Question 1

You have paid all expenses to travel to your favorite beach for a vacation. You made these payments early in order to receive a discount and all payments are nonrefundable. Unfortunately, a hurricane is likely to crash into the coast during your vacation dates. What should not be considered as you make a decision to take your trip or not?

Accepted Answer

A)   The money that has already been spent on the trip
B)   The satisfaction you are likely to receive at the beach during a hurricane
C)   The best alternative use of your time if you do not take the trip
D)   The additional costs you didn't anticipate while on the trip.E) None of the above
F) All of the above

Question 2

"More people purchase chap stick when the weather man announces that we are in for a very windy week." This statement implies that:

Accepted Answer

A)   buying Chap Stick causes it to be windy.
B)   people plan on kissing more on windy days.
C)   buying Chap Stick is positively correlated with the announcement of a windy week.
D)   the weather man is getting a kickback from the makers of Chap Stick.E) A) and B)
F) B) and C)

Question 3

"Late registration will result in an additional $30 fee." This is an example of:

Accepted Answer

A)   trade-off.
B)   a disincentive.
C)   marginal cost.
D)   group responsibility.E) B) and C)
F) A) and B)

Question 4

Which of the following could be an example of a question that would be studied in microeconomics?

Accepted Answer

A)   Why did our economic growth rate slow down during the 2000s?
B)   How did the recession end in 2009 if unemployment continued to rise?
C)   How will the legalization of marijuana in Colorado affect the market for cigarettes?
D)   When should Congress raise taxes in order to tackle the debt crisis?E) A) and C)
F) A) and D)

Question 5

In the early 1990s, before pay at the pump was an option, a gas station decides to force people to pre-pay due to drive-offs. The opportunity cost of this decision may include:

Accepted Answer

A)   the value of the gas that is no longer stolen by people who drove off.
B)   not having to look outside for people waving at you to turn on the pump.
C)   lost revenue when people under estimate what they think their gas tanks will hold in order to avoid going back into the store to get change from overpayment.
D)   a loss of snack sales because people decide to come into the store to pay for gas before pumping versus after pumping their gas.E) B) and D)
F) All of the above

Question 6

Which broad field of economics would most likely study how consumers respond to a hike in cigarette taxes?

Accepted Answer

A)   Microeconomics
B)   Marginal economics
C)   Macroeconomics
D)   Monetary economicsE) All of the above
F) A) and B)

Question 7

Scarcity is:

Accepted Answer

A)   a fact of life because of limited resources.
B)   not a problem for Bill Gates because he is a billionaire.
C)   can be eliminated by rational decision making.
D)   is a problem studied in microeconomics but is not a macroeconomic concern.E) All of the above
F) A) and D)

Question 8

When we assume that consumers want to pay the lowest price possible, we assume that consumers are:

Accepted Answer

A)   cheap.
B)   deceitful.
C)   rational.
D)   informed.E) C) and D)
F) B) and D)

Question 9

As monthly rain levels rise, golf course revenue falls because casual golfers prefer to stay dry. This is an example of:

Accepted Answer

A)   scarcity.
B)   incentives.
C)   normative analysis.
D)   correlation and causation.E) None of the above
F) A) and C)

Question 10

The broad field of _____________ would most likely study how all consumers respond to a hike in cigarette taxes.

Accepted Answer

A)   microeconomics
B)   development economics
C)   macroeconomics
D)   labor economicsE) A) and B)
F) None of the above

Question 11

Having a goal that does not include making a profit can often explain why the unprofitable idea has not been implemented. These types of ideas may include:

Accepted Answer

A)   helping the poor.
B)   making great art.
C)   promoting social justice.
D)   All of these.E) A) and B)
F) B) and D)

Question 12

Which of the following is considered a microeconomic issue?

Accepted Answer

A)   The unemployment rate in the US from 1980-2014.
B)   Apple releases a new version of the iPhone.
C)   France's growth rate in the last year.
D)   All of these are examples of microeconomic issues.E) A) and B)
F) B) and C)

Question 13

A positive statement:

Accepted Answer

A)   can actually be false.
B)   must always be true.
C)   provides an opinion with a positive outlook.
D)   is the same as a normative statement.E) B) and D)
F) A) and C)

Question 14

A college student decides to spend the afternoon watching three movies rented from Red Box. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the 3rd movie?

Accepted Answer

A)   $1
B)   $8
C)   $4
D)   $2E) B) and C)
F) A) and D)

Question 15

Scarcity reflects our inability to satisfy wants due to:

Accepted Answer

A)   unlimited resources.
B)   limited resources.
C)   inefficient political systems.
D)   unemployed workers.E) B) and C)
F) C) and D)

Question 16

An economic model:

Accepted Answer

A)   should include all possible details.
B)   always accurately predict cause and effect.
C)   should make clear assumptions.
D)   will never use simplifying assumptions.E) None of the above
F) A) and B)

Question 17

Which is not one of the four basic questions used by economists to break down problems?

