Econ 312 week 1 quiz

ECON 312 Week 1 Quiz

1. (TCO 1) The general concern of economics is with the study of the

2. (TCO 1) The term scarcity in economics refers to the fact that

3. (TCO 1) Are the goods that businesses offer for "free" to consumers also free to society?

4. (TCO 1) Which is considered to be an economic resource by economists?

5. (TCO 1) If an economy is producing at a point inside a production possibilities curve, then

6. (TCO 1) Which would not be characteristic of a capitalist economy?

7. (TCO 1) The term dollar votes means

8. (TCO 1) The circular flow model

9. (TCO 1) In a market system, well-defined property rights are important because they

10. (TCO 1) Which is necessary to make a trade in a barter economy?

11. (TCO 1) Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. What is the opportunity cost of Tammie’s trip to the concert? Show your calculations

12. (TCO 1) Identify some intrinsic qualities of capitalist and command economic systems. Identify two countries that practice each.

1. (TCO 2) A demand curve

2. (TCO 2) In the past few years, the demand for donuts has greatly increased. This increase in demand might best be explained by

3. (TCO 2) Which of the following is most likely to be an inferior good?

4. (TCO 2) The demand curve for a product might shift as the result of a change in

5. (TCO 2) The supply curve shows the relationship between

6. (TCO 2) If the demand for product X is inelastic, a 4% increase in the price of X will

7. (TCO 2) If the price of hand calculators falls from $10 to $9 and, as a result, the quantity demanded increases from 100 to 125, then

8. (TCO 2) If quantity demanded is completely unresponsive to price

9. (TCO 2) The state legislature has cut Gigantic State University's appropriations. GSU's Board of Regents decides to increase tuition fees to compensate for the loss of revenue. The board is assuming that the

10. (TCO 2) The more time consumers have to adjust to a change in price

11. (TCO 2) What is the Law of Demand? Why does the demand curve slope downwards?

12. (TCO 2) Suppose the price of widgets rises from $7 to $9 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Use the Midpoint formula and please show your work.

ECON 312 Week 2 Quiz

1. (TCO 2) Economists use the term "demand" to refer to

2. (TCO 2) Which of the following would not shift the demand curve for beef?

3. (TCO 2) Which of the following is most likely to be an inferior good?

4. (TCO 2) Which of the following would mostly likely increase the demand for gasoline?

5. (TCO 2) The supply curve shows the relationship between

6. (TCO 2) The price elasticity of demand is generally

7. (TCO 2) Suppose the price of local cable TV service increased from $16.20 to $19.80, and as a result, the number of cable subscribers decreased from 224,000 to 176,000. Use the Midpoint formula to find the answer. Along this portion of the demand curve, price elasticity of demand is

8. (TCO 2) A firm can sell as much as it wants at a constant price. Demand is thus

9. (TCO 2) The demand schedules for such products as eggs, bread, and electricity tend to be

10. (TCO 2) The demand for autos is likely to be

11. (TCO 2) What is the Law of Supply? Why does the supply curve slope upwards? 12. (TCO 2) Suppose the price of widgets falls from $7 to $5 and consumption of widgets rises from 15 widgets a month to 25 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why? Use the Midpoint formula and please show your work.

ECON 312 Week 3 Quiz

1. (TCO 3) Which of the following constitutes an implicit cost to the Johnston Manufacturing Company?

2. (TCO 3) To economists, the main difference between the short run and the long run is that

3. (TCO 3) Which of the following industries most closely approximates pure competition?

4. (TCO 3) Which of the following statements applies to a purely competitive producer?

5. (TCO 3) Which of the following is correct?

6. (TCO 3) Barriers to entering an industry

7. (TCO 3) The restaurant, legal assistance, and clothing industries are each illustrations of

8. (TCO 3) Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a monopolistic competitor?

9. (TCO 3) Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a differentiated oligopolist in a highly concentrated industry?

10. (TCO 3) If the four-firm concentration ratio for industry X is 80

11. (TCO 3) What is the LAW OF DIMINISHING RETURNS, and why is this law considered a short-run phenomenon?

12. (TCO 3) Identify the primary characteristics of monopolistic competition and oligopoly. Give examples of each.

1. (TCO 3) Economic profits are calculated by subtracting

2. (TCO 3) To economists, the main difference between the short run and the long run is that

3. (TCO 3) Economists would describe the U.S. automobile industry as

4. (TCO 3) A purely competitive seller is

5. (TCO 3) Which of the following is correct?

6. (TCO 3) Confronted with the same unit cost data, a monopolistic producer will charge

7. (TCO 3) Monopolistic competition means

8. (TCO 3) Product variety is likely to be greater in

9. (TCO 3) Which of the following is the best example of oligopoly?

