MasEco2 Quiz

1
Jamie has enough money to buy a Mountain Dew, a Pepsi, or a bag of chips. He chooses to buy the
Mountain Dew. The opportunity cost of the Mountain Dew is:
(1 Point)
The Pepsi and the bag of chips
The Pepsi or the bag of chips, whichever is the highest-valued alternative forgone
The Mountain Dew
The Pepsi because it is a drink, as is the Mountain Dew
Zero because he enjoys the Mountain Dew
2
If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will
(1 Point)
Eat the slice of pizza
Not eat the slice of pizza
Be unable to choose between eating or not eating
Eat half the slice
Eat or will not eat the slice, depending on how much the marginal benefit exceeds the marginal cost
3

In the figure, ceteris paribus, an increase in x is associated with_____

(1 Point)
an increase in y
a decrease in y
an increase in z
 a random change in x
no change in either y or z
4

The slope of the line _____

(1 Point)
at point A equals 1/6
at point B equals 1
equals -4
equals -9
equals 1/4
5
Workers in the advanced economies have ____ human capital and ____ physical capital to work with than
do workers in the developing economics
(1 Point)
less, more
more, less
the same amount of, more
more, the same amount of 
more, more
6
Moving along its PPF, a country produces 8 additional desktop computers, and its production of laptop
computers decreases by 4. The opportunity cost of 1 desktop computer is _____
(1 Point)
4 laptop computers
8 desktop computers
 1 desktop computer
2 laptop computers
1/2 of a laptop computer
7
In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40
tacos. Scott's opportunity  cost of producing 1 taco is _____
(1 Point)
1/2 of a pizza
1 pizza
2 pizzas
20 pizzas
2 tacos
8
Pizza and tacos are substitutes. If the price of pizza rises, then _____
(1 Point)
the demand for pizza decreases and the demand for tacos increases
the demand for both goods decreases
the quantity of tacos demanded increases, and the quantity of pizza demanded decreases
the quantity of pizza demanded decreases, and the demand for tacs increases
the demand for each good decreases because both are normal goods
9
If, when the price of a good rises by 10%, the quantity supplied of the good increases by 5%, then the
elasticity of supply 
(1 Point)
exceeds 1, and the supply of the good is elastic
is negative, and the supply of the good is inelastic
is less than 1, and the suppy of the good is elastic
is less than 1, and the supply of the good is inelastic
exceeds 1 and the supply of the good is inelastic
10
If the government imposes a rent ceiling of $400 a month in the housing market shown, it will create
(1 Point)
a shortage of 2,000 units
a shortage of 4,000 units
a surplus of 2,000 units
a surplus of 4,000 units
no shortage or surplus of units

MasEco 2 Exam

Points:

21/30
Correct
1/1 Points
1
To economists, scarcity means that:
limited wants cannot be satisfied by the unlimited resources
a person looking for work is not able to find a job
the number of people without jobs rises when economic times are bad
there can never be answers to the what, how. or for whom questions
unlimited wants cannot be satisfied by the limited resources
Correct
1/1 Points
2
The question "Do economics majors or sociology majors earn more after they graduate?" is an example of
a _____ question
What
How
For whom
Where
Why
Correct
1/1 Points
3
The only thing that is relevant when a person makes a rational choice is ______
The opinion of society
The price of the good the person wants to purchase
Whether or not the outcome of the choice will be favorable
The wants and preferences of the person making the choice
The person is following incentives
Correct
1/1 Points
4
If a decision is made and it is the best choice for society, the decision is said to be _____
A valid economic choice
Made in self-interest
Made in the social interest
Consistent with scarcity
A want-maximizing choice
Correct
1/1 Points
5
Jamie has enough money to buy a Mountain Dew, a Pepsi, or a bag of chips. He chooses to buy the
Mountain Dew. The opportunity cost of the Mountain Dew is:
The Pepsi and the bag of chips
The Pepsi or the bag of chips, whichever is the highest-valued alternative forgone
The Mountain Dew
The Pepsi because it is a drink, as is the Mountain Dew
Zero because he enjoys the Mountain Dew
Correct
1/1 Points
 6
If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will
Eat the slice of pizza
Not eat the slice of pizza
Be unable to choose between eating or not eating
Eat half the slice
Eat or will not eat the slice, depending on how much the marginal benefit exceeds the marginal cost
Incorrect
0/1 Points
7
When people make rational choices, they
Behave selfishly
Do not consider their emotions
Weigh the costs and benefits of their options and act to satisfy their wants
Necessarily make ad ecision in the social interest
Are necessarily making the best decision
Correct
1/1 Points
8

In the figure, ceteris paribus, an increase in x is associated with _____

an increase in y
a decrease in y
an increase in z
 a random change in x
no change in either y or z
Correct
1/1 Points
9

