Question 1

Government policies designed to equalize the distribution of economic well-being include (i) 
The welfare system
(ii) 
Unemployment insurance
(iii) 
Progressive income tax

Accepted Answer

A)   (i) only
B)   (ii) only
C)   (i) and (ii) only
D)   (i) , (ii) ,and (iii) E) A) and B)
F) B) and C)

Question 2

Scenario 1-3
It costs a company $35,000 to produce 700 graphing calculators.The company's cost will be $35,070 if it produces an additional graphing calculator.The company is currently producing 700 graphing calculators.
-Refer to Scenario 1-3.What is the company's marginal cost?

Accepted Answer

The answer of Scenario 1-3
It costs a company $35,000 to...

Question 3

To say people respond to incentives means that people may alter their decisions when the costs and benefits of an action change.

Accepted Answer

A) True 
 B)False

Question 4

Scenario 1-3
It costs a company $35,000 to produce 700 graphing calculators.The company's cost will be $35,070 if it produces an additional graphing calculator.The company is currently producing 700 graphing calculators.
-Refer to Scenario 1-3.A customer is willing to pay $60 for the 701th calculator.Should the company produce and sell it? Explain.

Accepted Answer

No,because the margi...

Question 5

The property of society getting the most it can from its scarce resources is called

Accepted Answer

A)   equity.
B)   efficiency.
C)   equality.
D)   efficacy.E) None of the above
F) A) and C)

Question 6

The business cycle is measured by the

Accepted Answer

A)   production of goods and services.
B)   number of people employed.
C)   the interest rate.
D)   Both a and b are correct.E) B) and C)
F) A) and D)

Question 7

A rational decisionmaker takes an action if and only if

Accepted Answer

A)   the marginal benefit of the action exceeds the marginal cost of the action.
B)   the marginal cost of the action exceeds the marginal benefit of the action.
C)   the marginal cost of the action is zero.
D)   the opportunity cost of the action is zero.E) A) and B)
F) None of the above

Question 8

When the government prevents prices from adjusting naturally to supply and demand,

Accepted Answer

A)   it equates the amount buyers want to buy with the amount sellers want to sell.
B)   it adversely affects the allocation of resources.
C)   it improves equality and efficiency.
D)   it improves efficiency but reduces equality.E) B) and D)
F) A) and D)

Question 9

Which of the following is not generally regarded by economists as a legitimate reason for the government to intervene in a market?

Accepted Answer

A)   to promote efficiency
B)   to promote equality
C)   to enforce property rights
D)   to protect an industry from foreign competitionE) B) and D)
F) C) and D)

Question 10

Which of the following claims is consistent with the views of mainstream economists?

Accepted Answer

A)   If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will temporarily fall.
B)   If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will temporarily rise.
C)   If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will permanently fall.
D)   If we increase the rate of inflation from 3 percent to 6 percent,then the rate of unemployment will permanently rise.E) A) and C)
F) None of the above

Question 11

A marginal change is a small incremental adjustment to an existing plan of action.

Accepted Answer

A) True 
 B)False

Question 12

The term "market failure"

Accepted Answer

A)   means the same thing as "market power."
B)   refers to the dissolution of a market when firms decide to quit producing a certain product.
C)   refers to the failure of a market to produce an efficient allocation of resources.
D)   refers to government's failure to enforce the property rights of households or firms that participate in a certain market.E) B) and C)
F) All of the above

Question 13

In most societies,resources are allocated by

Accepted Answer

A)   a single central planner.
B)   a small number of central planners.
C)   those firms that use resources to provide goods and services.
D)   the combined actions of millions of households and firms.E) A) and B)
F) B) and C)

Question 14

The term "productivity"

Accepted Answer

A)   means the same thing as "efficiency."
B)   is seldom used by economists,as its meaning is not precise.
C)   refers to the quantity of goods and services produced from each unit of labor input.
D)   refers to the variety of goods and services from which households can choose when they shop.E) C) and D)
F) A) and C)

Question 15

Almost all variation in living standards is attributable to differences in countries'

Accepted Answer

A)   population growth rates.
B)   productivity.
C)   systems of public education.
D)   taxes.E) B) and C)
F) C) and D)

Question 16

Central planning refers to

Accepted Answer

A)   markets guiding economic activity.Today many countries that had this system have abandoned it.
B)   markets guiding economic activity.Today many countries that did not have this system have implemented it.
C)   government guiding economic activity.Today many countries that had this system have abandoned it.
D)   government guiding economic activity.Today many countries that did not have this system have implemented it.E) B) and D)
F) A) and D)

Question 17

Productivity is defined as the

Accepted Answer

A)   amount of goods and services produced from each unit of labor input.
B)   number of workers required to produce a given amount of goods and services.
C)   amount of labor that can be saved by replacing workers with machines.
D)   actual amount of effort workers put into an hour of working time.E) None of the above
F) B) and C)

Question 18

One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources.

