Question 1

Oil is considered to be a non-renewable energy source.Oil

Accepted Answer

A)  is an unlimited resource.
B)  is a scarce resource.
C)  is not a productive resource.
D)  has no opportunity cost.E) B) and C)
F) A) and B)

Question 2

If the price of a dozen eggs were fixed above the current price,then we would expect

Accepted Answer

A)  an increase in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell.
B)  an increase in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell.
C)  a decrease in the number of eggs people want to buy and an increase in the number of eggs farmers want to sell.
D)  a decrease in the number of eggs people want to buy and a decrease in the number of eggs farmers want to sell.E) A) and B)
F) A) and C)

Question 3

Suppose that the average income of a Costa Rican is higher than the average income of a Guatemalan.You might conclude that

Accepted Answer

A)  Costa Rican firms are faced with stricter government regulations than Guatemalan firms.
B)  total income is divided among fewer workers in Costa Rica since it has a smaller labor force than Guatemala.
C)  Guatemala's climate allows for longer growing seasons and therefore Guatemala can produce large quantities of grain and other crops.
D)  productivity in Costa Rica is higher than in Guatemala.E) None of the above
F) A) and C)

Question 4

The "broken window fallacy"

Accepted Answer

A)  explains why inflation is so high.
B)  is a justification for the government to print more money.
C)  is illustrated when a government program is justified not on its merits but on the number of jobs it will create.
D)  has nothing to do with public policy.E) C) and D)
F) B) and D)

Question 5

Economics is the study of how evenly goods and services are distributed within society.

Accepted Answer

A) True 
 B)False

Question 6

A rational decisionmaker

Accepted Answer

A)  ignores marginal changes and focuses instead on "the big picture."
B)  ignores the likely effects of government policies when he or she makes choices.
C)  takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.
D)  takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions.E) A) and D)
F) B) and C)

Question 7

In a particular country in 1998,the average worker needed to work 25 hours to produce 40 units of output.In that same country in 2008,the average worker needed to work 40 hours to produce 68 units of output.In that country,the productivity of the average worker

Accepted Answer

A)  decreased by 1.7 percent between 1998 and 2008.
B)  remained unchanged between 1998 and 2008.
C)  increased by 4.75 percent between 1998 and 2008.
D)  increased by 6.25 percent between 1998 and 2008.E) A) and B)
F) None of the above

Question 8

The overriding reason why households and societies face many decisions is that

Accepted Answer

A)  resources are scarce.
B)  goods and services are not scarce.
C)  incomes fluctuate with business cycles.
D)  people,by nature,tend to disagree.E) A) and D)
F) A) and B)

Question 9

Under what conditions might government intervention in a market economy improve the economy's performance?

Accepted Answer

If there is a market failure,such as an ...

Exam 1: Ten Principles of Economics

Under what conditions might government intervention in a market economy improve the economy's performance?

Correct Answer
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If there is a market failure,such as an ...
View Answer

Suppose that the average income of a Costa Rican is higher than the average income of a Guatemalan.You might conclude that

Correct Answer
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Oil is considered to be a non-renewable energy source.Oil

Correct Answer
verified

The overriding reason why households and societies face many decisions is that

Correct Answer
verified

If the price of a dozen eggs were fixed above the current price,then we would expect

Correct Answer
verified

The "broken window fallacy"

Correct Answer
verified

A rational decisionmaker

Correct Answer
verified

In a particular country in 1998,the average worker needed to work 25 hours to produce 40 units of output.In that same country in 2008,the average worker needed to work 40 hours to produce 68 units of output.In that country,the productivity of the average worker

Correct Answer
verified

Economics is the study of how evenly goods and services are distributed within society.

Correct Answer
verified

Exam 1: Ten Principles of Economics

Under what conditions might government intervention in a market economy improve the economy's performance?

Correct AnswerverifiedIf there is a market failure,such as an ...View AnswerShow Answer

Suppose that the average income of a Costa Rican is higher than the average income of a Guatemalan.You might conclude that

Correct AnswerverifiedShow Answer

Oil is considered to be a non-renewable energy source.Oil

Correct AnswerverifiedShow Answer

The overriding reason why households and societies face many decisions is that

Correct AnswerverifiedShow Answer

If the price of a dozen eggs were fixed above the current price,then we would expect

Correct AnswerverifiedShow Answer

The "broken window fallacy"

Correct AnswerverifiedShow Answer

A rational decisionmaker

Correct AnswerverifiedShow Answer

In a particular country in 1998,the average worker needed to work 25 hours to produce 40 units of output.In that same country in 2008,the average worker needed to work 40 hours to produce 68 units of output.In that country,the productivity of the average worker

Correct AnswerverifiedShow Answer

Economics is the study of how evenly goods and services are distributed within society.

Correct AnswerverifiedShow Answer

Correct Answer
verified
If there is a market failure,such as an ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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