Accepted Answer

A)   What do others think?
B)   What are the trade-offs?
C)   How will others respond?
D)   Why isn't everyone already doing it?E) None of the above
F) C) and D)

Question 18

Models should:

Accepted Answer

A)   attempt to include every detail of the situation being studied.
B)   attempt to describe a situation with perfect accuracy.
C)   not be applied to microeconomics.
D)   describe a real life situation accurately.E) A) and C)
F) A) and B)

Question 19

The principles of economics cannot explain which of the following:

Accepted Answer

A)   Why people choose to work or go to college.
B)   Why a country might prosper.
C)   How the value of money changes over time.
D)   How the temperature index is measured.E) A) and D)
F) A) and C)

Question 20

Scarcity requires that we:

Accepted Answer

A)   make sure we only want things that we are capable of consuming and producing.
B)   change our fiscal policy until the situation of scarcity is eliminated.
C)   make decisions in order to arrange our resources rationally.
D)   adopt economic policies that will lead to unlimited resources.E) B) and D)
F) B) and C)

Exam 1: Economics and Life

Correct Answer
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Correct Answer
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Scarcity requires that we:

Correct Answer
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"More people purchase chap stick when the weather man announces that we are in for a very windy week." This statement implies that:

Correct Answer
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An economic model:

Correct Answer
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Which broad field of economics would most likely study how consumers respond to a hike in cigarette taxes?

Correct Answer
verified

Which of the following could be an example of a question that would be studied in microeconomics?

Correct Answer
verified

Scarcity is:

Correct Answer
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The broad field of _____________ would most likely study how all consumers respond to a hike in cigarette taxes.

Correct Answer
verified

"Late registration will result in an additional $30 fee." This is an example of:

Correct Answer
verified

When we assume that consumers want to pay the lowest price possible, we assume that consumers are:

Correct Answer
verified

In the early 1990s, before pay at the pump was an option, a gas station decides to force people to pre-pay due to drive-offs. The opportunity cost of this decision may include:

Correct Answer
verified

A positive statement:

Correct Answer
verified

Having a goal that does not include making a profit can often explain why the unprofitable idea has not been implemented. These types of ideas may include:

Correct Answer
verified

Models should:

Correct Answer
verified

The principles of economics cannot explain which of the following:

Correct Answer
verified

Which of the following is considered a microeconomic issue?

Correct Answer
verified

Scarcity reflects our inability to satisfy wants due to:

Correct Answer
verified

Which is not one of the four basic questions used by economists to break down problems?

Correct Answer
verified

As monthly rain levels rise, golf course revenue falls because casual golfers prefer to stay dry. This is an example of:

Correct Answer
verified

Exam 1: Economics and Life

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Scarcity requires that we:

Correct AnswerverifiedShow Answer

"More people purchase chap stick when the weather man announces that we are in for a very windy week." This statement implies that:

Correct AnswerverifiedShow Answer

An economic model:

Correct AnswerverifiedShow Answer

Which broad field of economics would most likely study how consumers respond to a hike in cigarette taxes?

Correct AnswerverifiedShow Answer

Which of the following could be an example of a question that would be studied in microeconomics?

Correct AnswerverifiedShow Answer

Scarcity is:

Correct AnswerverifiedShow Answer

The broad field of _____________ would most likely study how all consumers respond to a hike in cigarette taxes.

Correct AnswerverifiedShow Answer

"Late registration will result in an additional $30 fee." This is an example of:

Correct AnswerverifiedShow Answer

When we assume that consumers want to pay the lowest price possible, we assume that consumers are:

Correct AnswerverifiedShow Answer

In the early 1990s, before pay at the pump was an option, a gas station decides to force people to pre-pay due to drive-offs. The opportunity cost of this decision may include:

Correct AnswerverifiedShow Answer

A positive statement:

Correct AnswerverifiedShow Answer

Having a goal that does not include making a profit can often explain why the unprofitable idea has not been implemented. These types of ideas may include:

Correct AnswerverifiedShow Answer

Models should:

Correct AnswerverifiedShow Answer

The principles of economics cannot explain which of the following:

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Which of the following is considered a microeconomic issue?

Correct AnswerverifiedShow Answer

Scarcity reflects our inability to satisfy wants due to:

Correct AnswerverifiedShow Answer

Which is not one of the four basic questions used by economists to break down problems?

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As monthly rain levels rise, golf course revenue falls because casual golfers prefer to stay dry. This is an example of:

Correct AnswerverifiedShow Answer

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