The opportunity cost of something is

What you give up to get the item.

Compared with communism, under decentralized socialism, people

Are freer to decide where they will work and for whom they will work

If you are making decisions at the margin, you are

Comparing the extra benefit to the extra cost

If the number of buyers in the market increases, which of the following will happen?

The demand in the market will increase

Expanded everyone’s ability to potentially sell to more people

A production possibilities frontier shows

All possible combinations of two goods an economy can produce

A supply schedule includes

Price and quantity supplied at each price

A vertical supply curve indicates that

A change in price will have no effect on the quantity supplied

The marginal cost of something is

The cost to produce one additional unit

The law of supply says that

The quantity supplied of a good rises when the price of the good rises

Equilibrium price is...

the $ that occurs when the quantity demanded is = to the quantity supplied.

In economics, demand means

Willingness and ability to buy a good

If there were a shortage of nurses, we would expect...

the wages of nurses to increase.

What will happen in the car market if consumers expect higher prices in the near future?

The demand for cars will increase

Work done for a company by people who live in other countries

Slope downward from left to right

decrease the amount of exchange that occurs.

Eminent domain refers to

Right of GOVT taking land w/o consent by compensation to owner 4 the loss

Quantity supplied refers to

The amount supplied at a particular price

Resources are owned and controlled by private individuals in what type of economic system?

A free enterprise or market economic system.

Which of the following is not a result of globalization?

