Quizes 1-3

  1. Microeconomics is the study of



    C)
  2. Which of the following is a positive economic statement?



    B)
  3. The term ________ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade.




    B)
  4. The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each. What is the opportunity cost of buying a cappuccino?



    D)
  5. Consider the following statements:a. Car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area.b. Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment.c. Firms produce more of a particular DVD when its selling price rises.Which of the above statements demonstrates that economic agents respond to incentives?





    C)
  6. Suppose when the price of laptops fall, college students buy more laptops. This implies that




    D)
  7. Which of the following statements is true?




    C)
  8. DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic detailing package is $40, and he charges $75 for this service. For a total price of $90, DeShawn will also detail the car's engine, a service that adds an additional $20 to the total cost of the package. What is the marginal cost of adding the engine detailing to the basic detailing package?




    A)
  9. Consider the following economic agents: a. the governmentb. consumersc. producersWho, in a centrally planned economy, decides what goods and services will be produced with the scarce resources available in that economy?





    C)
  10. Soo Jin shares a one-bedroom apartment with her classmate. Her share of the rent is $700 per month. She is considering moving to a studio apartment which she will not have to share with anyone. The studio apartment rents for $950 per month. Recently, you ran into Soo Jin on campus and she tells you that she has moved into the studio apartment. Soo Jin is as rational as any other person. As an economics major, you rightly conclude that




    D)
  11. In economics, choices must be made because we live in a world of




    C)
  12. Suppose a cell phone manufacturer currently sells 20,000 cell phones per week and makes a profit of $5,000 per week. A manager at the plant observes, "Although the last 3,000 cell phones we produced and sold increased our revenue by $6,000 and our costs by $6,700, we are still making an overall profit of $5,000 per week so I think we're on the right track. We are producing the optimal number of cell phones."

    Had the firm not produced and sold the last 3,000 cell phones, would its profit be higher or lower, and if so by how much? 




    C)
  13. Making optimal decisions "at the margin" requires 




    C)
  14. The highest valued alternative that must be given up to engage in an activity is the definition of 




    C)
  15. Which of the following generates productive efficiency?




    C)
  16. Productive efficiency is achieved when 




    C)
  17. The relationship between consumer spending and disposable personal income is 




    D)
  18. In economics, the accumulated skills and training that workers have is known as 





    D)
  19. How are the fundamental economic questions answered in a market economy?




    B)
  20. In economics, the term ________ means "additional" or "extra". 




    C)
  21. The natural resources used in production are made available in the




    A)
Author
brentcstanley
ID
173091
Card Set
Quizes 1-3
Description
A collection of the first three quizes in Unit 1
Updated