Question 1

The self-interest of the participants in an economy is guided into promoting general economic self-interest by

Accepted Answer

A)   the invisible hand.
B)   market power.
C)   government intervention.
D)   oikonomos.E) All of the above
F) B) and C)

Question 2

The U.S. president who referred to inflation as "public enemy number one" was

Accepted Answer

A)   Richard Nixon.
B)   Gerald Ford.
C)   Jimmy Carter.
D)   Ronald Reagan.E) A) and C)
F) A) and D)

Question 3

Economists use the term to refer to an increase in the overall level of prices in the economy.

Accepted Answer

The answer of Economists use the term to refer to...

Question 4

Use the following Scenario to answer the question scenario 1-6 :
It costs a company $30,000 to produce 600 heart rate monitors. The company's cost will be $30,070 if it produces an additional heart rate monitor. The company is currently producing 600 heart rate monitors.
-Refer to Scenario 1-6. What is the company's marginal cost?

Accepted Answer

The answer of Use the following Scenario to answer the...

Question 5

When the "invisible hand" guides economic activity, prices of products reflect

Accepted Answer

A)   only the values that society places on those products.
B)   only the costs to society of producing those products.
C)   both the values that society places on those products and the costs to society of producing those products.
D)   none of the above; when the "invisible hand" guides economic activity, prices of products are set by the government in a manner that is thought to be "fair."E) None of the above
F) All of the above

Question 6

One advantage market economies have over centrally-planned economies is that market economies

Accepted Answer

A)   provide an equal distribution of goods and services to households.
B)   establish a significant role for government in the allocation of resources.
C)   solve the problem of scarcity.
D)   are more efficient.E) A) and D)
F) B) and C)

Question 7

An example of a firm with market power is a

Accepted Answer

A)   delicatessen in New York.
B)   cable TV provider in Tulsa.
C)   clothing store in Chicago.
D)   family farm in Kansas.E) A) and D)
F) A) and B)

Question 8

For a number of years country A had inflation of 3% but for the last five years has had inflation of 6%. Country B had inflation of 4% for many years, but very recently inflation unexpectedly rose to 9%. Other things the same, in which of the countries would the higher inflation rate be more likely to reduce unemployment?

Accepted Answer

A)   both country A and country B
B)   neither country A nor country B
C)   country A but not country B
D)   country B but not country AE) B) and C)
F) A) and D)

Question 9

Consider Mandy's decision to go to college. If she goes to college, she will spend $20,000 on tuition, $10,000 on room and board, and $2,000 on books. If she does not go to college, she will earn $18,000 working in a store and spend $8,000 on room and board. Mandy's cost of going to college is

Accepted Answer

A)   $32,000.
B)   $42,000.
C)   $50,000.
D)   $58,000.E) C) and D)
F) A) and B)

Question 10

Which of the following is a principle concerning how people interact?

Accepted Answer

A)   Markets are usually a good way to organize economic activity.
B)   Rational people think at the margin.
C)   People respond to incentives.
D)   All of the above are correct.E) B) and D)
F) None of the above

Question 11

The fact that different countries experience different standards of living is largely explained by differences in those countries'

Accepted Answer

A)   populations.
B)   productivity levels.
C)   locations.
D)   None of the above is correct. Economists are puzzled by differences in standards of living around the world.E) B) and C)
F) None of the above

Question 12

Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today?

Accepted Answer

Whatever must be given up to obtain some...

Question 13

With careful planning, we can usually get something that we like without having to give up something else that we like.

Accepted Answer

A) True 
 B)False

Question 14

The "invisible hand" refers to

Accepted Answer

A)   how central planners made economic decisions.
B)   how the decisions of households and firms lead to desirable market outcomes.
C)   the control that large firms have over the economy.
D)   government regulations without which the economy would be less efficient.E) A) and D)
F) A) and B)

Question 15

The income of a typical worker in a country is most closely linked to which of the following?

