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Quiz #1 - Full [Only 10 questions per variant]

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Hell on Earth Economics [Teacher: Abdinova Makpal ; Final Exam + Quizzes] ▼ (Quiz #1 [Chapters 1-3, 4-5, 6-9]) Quiz sobre Quiz #1 - Full [Only 10 questions per variant], criado por Good Guy Beket em 29-11-2018.
Good Guy Beket
Quiz por Good Guy Beket, atualizado more than 1 year ago
Good Guy Beket
Criado por Good Guy Beket quase 8 anos atrás
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Resumo de Recurso

Questão 1

Questão
When the government redistributes income with taxes and welfare, the economy becomes more efficient.
Responda
  • True
  • False

Questão 2

Questão
When economists say, "There is no such thing as a free lunch," they mean that all economic decisions involve trade-offs.
Responda
  • True
  • False

Questão 3

Questão
Adam Smith's “invisible hand” concept describes how corporate business reaches into the pockets of consumers like an “invisible hand.”
Responda
  • True
  • False

Questão 4

Questão
Rational people act only when the marginal benefit of the action exceeds the marginal cost.
Responda
  • True
  • False

Questão 5

Questão
The European Union will benefit economically if we eliminate trade with Asian countries because its citizens will be forced to produce more of their own cars and clothes.
Responda
  • True
  • False

Questão 6

Questão
When a jet flies overhead, the noise it generates is an externality.
Responda
  • True
  • False

Questão 7

Questão
A tax on alcoholic drinks raises the price of alcoholic drinks and provides an incentive for consumers to drink more.
Responda
  • True
  • False

Questão 8

Questão
An unintended consequence of public support for higher education is that low tuition provides an incentive for many people to attend state universities even if they have no desire to learn anything.
Responda
  • True
  • False

Questão 9

Questão
Sue is better at cleaning and Bob is better at cooking. It will take fewer hours to eat and clean if Bob specializes in cooking and Sue specializes in cleaning than if they share the household duties evenly.
Responda
  • True
  • False

Questão 10

Questão
High and persistent inflation is caused by excessive growth in the quantity of money in the economy.
Responda
  • True
  • False

Questão 11

Questão
Economic models must mirror reality or they are of no value.
Responda
  • True
  • False

Questão 12

Questão
Assumptions make the world easier to understand because they simplify reality and focus our attention.
Responda
  • True
  • False

Questão 13

Questão
It is reasonable to assume that the world is composed of only one person when modelling international trade.
Responda
  • True
  • False

Questão 14

Questão
When people act as scientists, they must try to be objective.
Responda
  • True
  • False

Questão 15

Questão
If an economy is operating on its production possibilities frontier, it must be using its resources efficiently.
Responda
  • True
  • False

Questão 16

Questão
If an economy is operating on its production possibilities frontier, it must produce less of one good if it produces more of another.
Responda
  • True
  • False

Questão 17

Questão
Points outside the production possibilities frontier are attainable but inefficient.
Responda
  • True
  • False

Questão 18

Questão
If an economy were experiencing substantial unemployment, the economy is producing inside the production possibilities frontier.
Responda
  • True
  • False

Questão 19

Questão
The production possibilities frontier is bowed outward because the trade-offs between the production of any two goods are constant.
Responda
  • True
  • False

Questão 20

Questão
An advance in production technology would cause the production possibilities curve to shift outward.
Responda
  • True
  • False

Questão 21

Questão
If Japan has an absolute advantage in the production of an item, it must also have a comparative advantage in the production of that item.
Responda
  • True
  • False

Questão 22

Questão
Comparative advantage, not absolute advantage, determines the decision to specialize in production.
Responda
  • True
  • False

Questão 23

Questão
Absolute advantage is a comparison based on productivity.
Responda
  • True
  • False

Questão 24

Questão
Self-sufficiency is the best way to increase one's material welfare.
Responda
  • True
  • False

Questão 25

Questão
Comparative advantage is a comparison based on opportunity cost.
Responda
  • True
  • False