The slope of the line _____

at point A equals 1/6
at point B equals 1
equals -4
equals -9
equals 1/4
Correct
1/1 Points
10
Human capital is _____
solely the innate ability with which we are born
the money that people have saved
the knowledge people accumulate through education and work experience
machinery that needs human supervision
any type of machinery
Correct
1/1 Points
11
Wages are paid to ____ and interest is paid to ____
entrepreneurs, capital
 labor, capital
labor, land
entrepreneurs, land
labor, entrepreneurs
Correct
1/1 Points
12
Workers in the advanced economies have ____ human capital and ____ physical capital to work with than
do workers in the developing economics
less, more
more, less
the same amount of, more
more, the same amount of 
more, more
Incorrect
0/1 Points
13
Points inside the PPF are all _____
unattainable and have fully employed resources
attainable and have fully employed resources
unattainable and have some unemployed resources
attainable and have some unemployed resources
unaffordable and productive resources are misallocated
Correct
1/1 Points
14
Moving along its PPF, a country produces 8 additional desktop computers, and its production of laptop
computers decreases by 4. The opportunity cost of 1 desktop computer is _____
4 laptop computers
8 desktop computers
1 desktop computer
2 laptop computers
1/2 of a laptop computer
Incorrect
0/1 Points
15
If a nation devotes a larger share of its current production to consumption goods, then _____
 its economic growth will slow doen
its production possibilities will expand
its production possibilities will shrink
some factors of production will become unemployed
it must produce at the efficient point of its PPF
Correct
1/1 Points
16
The opportunity cost of economic growth is _____ current consumption, and the benefit of economic
growth is _____ future consumption
increased, increased
increased, decreased
no loff of, incrased
decreased, increased
decreased, decreased
Correct
1/1 Points
17
In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40
tacos. Scott's opportunity  cost of producing 1 taco is _____
1/2 of a pizza
1 pizza
2 pizzas
20 pizzas
2 tacos
Correct
1/1 Points
18
When the price of a cell phone falls and other things remain the same, the quantity of cell phones
demanded _____. and the demand for cell phone _____
is unchanged, increases
decreases, is unchanged
decreases, decreases
increases, is unchanged
increases, increases
Correct
1/1 Points
 19
Pizza and tacos are substitutes. If the price of pizza rises, then _____
the demand for pizza decreases and the demand for tacos increases
the demand for both goods decreases
the quantity of tacos demanded increases, and the quantity of pizza demanded decreases
the quantity of pizza demanded decreases, and the demand for tacs increases
the demand for each good decreases because both are normal goods
Incorrect
0/1 Points
20
the demand for a good is elastic if:
consumers respond strongly to changes in the price of the good
a large percentage change in price brings about a small percentage change in quantity demanded
a small percentage change in price brings about a small percentage change in quantity demanded
the quantity demanded is not responsive to price changes
a change in the quantity demanded brings a small change in the rice of the good
Incorrect
0/1 Points
21
When a firm raises the price of its product, the firm's total revenue is _____
decreases if demand for its product is unit elastic
increases if demand for it s product is unit elastic
decreases if demand for its product is inelastic
increases if demand for its product is elastic
decreases if demand for its product is elastic
Correct
1/1 Points
22
If, when the price of a good rises by 10%, the quantity supplied of the good increases by 5%, then the
elasticity of supply 
exceeds 1, and the supply of the good is elastic
is negative, and the supply of the good is inelastic
is less than 1, and the suppy of the good is elastic
is less than 1, and the supply of the good is inelastic
exceeds 1 and the supply of the good is inelastic
Incorrect
0/1 Points
 23
The greater the amount of time that passes after the price of a good changed, the _____ of that good
becomes
less elastic the supply
more elastic the supply
more negative the supply
steeper the supply curve
more inelastic the supply
Correct
1/1 Points
24
The supply of beachfront property on Boracay Island is _____
elastic
unit elastic
negative
inelastic
perfectly elastic
Correct
1/1 Points
25
To determine whether two goods are complements or substitutes, economists use the _____
price elasticity of supply
cross elasticity of demand
price elasticity of demand
income elasticity of demand
substitute elasticity of demand
Correct
1/1 Points
26
The income elasticity of demand for used cars is less than zero. So, used cars are _____
a good with an inelastic demand
a normal good
an inferior good
a perfectly inelastic good
substitute goods
Correct
1/1 Points
 27

If the government imposes a rent ceiling of $400 a month in the housing market shown, it will create
a shortage of 2,000 units
a shortage of 4,000 units
a surplus of 2,000 units
a surplus of 4,000 units
no shortage or surplus of units
Incorrect
0/1 Points
28
A minimum wage set above the equilibrium wage rate
increases the quantity of labor services supplied but does not change the quantity of labor
demanded
decreases the quantity of labor services demanded but does not change the quantity of labor
supplied
shifts the labor supply curve rightward
shifts the labor demand curve leftward
increases the amount of unemployment
Will be reviewed
29
If a minimum wage is set is above the equilibrium wage rate,
the quantity of labor services demanded increases
job search activity increases
the supply of labor increases
 unemployment decreases because more workers accept jobs at the higher minimum wage rate
the quantity of labor supplied decreases because unemployment increases
Incorrect
0/1 Points
30
A price ceiling is a government regulation that makes it illegal to charge a price _____
below the equilibrium price
above the equilibirum price
above what most people can afford
above some specified level
that differs from the market equilibrium price