Countries tend to associate politically and economically w/ their own kind

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MIDTERM 2019

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Questions 58

Answers

1
If a greater supply of labor were combined with decreased demand for labor, we might expect...
wages to rise.
wages to remain the same.
None of the above.
wages to fall.
2
The opportunity cost of something is
More costly to the poor
Less than the dollar value of the item
The dollar value of the item.
What you give up to get the item.
3
Compared with communism, under decentralized socialism, people
Are freer to decide where they will work and for whom they will work
Have a mix of free enterprise and socialism
Consider private property to be sacred
Follow strict rules enforced by the government (on all legal activities)
4
With globalization, the world is moving toward
Three powerful economies
One large economy
50 dominant economies
10 major economies
5
If you are making decisions at the margin, you are
Selecting either all or nothing at all
Confused about what to do
Comparing the extra benefit to the extra cost
All of the above
6
If the number of buyers in the market increases, which of the following will happen?
The demand in the market will decrease
The supply in the market will increase
The supply in the market will decrease
The demand in the market will increase
7
Which of the following is not a feature of free enterprise?
Competition
Private property
Voluntary exchange
Public property
8
Higher per-unit production costs would cause producers to
Supply more
Supply less
Want to produce more
Hire more workers
9
A legal maximum price at which a good can be sold is a
price subsidy
price floor
price ceiling
equilibrium price
10
Who determines whether a good is normal or inferior?
Government
All of the above
Sellers
Individuals
11
Globalization has
Raised prices for consumers
Expanded everyone’s ability to potentially sell to more people
Decreased people’s ability to communicate
Reduced the variety of products available in the world
12
A production possibilities frontier shows
All the possible production of one particular good
All the possible combinations of four goods an economy can produce
All possible combinations of all the goods that an economy can produce
All possible combinations of two goods an economy can produce
13
The responsibilities of people in a free enterprise economy include
Being truthful
All of the above
Open disclosure
Obeying the law
14
The prices consumers pay are determined by
Chance
Producers
Advertising
Markets
15
A supply schedule includes
The producer’s cost
Shifts to the left or right of the supply curve
Price and quantity supplied at each price
a. Both a and b
16
Which of the following is a public good?
Car
Hamburger
Beauty shop
Post office
17
Although there are no guarantees in a free enterprise system, it offers
Freedom
Government backing
Success
High incomes
18
A vertical supply curve indicates that
There is a direct relationship between price and quantity supplied
A price change will have a significant impact on the quantity supplied
A change in price will have no effect on the quantity supplied
Producers will increase their production
19
The marginal cost of something is
The cost to produce one additional unit
An intangible resource
Never greater than the marginal benefit.
The opportunity cost minus the actual cost
20
If demand for a good is elastic and its price decrease, total revenue
Goes down
Goes up
Cannot be predicted
Remains the same
21
Equilibrium can be expressed as...
Qd = Qs
Qd > QS
Qd < Qs
QS < Qd
22
The law of supply says that
Sellers prefer low prices to high prices
A seller must have both the willingness and ability to produce a good
The quantity supplied of a good decreases when the price of the good rises
The quantity supplied of a good rises when the price of the good rises
23
Equilibrium price is...
any price that sellers decide to set.
any price that doesn't cause a shortage.
any price that doesn't cause a surplus.
the $ that occurs when the quantity demanded is = to the quantity supplied.
24
Entrepreneurs are motivated by
A desire to be famous
Potential profit
Goodwill
Humanitarian reasons
25
How a society answers the three economic questions defines
Its economic system
Whether it is pure or mixed economy
Its place in the global economy
Its income distribution
26
A person who receives the benefits of a good without paying for it is called a
Free rider
Bum
Freeloader
Park
27
In economics, demand means
Willingness and desire to buy a good
Ability to buy a good
Willingness to buy a good
Willingness and ability to buy a good
28
If there were a shortage of nurses, we would expect...
the wages of nurses to decrease.
None of the above.
a decreased demand of nurses.
the wages of nurses to increase.
29
If all else remains the same, a decrease in the demand for a good...
will decrease the price.
will cause a shortage.
will increase sales.
will increase the price.
30
In a free enterprise market, who or what allocates resources?
the government
consumers
producers
prices
31
What will happen in the car market if consumers expect higher prices in the near future?
The demand for cars will increase
The supply of cars will drop
The demand for cars will not change
The demand for cars will decrease
32
Offshoring refers to
Work done by dock workers
Work done by foreigners in their country
Work done for a company by people other than the company’s employees
Work done for a company by people who live in other countries
33
Economists believe that people respond to
Requests from policy makers
Speeches from politicians
Monetary incentives
The wishes of the government
34
National defense is an example of a
Positive externality
Negative externality
Public good
Private good
35
Which if the following could increase demand for a good?
All of the above
Higher prices in the future
Increased immigration
Higher birthrate
36
Which of the following is a private good?
Bicycle
School
Court
Park
37
Rationing exists because of
Price
Scarcity
Incentives
a surplus of products.
38
As the opportunity cost of college increases compared to the benefits, a person is
Cannot predict
Unaffected by the change
More likely to attend college
Less likely to attend college
39
Demand curves
Slope downward from right to left
Slope upward from left to right
Show a positive relationship
Slope downward from left to right
40
Which of the following can cause a supply curve to shift?
Weather
Future price expectations
All of the above
Number of sellers
41
A shift of the demand curve represents
A change in the quantity demanded
A change in demand
A movement on the demand curve
All of the above
42
If sellers do not respond to a change in price, supply is
Elastic
Inelastic
None of the above
Unit-elastic
43
Price controls...
increase the opportunities people have to make themselves better off.
don't really have an impact on exchange.
decrease the amount of exchange that occurs.
increase the amount of exchange that occurs.
44
Eminent domain refers to
The right to own your own home and keep others from entering it
Right of GOVT taking land w/o consent by compensation to owner 4 the loss
The right of company to take ownership of private land without the consent
Gov't having the right to permit/prohibit building in city limits
45
Quantity supplied refers to
A shift of the supply curve to the right
The amount supplied at a particular price
The amount demanded at a particular price
A shift of the supply curve to the left
46
Labor refers to
Foreign workers
Goods that can be used as resources for production
Physical and mental talents
Physical talents.
47
Resources are owned and controlled by private individuals in what type of economic system?
A communist economic system
All of the above
A socialist economic system
A free enterprise or market economic system.
48
If your parents offer you cash for every “A” on your report card, that is an example of
A trade-off
A bribe
Marginal cost
An incentive
49
Things that can't be felt or touched are
renewable
Intangible
real
tangible
50
Things that can be felt or touched are
Tangible
Intangible
Renewable
Real
51
Which of the following is not a result of globalization?
Individuals and business in any part of the world are affected by
The world had become “smaller.”
Countries tend to associate politically and economically w/ their own kind
Countries that never before communicated have become major trading partners
52
A price floor results in...
a shortage
a surplus
equilibrium
a shift of the curve.
53
The question of what goods will be produced must be answered because
Command economies need to write a plan
Scarcity exists
Consumers would like to have these goods
Some countries are poor and must choose what to produce
54
Inventory includes which of the following?
stock on hand
supply and demand
total sales
quantity sold multiplied by price
55
There is a strong relationship between life expectancy and
Globalization
Climate
Government control
Outsourcing
56
When quantity supplied changes by the same percentage as price, it is
Unit-elastic
A subsidized good
Inelastic
Elastic
57
A market is any place
Where only sellers offer goods for sale
Where fruits and vegetables are sold
With a sign designating a store
Where buyers and sellers meet
58
Income distribution refers to
The way all of a country’s income is divided among groups of earners
Earnings of corporations
Welfare payments to the poor.
Average income per person

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