Questão 26

Questão
If a producer is self-sufficient, the production possibilities frontier is also the consumption possibilities frontier.
Responda
  • True
  • False

Questão 27

Questão
If a country's workers can produce 5 hamburgers per hour or 10 bags of French fries per hour, absent trade, the price of 1 bag of fries is 2 hamburgers.
Responda
  • True
  • False

Questão 28

Questão
If producers have different opportunity costs of production, trade will allow them to consume outside their production possibilities frontiers.
Responda
  • True
  • False

Questão 29

Questão
If trade benefits one country, its trading partner must be worse off due to trade.
Responda
  • True
  • False

Questão 30

Questão
Talented people that are the best at everything have a comparative advantage in the production of everything.
Responda
  • True
  • False

Questão 31

Questão
A perfectly competitive market consists of products that are all slightly different from one another.
Responda
  • True
  • False

Questão 32

Questão
An oligopolistic market has only a few sellers.
Responda
  • True
  • False

Questão 33

Questão
The law of demand states that an increase in the price of a good decreases the demand for that good.
Responda
  • True
  • False

Questão 34

Questão
If apples and oranges are substitutes, an increase in the price of apples will decrease the demand for oranges.
Responda
  • True
  • False

Questão 35

Questão
If golf clubs and golf balls are complements, an increase in the price of golf clubs will decrease the demand for golf balls.
Responda
  • True
  • False

Questão 36

Questão
If consumers expect the price of shoes to rise, there will be an increase in the demand for shoes today.
Responda
  • True
  • False

Questão 37

Questão
The law of supply states that an increase in the price of a good increases the quantity supplied of that good.
Responda
  • True
  • False

Questão 38

Questão
An increase in the price of steel will shift the supply of cars to the right.
Responda
  • True
  • False

Questão 39

Questão
When the price of a good is below the equilibrium price, it causes a surplus.
Responda
  • True
  • False

Questão 40

Questão
The market supply curve is the horizontal summation of the individual supply curves.
Responda
  • True
  • False

Questão 41

Questão
If the quantity demanded of a good is sensitive to a change in the price of that good, demand is said to be price inelastic.
Responda
  • True
  • False

Questão 42

Questão
Using the midpoint method to calculate elasticity, if an increase in the price of pencils from €0.10 to €0.20 reduces the quantity demanded from 1000 pencils to 500 pencils, then the demand for pencils is unit price elastic.
Responda
  • True
  • False

Questão 43

Questão
The demand for tyres should be more inelastic than the demand for Michelin brand tyres.
Responda
  • True
  • False

Questão 44

Questão
The demand for aspirin over one month should be more elastic than the demand for aspirin over one year.
Responda
  • True
  • False

Questão 45

Questão
The price elasticity of demand is defined as the percentage change in the price of that good divided by the percentage change in quantity demanded of that good.
Responda
  • True
  • False

Questão 46

Questão
If the cross-price elasticity of demand between two goods is positive, the goods are likely to be complements.
Responda
  • True
  • False

Questão 47

Questão
If the demand for a good is price inelastic, an increase in its price will increase total revenue in that market.
Responda
  • True
  • False

Questão 48

Questão
The demand for a necessity such as petrol tends to be elastic.
Responda
  • True
  • False

Questão 49

Questão
If a demand curve is linear, the price elasticity of demand is constant along it.
Responda
  • True
  • False

Questão 50

Questão
If the income elasticity of demand for a bus ride is negative, then a bus ride is an inferior good.
Responda
  • True
  • False

Questão 51

Questão
If the equilibrium price of petrol is €1.00 per litre and the government places a price ceiling on petrol of €1.50 per litre, the result will be a shortage of petrol.
Responda
  • True
  • False

Questão 52

Questão
A price ceiling set below the equilibrium price causes a surplus.
Responda
  • True
  • False

Questão 53

Questão
A price floor set above the equilibrium price is a binding constraint.
Responda
  • True
  • False

Questão 54

Questão
The shortage of housing caused by a binding rent control is likely to be more severe in the long run when compared to the short run.
Responda
  • True
  • False

