Econ 102 - Principles of Macroeconomics » Spring 2022 » Exam 1
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Question #1
Centralized decision-making is a key feature in a ________________ economy
A.
command
B.
traditional
C.
market
D.
underground
Question #2
If the price of pancakes increase and the demand for syrup decreases, this is an example of
A.
normal goods
B.
complements
C.
inferior goods
D.
substitutes
Question #3
Which of the following statements is an example of the law of diminishing marginal utility?
A.
The satisfaction derived from consuming one more slice of pizza rises
B.
The satisfaction derived from consuming one more slice of pizza increases
C.
The satisfaction derived from consuming one more slice of pizza is constant
D.
The satisfaction derived from consuming one more slice of pizza declines
Question #4
When the supply of labor increases, what happens to wages and the quantity of labor?
A.
wages rise and the quantity of labor increases
B.
wages fall and the quantity of labor decreases
C.
wages rise and the quantity of labor decreases
D.
wages fall and the quantity of labor increases
Question #5
Which of the following statements is not true about the "Invisible Hand"?
A.
consumers and producers reach an efficient allocation of resources
B.
consumers and producers are not guided by self-interest
C.
Adam Smith advocated for little government intervention
D.
consumers and producers are guided by self-interest
Question #6
If the demand for labor decreases, then wages ______________ and the quantity of labor _____________
A.
fall, increases
B.
rise, increases
C.
fall, decreases
D.
rise, decreases
Question #7
The assembly line is an example of
A.
division of labor
B.
specialization
C.
production possibilities frontier
D.
economies of scale
Question #8
Which factor will cause a shift in the supply curve?
A.
a change in the price of the good
B.
changes in input prices
C.
changes in income
D.
changes in preferences
Question #9
Which of the following statements is true about the Law of Increasing Opportunity Cost?
A.
As production of a good or service decreases, the marginal opportunity cost of producing it decreases
B.
As production of a good or service increases, the marginal opportunity cost of producing it increases
C.
As production of a good or service decreases, the marginal opportunity cost of producing it increases
D.
As production of a good or service increases, the marginal opportunity cost of producing it decreases
Question #10
Unemployment occurs when
A.
the supply of labor exceeds the demand for labor
B.
the supply of labor is less than the demand for labor
C.
the demand for labor is equal to the supply of labor
D.
the demand for labor exceeds the supply of labor
Question #11
Karen has a weekly budget of $80, which she likes to spend on boba and massages. Boba costs $4 and massages cost $40. What is the maximum number of bobas she could buy in a week?
A.
20 bobas
B.
2 bobas
C.
4 bobas
D.
10 bobas
Question #12
Which statement is true about the Law of Demand?
A.
When the price of a good falls, quantity demanded falls
B.
When the price of a good falls, quantity demanded rises
C.
When the price of a good rises, quantity demanded rises
D.
There is a positive relationship between price and quantity demanded
Question #13
"The unemployment rate is under 5%" is an example of a ________________ statement.
A.
negative
B.
normative
C.
positive
D.
efficient
Question #14
When incomes rise and quantity demanded for a good falls, the good is
A.
a complement
B.
normal
C.
inferior
D.
a substitute
Question #15
South Korea and England are examples of a _______________ economy.
A.
underground
B.
command
C.
market
D.
traditional
Question #16
Which of the following is true about a shortage?
A.
supply exceeds demand
B.
There is excess supply
C.
There is excess demand
D.
demand equals supply
Question #17
A point on the production possibilities frontier is
A.
not feasible
B.
feasible, but inefficient
C.
feasible and efficient
D.
not feasible, but efficient
Question #18
In the market for labor, ______________ demand labor.
A.
government
B.
both firms and households
C.
households
D.
firms
Question #19
When the supply curve decreases,
A.
prices rise and quantity decreases
B.
prices fall and quantity increases
C.
prices fall and quantity decreases
D.
prices rise and quantity increases
Question #20
Minimum wage creates a situation where
A.
the supply of labor exceeds the demand for labor
B.
the demand for labor is equal to the supply of labor
C.
the demand for labor exceeds the supply of labor
D.
the supply of labor is less than the demand for labor
Question #21
Which of the following is an example where technology acts as a complement to labor?
A.
online banking reduces the demand for bankers
B.
an increase in demand for solar panels leads to an increase in demand for solar panel installers
C.
self check out stands reduce the need for cashiers
D.
an increase in demand for coffee leads to an increase in demand for coffee baristas
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