10. (TCO 3) Concentration ratios measure the

11. (TCO 3) What is the LAW OF DIMINISHING RETURNS, and why is this law considered a short-run phenomenon?

12. (TCO 3) Identify the primary characteristics of monopolistic competition and oligopoly. Give examples of each.

ECON 312 Week 5

1. (TCO 6) Fiscal policy refers to the

2. (TCO 6) Suppose that the economy is in the midst of a recession. Which of the following policies would most likely end the recession and stimulate output growth?

3. (TCO 6) The crowding-out effect of expansionary fiscal policy suggests that

4. (TCO 5) Which of the following would not shift the aggregate supply curve?

5. (TCO 6) Other things equal, a reduction in personal and business taxes can be expected to

6. (TCO 6) The MPC can be defined as that fraction of a

7. (TCO 6) Dissaving means

8. (TCO 5) Refer to the graph. Which of the following factors will shift AD1 to AD3?

9. (TCO 6) The multiplier is

10. (TCO 5) The American Recovery and Reinvestment Act of 2009 was implemented primarily to

11. (TCO 5) What effect would each of the following have on aggregate demand or aggregate

12. (TCO 6) Why do some economists believe that tax cuts are critical to help revive an economy experiencing a recession?

1. (TCO 6) Expansionary fiscal policy is so named because it

2. (TCO 6) An economist who favors smaller government would recommend

3. (TCO 6) The lag between the time and the need for fiscal action is recognized and the time the action is taken is referred to as the

4. (TCO 5) The determinants of aggregate supply

5. (TCO 6) Other things equal, a reduction in personal and business taxes can be expected to

6. (TCO 6) The MPC can be defined as that fraction of a

7. (TCO 6) The size of the MPC is assumed to be

8. (TCO 5) Refer to the graph. Which of the following factors will shift AD1 to AD3?

9. (TCO 6) The multiplier can be calculated as:

10. (TCO 5) The American Recovery and Reinvestment Act of 2009

11. (TCO 5) What effect would each of the following have on aggregate demand or aggregate supply? Explain. a. A reduction in personal income tax. b. An increase in payroll taxes paid by the employer

12. (TCO 6) Why do some economists believe that tax cuts are critical to help revive an economy experiencing a recession?

ECON 312 Week 7 Quiz

1. (TCO 8) Specialization and trade between individuals or between nations lead to:

2. (TCO 8) Suppose the United States sets a limit on the number of tons of sugar that can be imported each year. This is an example of a(n)

3. (TCO 9) Which of the following is not included in the current account of a nation's balance of payments?

4. (TCO 9) If the dollar price of the yen rises, then

5. (TCO 9) In recent years, the United States has had large

6. (TCO 9) Answer the next question(s) on the basis of the following table which indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place.

7. (TCO 8) The primary gain from international trade is

8. (TCO 8) Refer to the graphs below. Stanville has a comparative advantage in producing

9. (TCO 9) The Group of Eight (G8) Nations which periodically have jointly intervened to influence the value of the dollar include

10. (TCO 8) As a percentage of GDP, U.S. exports are

11. (TCO 8 and 10) Explain some of problems with the argument that trade protection is needed to protect American jobs.

12. (TCO 9) What are the economic effects of a depreciation of the US dollar on US trade balances?

1. (TCO 8) The United States' most important trading partner quantitatively is

2. (TCO 8) Suppose the United States sets a limit on the number of tons of sugar that can be imported each year. This is an example of a(n)

3. (TCO 9) Which of the following is not included in the current account of a nation's balance of payments?

4. (TCO 9) If the dollar price of the yen rises, then

5. (TCO 9) In terms of individual nations, the largest U.S. trade deficit is with

6. (TCO 9) Answer the next question(s) on the basis of the following table which indicates the dollar price of libras, the currency used in the hypothetical nation of Libra. Assume that a system of freely floating exchange rates is in place.

7. (TCO 8) Other things equal, economists would prefer

8. (TCO 8) Refer to the graphs below. Stanville has a comparative advantage in producing

9. (TCO 9) Suppose the G8 Nations decide that the dollar is too strong (high in value) relative to the yen. These nations might

10. (TCO 8) Which country has the largest share of total world exports?

11. (TCO 8 and 10) Evaluate this argument for a trade barrier: “The U.S. needs protection from cheap foreign labor.” Include some reasons why this might be an invalid statement.

12. (TCO 9) What effect might the depreciation of the U.S. dollar relative to the Japanese yen have on imports and exports to and from each country?