Questão 55

Questão
The minimum wage helps all teenagers because they receive higher wages than they would otherwise.
Responda
  • True
  • False

Questão 56

Questão
A 10 per cent increase in the minimum wage is more likely to raise unemployment among teenage workers than among mid-career professional workers
Responda
  • True
  • False

Questão 57

Questão
A price ceiling that is not a binding constraint today could cause a shortage in the future if demand were to increase and raise the equilibrium price above the fixed price ceiling.
Responda
  • True
  • False

Questão 58

Questão
A price floor in a market always creates a surplus in that market.
Responda
  • True
  • False

Questão 59

Questão
A €10 tax on football boots will always raise the price that the buyers pay for football boots by €10.
Responda
  • True
  • False

Questão 60

Questão
The ultimate burden of a tax falls most heavily on the side of the market that is less elastic.
Responda
  • True
  • False

Questão 61

Questão
Total revenue equals the quantity of output the firm produces times the price at which it sells its output.
Responda
  • True
  • False

Questão 62

Questão
Wages and salaries paid to workers are an example of implicit costs of production.
Responda
  • True
  • False

Questão 63

Questão
If total revenue is €100, explicit costs are €50, and implicit costs are €30, then accounting profit equals €50.
Responda
  • True
  • False

Questão 64

Questão
If there are implicit costs of production, accounting profits will exceed economic profits.
Responda
  • True
  • False

Questão 65

Questão
When a production function gets flatter, the marginal product is increasing.
Responda
  • True
  • False

Questão 66

Questão
If a firm continues to employ more workers within the same size factory, it will eventually experience diminishing marginal product
Responda
  • True
  • False

Questão 67

Questão
If the production function for a firm exhibits diminishing marginal product, the corresponding total cost curve for the firm will become flatter as the quantity of output expands.
Responda
  • True
  • False

Questão 68

Questão
Fixed costs plus variable costs equal total costs.
Responda
  • True
  • False

Questão 69

Questão
Average total costs are total costs divided by marginal costs.
Responda
  • True
  • False

Questão 70

Questão
When marginal costs are below average total costs, average total costs must be falling.
Responda
  • True
  • False

Questão 71

Questão
An oligopoly is a market structure in which many firms sell products that are similar but not identical.
Responda
  • True
  • False

Questão 72

Questão
The market for crude oil is an example of an oligopolistic market.
Responda
  • True
  • False

Questão 73

Questão
The unique feature of an oligopoly market is that the actions of one seller have a significant impact on the profits of all of the other sellers in the market.
Responda
  • True
  • False

Questão 74

Questão
When firms cooperate with one another, it is generally good for society as a whole.
Responda
  • True
  • False

Questão 75

Questão
When firms cooperate with one another, it is generally good for the cooperating firms.
Responda
  • True
  • False

Questão 76

Questão
When oligopolists collude and form a cartel, the outcome in the market is similar to that generated by a perfectly competitive market.
Responda
  • True
  • False

Questão 77

Questão
The price and quantity generated by a Nash equilibrium is closer to the competitive solution than the price and quantity generated by a cartel.
Responda
  • True
  • False

Questão 78

Questão
The greater the number of firms in the oligopoly, the more the outcome of the market looks like that generated by a monopoly.
Responda
  • True
  • False

Questão 79

Questão
Cooperation is easily maintained in an oligopoly because cooperation maximizes each individual firm's profits.
Responda
  • True
  • False

Questão 80

Questão
The prisoners' dilemma demonstrates why it is difficult to maintain cooperation even when cooperation is mutually beneficial.
Responda
  • True
  • False

Questão 81

Questão
The factors of production are labour, land, and money.
Responda
  • True
  • False

Questão 82

Questão
The demand for a factor is considered to be a derived demand because it is derived from the firm's decision to supply output in another market.
Responda
  • True
  • False

Questão 83

Questão
For a competitive profit-maximizing firm, the demand curve for a factor is the value of the marginal product curve for that factor.
Responda
  • True
  • False

Questão 84

Questão
A factor exhibits diminishing marginal productivity if employing additional units of the factor reduces output.
Responda
  • True
  • False

