Question 3 1. Suppose the cost of producing copper tubing is $1 per foot. If pro

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Question

Question 3
1.
Suppose the cost of producing copper tubing is $1 per foot. If production costs were measured on the vertical axis and quantity of copper tubing were measured on the horizontal axis, which of the following lines would have the smallest slope?
Answer

a. the 45-degree line

b. a line representing the quantity of tubing measured in feet

c. a line representing the quantity of tubing measured in inches

d. a line representing the quantity of tubing measured in yards

e. any vertical line

Question 4
1.
Economics
Answer

a. studies human behavior when scarcity exists and choices must be made

b. is the only social science that can explain the existence and behavior of public institutions

c. is better at showing the way things ought to be than the other social sciences are

d. can accurately explain all human behavior since it is based on the assumption of rationality

e. provides the only reasonable explanation of how people make decisions

Question 5
1.
Profit is the payment made for land resources.
Answer

a. False

b. True

Question 6
1.
Theory in economics
Answer

a. bears no relation to reality

b. focuses on the unique aspects of each situation

c. involves some simplification of reality

d. involves so much distortion of reality that it is worthless

e. approaches reality in all its complexity

Question 7
1.
Economists believe that individuals respond in a predictable way to changes in costs and benefits. The term that best describes this belief is
Answer

a. rational behavior

b. demand

c. supply

d. scarcity

e. opportunity cost

Question 8
1.
The fallacy of composition is the error of believing a cause-effect relationship exists between two events that are associated in time.
Answer

a. True

b. False

Question 9
1.
Which of the following is the fundamental resource that is the basis of labor?
Answer

a. time

b. natural resources

c. capital

d. entrepreneurial ability

e. money

Question 10
1.
A country has an absolute advantage in the production of a good if that country
Answer

a. has the greatest opportunity cost of producing the good and produces it with the fewest resources

b. can produce the good using fewer resources than another country would require

c. has the lowest opportunity cost of producing the good regardless of whether it is produced with the fewest resources

d. has the lowest opportunity cost of producing the good and can produce it with the fewest resources

e. has the greatest opportunity cost of producing the good regardless of whether it is produced with the fewest resources

Question 11
1.
If the production possibilities frontier is a straight line,
Answer

a. its slope will equal -1

b. resources must be equally adaptable at producing either product

c. resources must be unemployed

d. resources must not be used efficiently

e. society must not be using the latest technology

Question 12
1.
Which of the following would shift the production possibilities frontier outward?
Answer

a. an increase in the size of the labor force

b. the end of a strike by a labor union

c. more efficient use of existing resources and technology

d. the government prints more money

e. society's desire to produce more of one of the goods

Question 13
1.
Households supply four basic types of resources. They include all of the following except
Answer

a. entrepreneurial ability

b. final goods and services

c. natural resources

d. capital

e. labor

Question 14
1.
The largest source of federal government revenue is
Answer

a. corporate income taxes

b. tariffs on imported goods and other customs fees and duties

c. individual income taxes

d. sales and excise taxes

e. payroll taxes

Question 15
1.
Which of the following is not an example of a business operated by a consumer cooperative?
Answer

a. apartment building

b. electric power facility

c. grocery store

d. health plan

e. Sunkist, a farm cooperative owned and operated by citrus growers

Question 16
1.
The law of demand states that
Answer

a. price and quantity demanded are inversely related

b. there is a positive relationship between price and quantity demanded

c. price is the only factor that influences the quantity that people are willing and able to buy

d. the demand curve shifts whenever the price of a good changes

e. by producing a product, firms create a demand for it

Question 17
1.
If demand for personal computers increases as a result of an increase in income,
Answer

a. personal computers must be an inferior good

b. personal computers must be a normal good

c. personal computers must be a complement

d. the substitution effect is larger than the income effect

e. the substitutes for personal computers must be inferior goods

Question 18
1.
Which of the following will cause the demand curve for a good to shift to the left?
Answer

a. a decrease in the price of a complementary good

b. an increase in the price of the good

c. an increase in the price of a substitute good

d. a decrease in the price of the good

e. an expectation of a future price decline

Question 19
1.
Michelle Palmisano has the rare talent to be a top rodeo rider, yet her winnings are not anywhere near the level of players in the major pro sports. The reason is that
Answer

a. anyone can ride in a rodeo

b. consumer incomes have been increasing substantially

c. technology for saddles has not advanced for a long time

d. demand and supply have simultaneously shifted by unknown amounts

e. demand for her talent is not sufficient to support a high level of pay

Question 20
1.
The midpoint quantity between 100 and 300 units is
Answer

a. 20,000 units

b. 200 units

c. 150 units

d. 300 units

e. 100 units

Explanation / Answer

Question 4 1. Economics Answer
a. studies human behavior when scarcity exists and choices must be made
b. is the only social science that can explain the existence and behavior of public institutions
c. is better at showing the way things ought to be than the other social sciences are
d. can accurately explain all human behavior since it is based on the assumption of rationality
e. provides the only reasonable explanation of how people make decisions

