Foundations of Economics

Question 1

Florida can produce more pineapples, Ohio can produce more cupcakes what is this an example of?

Accepted Answer

Comparative advantage

Question 2

Government policy has no negative externalities on the economy?

Accepted Answer

False

Question 3

Which of the following determines if a supplier will make one of a product?

Accepted Answer

Marginal benefit exceeds marginal cost

Question 4

Supply and demand resulted in which of the following in US History

Accepted Answer

Longhorn steer being shipped to the East post the Civil War

Question 5

Keynes = government spending = economic boom. ____ = individual investment = economic boom

Accepted Answer

Hayek

Question 6

People determine their choices based off of the _________ that is provided to them?

Accepted Answer

Utility

Question 7

Farmers' Market is an example of which of the following?

Accepted Answer

Pure competition

Question 8

A negative externality of central planning is which of the following?

Accepted Answer

Stagflation

Question 9

Product X has a substitute that has a price decrease, what will be the result for product X?

Accepted Answer

Demand curve for X shifts to the left

Question 10

Who's plan was followed when Roosevelt created the New Deal?

Accepted Answer

John Maynard Keynes’

Question 11

Match Adam Smith to correct subject matter

Accepted Answer

Modern Economics

Question 12

Gov’s manipulation of the economy to cause expansion or contraction is based off what 2 things

Accepted Answer

Taxes and government spending

Question 13

This will not cause the demand curve for product K to change?

Accepted Answer

price change to K

Question 14

Pair David Ricardo with the best match

Accepted Answer

Trade

Question 15

Which is an example of Oligopoly

Accepted Answer

Pepsi and coke

Question 16

Refusing a benefit of the next best option

Accepted Answer

Opportunity Cost

Question 17

The law of diminishing returns is a result of which of the following?

Accepted Answer

Costs exceed returns

Question 18

A negative externality of printing money is which of the following?

Accepted Answer

Hyperinflation

Question 19

Same market, many differentiated products that are similar is an example of which?

Accepted Answer

Monopolistic competition

Question 20

Which of the following are the most important to supply and demand model?

Accepted Answer

Prices

Question 21

Which of the following represents a monopoly?

Accepted Answer

One company controlling the market

Question 22

Sin tax will cause what to the supply or demand curves?

Accepted Answer

the supply curve shifts to the left.

Question 23

Most celebrated and most common way that humans deal with scarcity is with which

Accepted Answer

Markets

Question 24

Economics was a created subject because which of the following?

Accepted Answer

Scarcity

Question 25

Match Karl Marx to the following economic principle he founded

Accepted Answer

Communism

Question 26

The Demand Curve is downward-sloping because

Accepted Answer

As prices decrease consumers are willing to buy more

Question 27

Supply Curve is upward-sloping because

Accepted Answer

Increased prices motivate suppliers to produce more

Foundations of Economics

Questions 27

Foundations of Economics

Questions 27