Questão 85

Questão
If there is an increase in the equilibrium wage, there must have been an increase in the value of the marginal product of labour.
Responda
  • True
  • False

Questão 86

Questão
An increase in the demand for textbooks will increase the value of the marginal product of textbook writers.
Responda
  • True
  • False

Questão 87

Questão
A decrease in the supply of labour reduces the value of the marginal product of labour, decreases the wage, and decreases employment.
Responda
  • True
  • False

Questão 88

Questão
The only way for the value of the marginal product of a factor to rise is for the price of the output produced by the factor to rise.
Responda
  • True
  • False

Questão 89

Questão
An increase in the demand for pencils will likely improve the fortunes of both the pencil factory and the workers in the pencil factory.
Responda
  • True
  • False

Questão 90

Questão
The demand for labour is downward sloping because the production function exhibits diminishing marginal productivity of labour.
Responda
  • True
  • False

Questão 91

Questão
For an economy as a whole, income equals expenditure because the income of the seller must be equal to the expenditure of the buyer.
Responda
  • True
  • False

Questão 92

Questão
The production of an apple contributes more to GDP than the production of a gold ring because food is necessary for life itself.
Responda
  • True
  • False

Questão 93

Questão
If a timber yard sells €1,000 of timber to a carpenter and the carpenter uses the timber to build a garage which he sells for €5,000, the contribution to GDP is €6,000.
Responda
  • True
  • False

Questão 94

Questão
A country with a larger GDP per person generally has a greater standard of living or quality of life than a country with a smaller GDP per person.
Responda
  • True
  • False

Questão 95

Questão
If nominal GDP in 2005 exceeds nominal GDP in 2004, real output must have risen.
Responda
  • True
  • False

Questão 96

Questão
If UK GDP exceeds UK GNP, then foreigners produce more in the UK than UK citizens produce in the rest of the world.
Responda
  • True
  • False

Questão 97

Questão
Wages are an example of a transfer payment because there is a transfer of payment from the firm to the worker.
Responda
  • True
  • False

Questão 98

Questão
In the UK, investment is the largest component of GDP.
Responda
  • True
  • False

Questão 99

Questão
Nominal GDP employs current prices to value output while real GDP employs constant base-year prices to value output.
Responda
  • True
  • False

Questão 100

Questão
A new car produced in 2004, but first sold in 2005, should be counted in 2005 GDP because that is when it was first sold as a final good.
Responda
  • True
  • False

Questão 101

Questão
An increase in the price of imported cameras is captured by the CPI but not by the GDP deflator.
Responda
  • True
  • False

Questão 102

Questão
An increase in the price of helicopters purchased by the UK armed forces is captured by the CPI.
Responda
  • True
  • False

Questão 103

Questão
Because an increase in petrol prices causes consumers to ride their bikes more and drive their cars less, the CPI tends to underestimate the cost of living.
Responda
  • True
  • False

Questão 104

Questão
An increase in the price of diamonds will have a greater impact on the CPI than an equal percentage increase in the price of food because diamonds are so much more expensive.
Responda
  • True
  • False

Questão 105

Questão
The "base year" in a price index is the benchmark year against which other years are compared.
Responda
  • True
  • False

Questão 106

Questão
If the CPI rises at 5 percent per year, then every individual in the country needs exactly a 5 percent increase in their income for their standard of living to remain constant.
Responda
  • True
  • False

Questão 107

Questão
The producer price index (PPI) is constructed to measure the change in price of total production.
Responda
  • True
  • False

Questão 108

Questão
If the Office of National Statistics fails to recognize that recently produced cars can be driven for many more miles than older models, then the CPI tends to overestimate the cost of living.
Responda
  • True
  • False

Questão 109

Questão
If your wage rises from €500 per week to €625 per week while the CPI rises from 112 to 121, you should feel an increase in your standard of living.
Responda
  • True
  • False

Questão 110

Questão
The largest category of goods and services in the CPI is food and non-alcoholic beverages.
Responda
  • True
  • False

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