

Question 12 of 105

Unemployment and inflation are major topics in macroeconomics.

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Question 13 of 105

The best example of an increase in capital is:

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Question 14 of 105

The slope of a production possibilities curve is based on opportunity cost.

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Question 15 of 105

The slope of a typical production possibilities curve is:

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Question 16 of 105

Suppose the economy is operating at point C. The opportunity cost of producing the fourth freight train would be:

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Question 17 of 105

An economy that has the lowest cost for producing a particular good is said to have a(n):

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Question 18 of 105

A factor of production that has been produced for use in the production of other goods and services is:

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Question 19 of 105

Which of the following explains why the U.S. economy produces more than the Chinese economy?

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Explanation

Question 20 of 105