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Econ 201 Exam 1 Flashcards | StudBud
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Econ 201 Exam 1
Econ 201 Exam 1
23 terms
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StudBud Administration
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835 plays
Spring 2021
Flashcards
23 cards
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Questions
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Answers
1
Which of the following sources of knowledge is NOT part of the scientific method?
Testimony/Authority
Observation/Perception
Logic/Reasoning
2
What historical event came before the creation of governments, writing, money, and markets?
First Agricultural revolution
Protest Reformation
Socialist Revolutions
Industrial Revolution
3
In the competitive S&D model, what happens to price NOW if buyers and sellers EXPECT the price to go up in the future?
P is indeterminate
P increases
P decreases
4
Which of the following is the expected effect when price of X increases?
Quantity demanded of X increases
Quantity demanded of X decreases
Demand for X decreases
Demand for X increases
5
Richard Thaler & behavioral economists are known for their concept of the _____--the manipulation of people's behavior?
Sludge
Prod
Nudge
Influence
6
Which of the following is NOT a primary characteristic of capitalist economic systems?
Universal healthcare and education
Class of workers who do not own productive property
Freedom of enterprise
Class of productive-property owners
7
Which of the following is a reason why it is difficult to obtain certainty of knowledge in economics?
All three are correct
It is difficult to measure all the variables that economists want to test
It is difficult to control for all the non-tested variables
It is difficult to perform experiments on people's economic behavior
8
Which of the following countries most closely approximates an autocratic communist economic system?
Turkey
North Korea
Norway
Canada
9
According to standard economics, which of the following is NOT among the problems people face when making decisions?
Too many alternatives
Too much information
Unknown preferences
Not enough information
10
According to the Heritage Index of Economic Freedom, which of these 'socialist' countries is ranked higher than the US?
Denmark
Norway
Canada
All of the above
Finland
Sweden
11
The point where quantity supplied equals quantity demanded is known by what term?
Balance
Equilibrium
Equality
Stasis
12
Which branch of philosophy studies questions concerning the nature of knowledge?
Axiology
Soteriology
Ontology
Epistemology
13
Which of the following is NOT a reason the demand curve slopes downward?
Substitution effect
Diminishing utility
Income effect
Increasing unit cost of production
14
Foregoing the next best alternative is known by what term?
Opportunity cost
Replacement cost
Substitution outlay
Lost alternative
15
Where do economists get most of their information to build knowledge of cause-effect in the science of economics?
Theories
Experiments
Surveys
Assumptions
16
Under what condition is the supply curve horizontal?
The business is willing to sell more at higher prices
The business needs the price to go up in order to be willing to sell more
The business has to sell at that price because it is a price taker
The business has pricing power
17
What is the substantivist definition of 'economics'?
Social science studying how humans provide for their survival and thrival
Natural science studying how humans and animals provide for their survival
Social science studying how humans make choices under scarcity
Social science studying how humans demand and supply goods and services
18
In the competitive S&D model, what happens to equilibrium price and quantity when demand decreases and supply increases?
P is indeterminate, Q decreases
P is indeterminate, Q increases
P decreases, Q is indeterminate
P increases, Q is indeterminate
19
Economists collapse all human goals into one goal known by what term?
Pleasure
Utility
Satisfaction
Happiness
20
Which of the following is a primary consideration for businesses with pricing power for changing the price?
Costs of producing their product
Demand for their product
Competitors’ behavior, especially the price of their product
All of the above
21
What do economists theorize about people's tastes and preferences?
Tastes and preferences are largely explained by genes
Tastes and preferences are largely formed by society
All three are correct
Tastes and preferences are unlimited in number (humans are insatiable)
22
In the competitive S&D model, what happens to equilibrium price and quantity when the supply increases?
P decreases, Q increases
P increases, Q increases
P decreases, Q decreases
P increases, Q decreases
23
What modifications did most countries with capitalist economic systems make in the late 19th and early 20th centuries?
Universal education and healthcare provision by the government
Welfare programs providing an income for the poor and unemployed
Laws limiting the working day and improving working conditions
Red and Blue are both correct
