Econ 001 - Principles of Microeconomics » Summer 2019 » Quiz 1

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Question #1
The nature of the relationships between variables can be expressed by way of,,
A.   analyzing the data.
B.   mathematical equations.
C.   graphs.
Question #2
The circular flow diagram demonstrates
A.   a trade-off that scarcity imposes.
B.   a direct relationship between groups in an economy.
C.   mathematical equations.
Question #3
If a graph data line indicates that there is a zero slope, this means there
A.   are two variables that are negatively related.
B.   is no relationship between x and y.
C.   is a constant relationship between x and y.
Question #4
If a data line on a graph has a slope of zero it means there
A.   is a constant relationship between x and y.
B.   is no relationship between x and y.
C.   are two variables that are negatively related.
Question #5
Lynne sat down to calculate the economic equation, y=12+7x18, for her economics course. What should she remember to do in order to find Y?
A.   Start with the first variable of the equation.
B.   Multiple and divide from right to left.
C.   Follow the correct order of operations.
Question #6
Given that spending for a certain household will always include a base amount of $1000/month, and that additional spending is equal to half of any income earned, we can predict household spending with a model y=b+mx, where
A.   x represents spending.
B.   y represents spending.
C.   b represents spending.
Question #7
The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it is
A.   profitable.
B.   expensive.
C.   productive.
Question #8
Financial capital, like money, is simply a tool. Once financial capital is converted to economic capital (invested), it produces a resource that is
A.   productive.
B.   profitable.
C.   expensive.
Question #9
Land, or natural resources, include(s) the fertility of the land, minerals below it, and________?
A.   human capital resources
B.   wind and sun
C.   human resources
Question #10
Society gains advantages through trade because of its ability to,,
A.   refine tasks associated with production.
B.   attain absolute advantage in our trade with other nations.
C.   specialize resources to the uses where opportunity cost is minimized.
Question #11
Natural resources, or land, can include the fertility of the land, minerals below it, and what other aspects?
A.   human capital resources
B.   livestock
C.   human resources
Question #12
The advantages that society gains through trade lie in the ability to,,
A.   attain absolute advantage in our trade with other nations.
B.   specialize resources to the uses where opportunity cost is minimized.
C.   refine tasks associated with production.
Question #13
Due to limits on our time, money, and effort, we are best off when we allocate those things...
A.   according to what society as a whole would want.
B.   by constantly assessing the opportunity costs of our choices.
C.   with the objective of maximizing profit.
Question #14
Identify the macroeconomic issue among the following statements.
A.   The electric bill is higher this month.
B.   Our family business costs will rise due to higher electric rates.
C.   The average cost of producing electricity nationally is rising.
Question #15
The agricultural extension agent told the farmer that one more crop-dusting will likely add a ton of additional wheat to the harvest. The rational farmer then calculated the selling price of a ton of wheat, since he would decide to crop-dust again if and only if
A.   the additional crops grown from one more crop-dusting (the marginal product) is rising.
B.   the marginal benefit is greater than the marginal cost of an additional crop-dusting.
C.   the total benefits from all crop-dustings is greater than the the total cost of all crop-dustings.
Question #16
Identify the normative statement(s) among the following statement(s).,,
A.   College tuition is higher for out-of-state students than it is for in-state students.
B.   College tuition is not high enough.
C.   College tuition is too high.
Question #17
Normative statements are based upon
A.   value judgements.
B.   conjecture.
C.   facts.
Question #18
Rational decision-making considers all of the following except
A.   sunk costs.
B.   opportunity costs.
C.   monetary costs.
Question #19
Making an economically rational decision requires
A.   always considering the long-run.
B.   considering all prospective marginal benefits and marginal costs to oneself.
C.   equal consideration for your own and others’ welfare
Question #20
The house that Jeanne inherited from her mother can rent for $2000/month, but Jeanne decides to allow her brother to stay there for only half of that. This decision carried with it a
A.   $1000 per month monetary and $1000 per month opportunity cost.
B.   zero monetary cost but a $1000 per month opportunity cost.
C.   $1000 per month monetary cost but a $2000 per month opportunity cost.

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