ECON 2001 Week 1 Quiz (Chapters 1 & 2)

ECON 2001 Week 1 Quiz (Chapters 1 & 2)

Question 1

 

10 / 10 points

The branch of economics that examines the impact of choices on aggregates in the economy is:

Question options:

 

positive economics.

 

normative economics.

 

macroeconomics.

 

microeconomics.

Question 2

 

10 / 10 points

When we are forced to make choices we are facing the concept of:

Question options:

 

ceteris paribus.

 

free goods.

 

scarcity.

 

the margin.

Question 3

 

10 / 10 points

An economic system is the set of rules that define _______ and _______ .

Question options:

 

resources; prices

 

who gets to vote; when elections will be held

 

market prices; factors of production

 

how an economy’s resources are to be owned; how decisions about the resources are to be made

Question 4

 

10 / 10 points

In a market capitalist economy:

Question options:

 

factors of production are owned privately and decisions about their use are basically made by individuals.

 

factors of production are owned by the government but decisions about their use are made privately.

 

private ownership exists but decisions about resource allocation are usually made centrally by the government.

 

there is no role for the government.

Question 5

 

10 / 10 points

The branch of economics that examines the choices of consumers and firms is:

Question options:

 

positive economics.

 

normative economics.

 

macroeconomics.

 

microeconomics.

Question 6

 

10 / 10 points

Scarcity in economics means:

Question options:

 

not having sufficient resources to produce all the goods and services we want.

 

the wants of people are limited.

 

there must be poor people in rich countries.

 

economists are clearly not doing their jobs.

Question 7

 

10 / 10 points

The basic concern of economics is:

Question options:

 

to keep business firms from losing money.

 

to prove that capitalism is better than socialism.

 

to study the choices people make.

 

to use unlimited resources to produce goods and services to satisfy limited wants.

Question 8

 

10 / 10 points

Whenever a choice is made:

Question options:

 

the value of all the other choices that could have been made is called opportunity cost.

 

normative economics is encountered.

 

the problem of “all other things unchanged” results.

 

the opportunity cost of that choice is value of the next best alternative

Question 9

 

10 / 10 points

Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.

Question options:

 

unlimited resources; economic systems

 

human interactions; limited resources

 

opportunity costs; choices

 

social behavior; scarcity

PPC 1

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Question 10

 

10 / 10 points

(Exhibit: Production Possibilities Curve-Military and Civilian Goods) A movement from point G to H on Curve 1 would:

Question options:

 

require giving up military goods in order to get more civilian goods.

 

indicate that, in this economy, there is no scarcity.

 

require giving up civilian goods to get more military goods.

 

require greater efficiency in the production of civilian goods.

Question 11

 

10 / 10 points

(Exhibit: Production Possibilities Curve-Military and Civilian Goods) If an economy is at point U, and its production possibilities curve is Curve 1, this would indicate that:

Question options:

 

resources are fully employed.

 

economic growth has taken place.

 

there is inefficiency and/or unemployment.

 

the economy is maximizing its economic objectives.

Question 12

 

10 / 10 points

(Exhibit: Production Possibilities Curve-Military and Civilian Goods) If the economy is represented by Curve 1, then:

Question options:

 

point E is unattainable at the present time.

 

point G is superior to point H.

 

point H is superior to point G.

 

factors of production are not being used efficiently.

PPS 1

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Question 13

 

10 / 10 points

(Exhibit: Production Possibilities Schedule) If the economy is producing at alternative X, the opportunity cost to it of producing at Y instead of X is _______ units of consumer goods per period.

Question options:

 

0

 

6

 

8

 

14

Question 14

 

10 / 10 points

(Exhibit: Production Possibilities Schedule) If an economy is producing at alternative W, the opportunity cost to it of producing at X is _______ unit(s) of consumer goods per period.

Question options:

 

0

 

1

 

4

 

18

Question 15

 

10 / 10 points

(Exhibit: Production Possibilities Schedule) A move from alternative Y to alternative X would:

Question options:

 

result in greater unemployment.

 

decrease potential growth.

 

increase potential growth.

 

result in greater underemployment.

   
 

Attempt Score:

150 / 150 – 100 %

Overall Grade (highest attempt):

150 / 150 – 100