Accepted Answer

A)   population
B)   productivity
C)   market power
D)   government policiesE) All of the above
F) A) and D)

Question 16

When a single person or small group)  has the ability to influence market prices, there is

Accepted Answer

A)   competition.
B)   market power.
C)   an externality.
D)   a lack of property rights.E) A) and C)
F) All of the above

Question 17

According to Adam Smith, the success of decentralized market economies is primarily due to

Accepted Answer

A)   the basic benevolence of society.
B)   society's legal system.
C)   individuals' pursuit of self-interest.
D)   partnerships that are forged between business and government.E) C) and D)
F) A) and B)

Question 18

Barb's aunt gave her $100 for her birthday with the condition that Barb buy herself something. In deciding how to spend the money, Barb narrows her options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally she decides on Option B. The opportunity cost of this decision is

Accepted Answer

A)   the value to Barb of the option she would have chosen had Option B not been available.
B)   the value to Barb of Options A, C and D combined.
C)   the average of the values to Barb of Options A, C, and D.
D)   $100.E) B) and D)
F) B) and C)

Question 19

Market failure can be caused by

Accepted Answer

A)   low consumer demand.
B)   equilibrium prices.
C)   externalities and market power.
D)   high prices and foreign competition.E) All of the above
F) B) and C)

Question 20

Which of the following is not an example of scarcity?

Accepted Answer

A)   Only some people can afford to buy a BMW automobile.
B)   Every individual in society cannot attain the highest standard of living to which he or she might aspire.
C)   Miranda has an unlimited supply of oranges in her orchard.
D)   Each member of a household cannot get everything he or she wants.E) B) and D)
F) B) and C)

Exam 1: Ten Principles of Economics

The "invisible hand" refers to

Correct Answer
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The U.S. president who referred to inflation as "public enemy number one" was

Correct Answer
verified

When a single person or small group) has the ability to influence market prices, there is

Correct Answer
verified

An example of a firm with market power is a

Correct Answer
verified

The income of a typical worker in a country is most closely linked to which of the following?

Correct Answer
verified

Correct Answer
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Correct Answer
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Economists use the term to refer to an increase in the overall level of prices in the economy.

Correct Answer
verified

The self-interest of the participants in an economy is guided into promoting general economic self-interest by

Correct Answer
verified

One advantage market economies have over centrally-planned economies is that market economies

Correct Answer
verified

Correct Answer
verified

Market failure can be caused by

Correct Answer
verified

The fact that different countries experience different standards of living is largely explained by differences in those countries'

Correct Answer
verified

With careful planning, we can usually get something that we like without having to give up something else that we like.

Correct Answer
verified

When the "invisible hand" guides economic activity, prices of products reflect

Correct Answer
verified

According to Adam Smith, the success of decentralized market economies is primarily due to

Correct Answer
verified

Consider Mandy's decision to go to college. If she goes to college, she will spend $20,000 on tuition, $10,000 on room and board, and $2,000 on books. If she does not go to college, she will earn $18,000 working in a store and spend $8,000 on room and board. Mandy's cost of going to college is

Correct Answer
verified

Which of the following is not an example of scarcity?

Correct Answer
verified

Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today?

Correct Answer
verified
Whatever must be given up to obtain some...
View Answer

Which of the following is a principle concerning how people interact?

Correct Answer
verified

Exam 1: Ten Principles of Economics

The "invisible hand" refers to

Correct AnswerverifiedShow Answer

The U.S. president who referred to inflation as "public enemy number one" was

Correct AnswerverifiedShow Answer

When a single person or small group) has the ability to influence market prices, there is

Correct AnswerverifiedShow Answer

An example of a firm with market power is a

Correct AnswerverifiedShow Answer

The income of a typical worker in a country is most closely linked to which of the following?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economists use the term to refer to an increase in the overall level of prices in the economy.

Correct AnswerverifiedShow Answer

The self-interest of the participants in an economy is guided into promoting general economic self-interest by

Correct AnswerverifiedShow Answer

One advantage market economies have over centrally-planned economies is that market economies

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Market failure can be caused by

Correct AnswerverifiedShow Answer

The fact that different countries experience different standards of living is largely explained by differences in those countries'

Correct AnswerverifiedShow Answer

With careful planning, we can usually get something that we like without having to give up something else that we like.

Correct AnswerverifiedShow Answer

When the "invisible hand" guides economic activity, prices of products reflect

Correct AnswerverifiedShow Answer

According to Adam Smith, the success of decentralized market economies is primarily due to

Correct AnswerverifiedShow Answer

Consider Mandy's decision to go to college. If she goes to college, she will spend $20,000 on tuition, $10,000 on room and board, and $2,000 on books. If she does not go to college, she will earn $18,000 working in a store and spend $8,000 on room and board. Mandy's cost of going to college is

Correct AnswerverifiedShow Answer

Which of the following is not an example of scarcity?

Correct AnswerverifiedShow Answer

Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today?

Correct AnswerverifiedWhatever must be given up to obtain some...View AnswerShow Answer

Which of the following is a principle concerning how people interact?

Correct AnswerverifiedShow Answer

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Whatever must be given up to obtain some...
View Answer

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