Question 1

Which of the following is considered a macroeconomic topic?

Accepted Answer

A)   iTunes raises the price of all its music.
B)   iTunes raises the price of its pop artists' music only.
C)   A local McDonald's franchise decides to hire more workers.
D)   The U.S. labor force participation rate falls.E) A) and D)
F) B) and D)

Question 2

A ______ statement is most likely to include the word "should".

Accepted Answer

A)   positive
B)   normative
C)   factual
D)   marginalE) All of the above
F) A) and B)

Question 3

The extra benefit associated with producing or consuming the next unit of a good or service is known as the:

Accepted Answer

A)   revenue product.
B)   spillover.
C)   marginal benefit.
D)   economic benefit.E) A) and D)
F) C) and D)

Question 4

Who makes decisions about how to allocate resources?

Accepted Answer

A)   Individuals
B)   Businesses
C)   Governments
D)   All of these make decisions about resource allocation.E) A) and C)
F) None of the above

Question 5

Aria purchases a coffee cup from her local gas station for $5.00 that can be refilled at any time for $0.50. Economists would say that the $5.00 she spent on the cup is:

Accepted Answer

A)   an opportunity cost.
B)   a sunk cost.
C)   a marginal cost.
D)   The money spent on the cup can be all of these costs.E) A) and C)
F) A) and B)

Question 6

You are shopping at the local mall with an $80 gift card that expires tomorrow. Only three items catch your attention: a bottle of perfume, a remote control helicopter, and an "Amazing Ab Belt." You would be willing to give up $60 for the perfume, $70 for the belt, and $80 for the helicopter. Knowing this, you decide to purchase the helicopter. The opportunity cost of the helicopter is:

Accepted Answer

A)   $130, the combined value of the alternatives forgone.
B)   $80, the amount spent using the gift card.
C)   $70, the value of the ab belt.
D)   $60, the value of the perfume.E) All of the above
F) A) and D)

Question 7

The two most important actors of the economy are:

Accepted Answer

A)   land and capital.
B)   households and firms.
C)   firms and capital.
D)   exports and imports.E) B) and D)
F) All of the above

Question 8

As corn prices rise, salsa sales tend to fall. This is an example of:

Accepted Answer

A)   a positive correlation.
B)   inferior goods.
C)   two uncorrelated events.
D)   a negative correlation.E) All of the above
F) None of the above

Question 9

Which of the following is an example of a goal other than making a profit?

Accepted Answer

A)   Helping the poor
B)   Making great art
C)   Promoting social justice
D)   All of these are examples of goals other than making a profit.E) A) and B)
F) None of the above

Exam 1: Economicsand Life

The extra benefit associated with producing or consuming the next unit of a good or service is known as the:

Correct Answer
verified

As corn prices rise, salsa sales tend to fall. This is an example of:

Correct Answer
verified

Who makes decisions about how to allocate resources?

Correct Answer
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Which of the following is considered a macroeconomic topic?

Correct Answer
verified

A ______ statement is most likely to include the word "should".

Correct Answer
verified

Aria purchases a coffee cup from her local gas station for $5.00 that can be refilled at any time for $0.50. Economists would say that the $5.00 she spent on the cup is:

Correct Answer
verified

Which of the following is an example of a goal other than making a profit?

Correct Answer
verified

The two most important actors of the economy are:

Correct Answer
verified

Correct Answer
verified

Exam 1: Economicsand Life

The extra benefit associated with producing or consuming the next unit of a good or service is known as the:

Correct AnswerverifiedShow Answer

As corn prices rise, salsa sales tend to fall. This is an example of:

Correct AnswerverifiedShow Answer

Who makes decisions about how to allocate resources?

Correct AnswerverifiedShow Answer

Which of the following is considered a macroeconomic topic?

Correct AnswerverifiedShow Answer

A ______ statement is most likely to include the word "should".

Correct AnswerverifiedShow Answer

Aria purchases a coffee cup from her local gas station for $5.00 that can be refilled at any time for $0.50. Economists would say that the $5.00 she spent on the cup is:

Correct AnswerverifiedShow Answer

Which of the following is an example of a goal other than making a profit?

Correct AnswerverifiedShow Answer

The two most important actors of the economy are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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