Econ 101 » Spring 2020 » Econ Timed Quiz 1
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Question #1
Natural resources, or land, can include the fertility of the land, minerals below it, and what other aspects?
A.
human resources
B.
livestock
C.
human capital resources
Question #2
When certain assumptions are used to create a model of reality, its value can be tested and determined by
A.
graphing equations.
B.
predicting outcomes.
C.
producing data.
Question #3
The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it is
A.
expensive.
B.
profitable.
C.
productive.
Question #4
The ability of a model to predict outcomes (accurately) is an indicator that
A.
the assumptions of the model are generally accurate.
B.
the model is valuable.
C.
the theory behind the model needs to be refined.
Question #5
Financial capital, like money, is simply a tool. Once financial capital is converted to economic capital (invested), it produces a resource that is
A.
expensive.
B.
profitable.
C.
productive.
Question #6
In the case of an inverse relationship between two variables, all else remaining constant
A.
graphically, the data line representing the relationship between the variables has a positive slope.
B.
the value of the two variables will move in opposite directions from each other.
C.
the values of the two variables will move in the same direction.
Question #7
In economics, functions often describe cause and effect. In an economic function, the variable being described on the left-hand side represents a(n) ________?
A.
effect
B.
result
C.
cause
Question #8
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.
are two variables that are negatively related.
C.
is no relationship between x and y.
Question #9
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 #10
From the graph above, one could conclude that, all else remaining constant
A.
there is a trade-off between X and Y.
B.
the relationship between X and Y is indirect.
C.
the relationship between X and Y is direct.
Question #11
Normative statements are based upon
A.
value judgements.
B.
conjecture.
C.
facts.
Question #12
A budget constraint model differs from production possibilities model in that, typically
A.
the budget constraint demonstrates diminishing returns.
B.
the production possibilities model demonstrates diminishing returns.
C.
the budget constraint depicts an inverse relationship, or a trade-off.
Question #13
The production possibilities model is illustrated with a negatively sloped line because
A.
the opportunity cost of producing more of something will rise.
B.
of diminishing returns.
C.
production of different types will compete for limited resources.
Question #14
Rational decision-making considers all of the following except
A.
opportunity costs.
B.
monetary costs.
C.
sunk costs.
Question #15
Marginal cost is necessary to consider in a rational decision, and should be compared to
A.
total benefit.
B.
opportunity cost.
C.
marginal benefit.
Question #16
Self-interest is not necessarily selfish, some say. In fact, self-interest likely includes an individual’s consideration for
A.
close friends and family.
B.
strangers.
C.
humankind as a whole.
Question #17
A non-linear (“bending”) production possibilities model assumes that
A.
the opportunity cost of producing more of something will remain constant.
B.
some land or labor is more productive in one use than another.
C.
technology can advance.
Question #18
Down at the water plant, there is a proposal for a new filtration system to serve the entire city’s needs. The cost of the new system will double water rates. A rational city council should deliberate which following question on behalf of the city’s residents?
A.
Are the total benefits of having a city water supply greater than the total cost?
B.
Are the benefits of cleaner water greater than the additional costs of the new filtration system?
C.
Is it worth paying twice as much for the same amount of water?
Question #19
A rock star intentionally sets her ticket prices below what would be necessary to sell out her shows. How might this be justified by a manager whose goal is to maximize long-term profit?
A.
The revenue sacrificed is worth the boost it gives to her image as lines form for tickets.
B.
The revenue sacrificed will help to make the audience more diverse.
C.
The revenue sacrificed represents a very small share of the show’s revenues.
Question #20
Scarcity is imposed on individual households in the form of,,
A.
the prices of the goods that we may purchase.
B.
income (budget) limitations.
C.
utility.
Question #21
Good weather and heavy winter rain increases the supply of agricultural products. This means that at any given price, a higher quantity will be supplied. Conversely, a drought would shift the
A.
supply curve to the right.
B.
supply curve to the left.
C.
Good weather and heavy winter rain increases the supply of agricultural products. This means that at any given price, a higher quantity will be supplied. Conversely, a drought would shift the
Question #22
Economists refer to the relationship that a higher price leads to a higher quantity supplied as the
A.
market equilibrium.
B.
law of supply
C.
price and supply model.
Question #23
Market economies are based on private enterprise, which means
A.
economic decision-making happens through markets.
B.
there is no private property.
C.
private companies control the government.
Question #24
Which of the following will shift the supply curve to the right?
A.
A decrease in the price of inputs to production.
B.
A change in consumer tastes and preferences.
C.
Government regulation of production.
Question #25
If price was $2.00 per gallon and decreased to $1.40 per gallon, how does quantity demanded of gasoline change?
A.
460 million gallons to 700 millions gallons
B.
460 million gallons to 600 million gallons
C.
600 million gallons to 460 million gallons
Question #26
According to the law of demand, assuming other factors are held constant
A.
As the price of milk decreases, the quantity of milk demanded will increase.
B.
As the demand for milk increases, the price of milk will also increase.
C.
As the price of milk increases, the quantity of milk demanded will increase.
Question #27
If price was $1.40 per gallon and increased to $2.00 per gallon, how does quantity demanded of gasoline change?
A.
460 million gallons to 700 millions gallons
B.
600 million gallons to 460 million gallons
C.
460 million gallons to 600 million gallons
Question #28
A drought decreases the supply of agricultural products. This means that at any given price, a lower quantity will be supplied. Conversely, especially good weather would shift the
A.
demand curve to the right.
B.
supply curve to the left.
C.
supply curve to the right.
Question #29
The one unique point in which quantity demanded equals quantity supplied is called
A.
equilibrium.
B.
market stability.
C.
supply schedule.
Question #30
If a decrease in the price of MP3 players decreases the demand for CD players, this means that
A.
MP3 players and CD players are substitutes.
B.
MP3 players and CD players are normal goods.
C.
MP3 players and CD players are inferior goods.
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