Accepted Answer

A) True 
 B)False

Question 19

When a government program is justified not on its merits but on the number of jobs it will create,

Accepted Answer

A)   the program is an efficient use of taxpayer dollars.
B)   it should be approved only if the unemployment rate is low.
C)   taxes should be raised to fund the program.
D)   it is known as the "broken window fallacy."E) All of the above
F) A) and D)

Question 20

The terms equality and efficiency are similar in that they both refer to benefits to society.However they are different in that

Accepted Answer

A)   equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.
B)   equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.
C)   equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.
D)   equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.E) All of the above
F) A) and C)

Exam 1: Ten Principles of Economics

Correct Answer
verified
No,because the margi...
View Answer

In most societies,resources are allocated by

Correct Answer
verified

Which of the following is not generally regarded by economists as a legitimate reason for the government to intervene in a market?

Correct Answer
verified

The term "productivity"

Correct Answer
verified

Government policies designed to equalize the distribution of economic well-being include (i) The welfare system (ii) Unemployment insurance (iii) Progressive income tax

Correct Answer
verified

When a government program is justified not on its merits but on the number of jobs it will create,

Correct Answer
verified

Productivity is defined as the

Correct Answer
verified

To say people respond to incentives means that people may alter their decisions when the costs and benefits of an action change.

Correct Answer
verified

Almost all variation in living standards is attributable to differences in countries'

Correct Answer
verified

A rational decisionmaker takes an action if and only if

Correct Answer
verified

The term "market failure"

Correct Answer
verified

When the government prevents prices from adjusting naturally to supply and demand,

Correct Answer
verified

The property of society getting the most it can from its scarce resources is called

Correct Answer
verified

One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources.

Correct Answer
verified

A marginal change is a small incremental adjustment to an existing plan of action.

Correct Answer
verified

The terms equality and efficiency are similar in that they both refer to benefits to society.However they are different in that

Correct Answer
verified

Which of the following claims is consistent with the views of mainstream economists?

Correct Answer
verified

Central planning refers to

Correct Answer
verified

The business cycle is measured by the

Correct Answer
verified

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators.The company's cost will be $35,070 if it produces an additional graphing calculator.The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3.What is the company's marginal cost?

Correct Answer
verified

Exam 1: Ten Principles of Economics

Correct AnswerverifiedNo,because the margi...View AnswerShow Answer

In most societies,resources are allocated by

Correct AnswerverifiedShow Answer

Which of the following is not generally regarded by economists as a legitimate reason for the government to intervene in a market?

Correct AnswerverifiedShow Answer

The term "productivity"

Correct AnswerverifiedShow Answer

Government policies designed to equalize the distribution of economic well-being include (i) The welfare system (ii) Unemployment insurance (iii) Progressive income tax

Correct AnswerverifiedShow Answer

When a government program is justified not on its merits but on the number of jobs it will create,

Correct AnswerverifiedShow Answer

Productivity is defined as the

Correct AnswerverifiedShow Answer

To say people respond to incentives means that people may alter their decisions when the costs and benefits of an action change.

Correct AnswerverifiedShow Answer

Almost all variation in living standards is attributable to differences in countries'

Correct AnswerverifiedShow Answer

A rational decisionmaker takes an action if and only if

Correct AnswerverifiedShow Answer

The term "market failure"

Correct AnswerverifiedShow Answer

When the government prevents prices from adjusting naturally to supply and demand,

Correct AnswerverifiedShow Answer

The property of society getting the most it can from its scarce resources is called

Correct AnswerverifiedShow Answer

One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources.

Correct AnswerverifiedShow Answer

A marginal change is a small incremental adjustment to an existing plan of action.

Correct AnswerverifiedShow Answer

The terms equality and efficiency are similar in that they both refer to benefits to society.However they are different in that

Correct AnswerverifiedShow Answer

Which of the following claims is consistent with the views of mainstream economists?

Correct AnswerverifiedShow Answer

Central planning refers to

Correct AnswerverifiedShow Answer

The business cycle is measured by the

Correct AnswerverifiedShow Answer

Scenario 1-3 It costs a company $35,000 to produce 700 graphing calculators.The company's cost will be $35,070 if it produces an additional graphing calculator.The company is currently producing 700 graphing calculators. -Refer to Scenario 1-3.What is the company's marginal cost?

Correct AnswerverifiedShow Answer

Correct Answer
verified
No,because the margi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified