ECN220 Economics - Week 1 Assessment 1 1.

The word that comes from the Greek word for "one who manages a household" is (Points : 2) a. market. b. consumer. c. producer. D. economy. 2. Resources are (Points : 2) a. scarce for households but plentiful for economies. b. plentiful for households but scarce for economies. C. scarce for households and scarce for economies. d. plentiful for households and plentiful for economies. 3. Economics deals primarily with the concept of (Points : 2) A. scarcity. b. poverty. c. change. d. power. 4. Which of the following questions is not answered by the decisions that every society must make? (Points : 3) A. What determines consumer preferences? b. What goods will be produced? c. Who will produce the goods? d. Who will consume the goods? 5. For society, a good is not scarce if (Points : 2) a. at least one individual in society can obtain all he or she wants of the good. b. firms are producing the good at full capacity. C. All members of society can have all they want of the good. d. those who have enough income can buy all they want of the good. 6. Which of the following products would be considered scarce? (Points : 2) a. golf clubs b. Picasso paintings c. apples D. All of the above are correct 7. The adage, "There is no such thing as a free lunch," means (Points : 2) a. even people on welfare have to pay for food. b. the cost of living is always increasing. C. to get something we like, we usually have to give up another thing we like. d. all costs are included in the price of a product.

magazines sold at newsstands. labor b. torts and venues c. An example of a price that changes only infrequently is the price of (Points : 2) a. traditional economies. 13.8. equitable outcome 9. money . force and acceleration b. Models assume away irrelevant details. capital D. equal distribution C. The most common data for testing economic theories come from (Points : 3) a. true cost. b. Which of the following terms are most closely associated with the study of economics? (Points : 3) a. Models cannot be used to explain how the economy functions. direct cost. carefully controlled and conducted laboratory experiments. d. opportunity cost. c. d. crude oil. 10. c. d. historical episodes of economic change. comparative advantage and deadweight loss 11. stocks on the New York Stock Exchange. The more details a model includes. minimum waste d. absolute fairness b. b. Which of the following statements about models is correct? (Points : 3) a. residential real estate. land c. D. B. 14. the better the model. c. 12. explicit cost. b. Which of the following items is not a factor of production? (Points : 2) a. Which of the following phrases best captures the notion of efficiency? (Points : 3) a. Models cannot be used to make predictions. What you give up to obtain an item is called your (Points : 3) A. ego and cognitive dissonance D. C. centrally planned economies.

concerned with positive economics rather than normative economics. 18. 19. ought to be. Another name for goods and services produced by firms is (Points : 2) a. c. outside the production possibilities frontier. individual decisionmakers. b. d. factors of production. D. C. Macroeconomics is the study of (Points : 2) a. the concept of capital d. All of the above are economic models. c. economy-wide phenomena. international trade. inputs. Which of the following is an example of an economic model? (Points : 3) A. c. b. A normative statement describes how the world (Points : 3) a. resources. on or inside the production possibilities frontier. Production is efficient if the economy is producing at a point (Points : 3) A. is in the present. . c. scientists. d. 16. b. on the production possibilities frontier. inside the production possibilities frontier. markets for large products. d. policy advisers. the production possibilities frontier b. B. was in the past. the concept of opportunity cost c. When economists are trying to help improve the world they are (Points : 3) a. will be in the future. output. 17. D. b.15. concerned with macroeconomics rather than microeconomics. 20.

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