Question 5 1. Profit is the payment made for land resources. Answer
a. False
b. True

Question 6 1. Theory in economics Answer
a. bears no relation to reality
b. focuses on the unique aspects of each situation
c. involves some simplification of reality
d. involves so much distortion of reality that it is worthless
e. approaches reality in all its complexity

Question 7 1. Economists believe that individuals respond in a predictable way to changes in costs and benefits. The term that best describes this belief is Answer
a. rational behavior
b. demand
c. supply
d. scarcity
e. opportunity cost

Question 8 1. The fallacy of composition is the error of believing a cause-effect relationship exists between two events that are associated in time. Answer
a. True
b. False

Question 9 1. Which of the following is the fundamental resource that is the basis of labor?Answer
a. time
b. natural resources
c. capital
d. entrepreneurial ability
e. money

Question 10 1. A country has an absolute advantage in the production of a good if that country Answer
a. has the greatest opportunity cost of producing the good and produces it with the fewest resources
b. can produce the good using fewer resources than another country would require
c. has the lowest opportunity cost of producing the good regardless of whether it is produced with the fewest resources
d. has the lowest opportunity cost of producing the good and can produce it with the fewest resources
e. has the greatest opportunity cost of producing the good regardless of whether it is produced with the fewest resources

Question 11 1. If the production possibilities frontier is a straight line, Answer
a. its slope will equal -1
b. resources must be equally adaptable at producing either product
c. resources must be unemployed
d. resources must not be used efficiently
e. society must not be using the latest technology

Question 12 1. Which of the following would shift the production possibilities frontier outward? Answer
a. an increase in the size of the labor force
b. the end of a strike by a labor union
c. more efficient use of existing resources and technology
d. the government prints more money
e. society's desire to produce more of one of the goods

Question 13 1. Households supply four basic types of resources. They include all of the following except Answer
a. entrepreneurial ability
b. final goods and services
c. natural resources
d. capital
e. labor

Question 14 1. The largest source of federal government revenue is Answer
a. corporate income taxes
b. tariffs on imported goods and other customs fees and duties
c. individual income taxes
d. sales and excise taxes
e. payroll taxes

Question 15 1. Which of the following is not an example of a business operated by a consumer cooperative? Answer
a. apartment building
b. electric power facility
c. grocery store
d. health plan
e. Sunkist, a farm cooperative owned and operated by citrus growers

Note that 15 is a trick question :)

Question 16 1. The law of demand states that Answer
a. price and quantity demanded are inversely related
b. there is a positive relationship between price and quantity demanded
c. price is the only factor that influences the quantity that people are willing and able to buy
d. the demand curve shifts whenever the price of a good changes
e. by producing a product, firms create a demand for it

Question 17 1. If demand for personal computers increases as a result of an increase in income, Answer
a. personal computers must be an inferior good
b. personal computers must be a normal good
c. personal computers must be a complement
d. the substitution effect is larger than the income effect
e. the substitutes for personal computers must be inferior goods

Question 18 1. Which of the following will cause the demand curve for a good to shift to the left? Answer
a. a decrease in the price of a complementary good
b. an increase in the price of the good
c. an increase in the price of a substitute good
d. a decrease in the price of the good
e. an expectation of a future price decline

Question 19 1. Michelle Palmisano has the rare talent to be a top rodeo rider, yet her winnings are not anywhere near the level of players in the major pro sports. The reason is that Answer
a. anyone can ride in a rodeo
b. consumer incomes have been increasing substantially
c. technology for saddles has not advanced for a long time
d. demand and supply have simultaneously shifted by unknown amounts
e. demand for her talent is not sufficient to support a high level of pay

Question 20 1. The midpoint quantity between 100 and 300 units is Answer
a. 20,000 units
b. 200 units
c. 150 units
d. 300 units
e. 100 units

I hope that you found this answer useful towards your studies. It took a considerable amount of thought, time, and effort to compose, and and I'd sincerely appreciate a lifesaver rating! It would really make my day! :)

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