Quiz
HW 2 ECON
Questions in this quiz (20)
1Attending college is a case where the ________________ exceeds the monetary cost.
- Abudget constraint
- Bmarginal analysis
- Copportunity cost
- Dmarginal utility
2Along the production possibilities frontier, the most efficient point of production depicted is:
- APoint B
- BPoint C
- CPoint D
- DAll points on the production possibilities frontier are equally efficient
3Most inefficient point depicted
- APoint A
- BPoint C
- CPoint D
- DPoint G
4Scarcity exists because of:
- Athe market mechanism
- Bspecialization and division of labor
- Cthe allocation of goods by prices
- Dunlimited wants and limited resources
5Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:
- Anothing, because he enjoys playing basketball more than studying.
- Bthe increase in skill he obtains from playing basketball for that hour.
- Cthe benefit to his grades from studying for an hour
- Dnothing, because he had a free pass into the sports complex to play basketball.
6The opportunity cost of attending university is likely to include all except which of the following?
- Athe cost of haircuts received during the school term
- Bthe income you forgo in order to attend classes
- Ctuition fees
- Dthe cost of required textbooks
7Possibility A Economics History
I 94 76
II 87 84
III 77 91
A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. The opportunity cost of scoring an 84 on the history exam rather than 76 is:- A10 points on the economics exam
- B8 points on the history exam
- C7 points on the economics exam
- D12 points on the economics exam
8The choice on a production possibilities set that is socially preferred, or the choice on an individual’s budget constraint that is personally preferred, will display ___________.
- Aallocative efficiency
- Bproduction possibilites frontier
- Ctrade-offs
- Dscarcity
9Marginal thinking is best demonstrated by:
- Achoosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time.
- Bdeciding to never purchase a coat made with animal skins or furs
- Cacquiring the information relevant to a choice before making that choice
- Dmeasuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake
10The marginal benefit of a slice of pizza is the:
- Atotal amount that a consumer is willing to pay for a whole pizza, divided by the number of slices
- Bdifference between the value of the slice to the consumer and the price of the slice
- Cmaximum amount that a consumer is willing to pay for the slice
- Dprice of the slice of pizza
11The lesson of __________ is to forget about the money that is irretrievably gone and instead to focus on the marginal costs and benefits of future options.
- Amarginal utility
- Bsunk costs
- Cmarginal analysis
- Dbudget constraints
12At Point A in the production possibilities graph shown above, the economy:
- Ais not using its resources efficiently
- Bis using its resources efficiently while producing clothing but no food.
- Cis using its resources efficiently while producing food but no clothing.
- Dis using its resources efficiently to produce both food and clothing.
13Philosophers draw a distinction between ___________________, which describe the world as it is, and normative statements, which describe how the world should be.
- Anegative statements
- Bpositive statments
- Ctradeoffs
- Dutilliarianism
14The law of ____ explains why people and societies rarely make all-or-nothing choices.
- Aconsumption
- Bmarginal analysis
- Cdiminishing marginal utility
- Dutility
15Which of the following would most likely shift the production possibilities curve inward?
- Aan increase in the number of hours factories are in use
- Ba decrease in the average number of hours worked per week as the labor force chooses to enjoy more leisure time
- Can increase in the production of capital goods
- Dtechnological progress
16The leader of a federal political party made the following campaign promise: “My administration will increase national defense without requiring sacrifices elsewhere in the economy.” The promise can be kept if:
- AA. the economy moves along the production possibilities in the direction of a greater quantity of defense.
- BB. the economy moves from a point inside the production possibilities curve toward a point on the production possibilities curve.
- CC. the production possibilities frontier shifts outward due to an improvement in technology.
- DD. either b) or c) occurs, but not as a result of a).
17The opportunity cost of an action:
- Acan be determined by considering both the benefits that flow from as well as the monetary costs incurred as a result of the action.
- Bcan be determined by adding up the bills incurred as a result of the action.
- Ccan be objectively determined only by economists.
- Dis a subjective valuation that can be determined only by the individual who chooses the action.
18In deciding how many hours to work, Beulah will make a choice that maximizes her _______; that is, she will choose according to her preferences for leisure time and income.
- Abudget constraint
- Bopportunity set
- Cutility
- Dproduction possibilities frontier
19The model that economists use for illustrating the process of individual choice in a situation of scarcity is the budget constraint, sometimes also called the _______________, a diagram which shows what choices are possible.
- Aopportunity set
- Bconsumption choice
- Ctime value of money
- Drisk premium
20Most real-world choices are not about getting all of one thing or another, instead, most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good.
- Autility
- Bopportunity cost
- Cbenefit analysis
- Dmarginal analysis
Information
- Description
- a
- Author
- Asayena Viengmany
- Language
- English
- Views
- 761
- Tags
- Rating
- No ratings yet Rate this quiz