ECO/365 PRINCIPLES OF MICROECONOMICS The Latest Version A+ Study Guide
********************************************** ECO 365 Entire Course Link https://uopcourses.com/category/eco-365/ ********************************************** ECO 365 Week 1 Practice: The Fundamentals of Economic Quiz Complete the Week 1 The Fundamentals of Economics Quiz in McGraw-Hill ConnectÂŽ. These are randomized questions. Note: You have unlimited attempts available to complete practice assignments. The highest scored attempt will be recorded. These assignments have earlier due dates, so plan accordingly. Grades must be transferred manually to eCampus by your
instructor. Don't worry, this might happen after the due date. The opportunity cost of an action is always equal to: the next-best alternative for the resources used to undertake the action. the things you could have done instead of the action you chose to undertake. the time you give up to undertake the action. the money you give up to undertake the action.
Economic reasoning is based on the premise that: all decisions or actions are costless.
all decisions or actions have a cost associated with them. only non-economic decisions or actions have a cost associated with them. only economic decisions or actions have a cost associated with them.
The fish in the ocean are what type of market resource Land Capital Entrepreneurial ability Labor
Which of the following scenarios most accurately reflects the concept of scarcity The steak Henry did not buy because he is a vegetarian. The Smith Household produces an average of three bags of trash a week. Sienna enjoys viewing flowers in the city garden during her walk. Brett is a farmer with an open field on which he can plant either soybeans or corn. Bob, the owner of a local deli in town, needs to purchase something that economists would label as "capital" to help him produce sandwiches. Which of the following is an example of capital Ham for the sandwiches
An additional worker A new idea that automates the making of sandwiches A meat slicer to cut ham for sandwiches
In the circular flow model of the market system, households Multiple Choice buy products and resources. sell products and resources. buy products and sell resources. sell products and buy resources.
Use the following graph of the market for milk to answer the question below.
In this market, the equilibrium price is _______ and equilibrium quantity is _______. Multiple Choice $28 per gallon; 150 million gallons $1.00 per gallon; 35 million gallons $1.50 per gallon; 30 million gallons $1.50 per gallon; 28 million gallons
Use the following graph to answer the question below.
At a quantity of 130, marginal benefit equals ______ and marginal cost equals _____. Multiple Choice $1.60, $0.50 $1.00, $1.00 $0.50, $1.60 $1.60, $1.60
Pam sees that the price of bananas has risen in the grocery store. All else equal, she decides to buy more tangerines than she normally purchases. From the information given, you might conclude that:
bananas are a luxury good. tangerines and bananas are complements. tangerines and bananas are substitutes. tangerines are an inferior good.
Use the following graph to answer the question below. At a quantity of 290, marginal benefit equals ______ and marginal cost equals _____. Multiple Choice $0.50, $1.60
$1.60, $0.50 $1.00, $1.00 $1.60, $1.60
When studying human behavior, economists assume rational self-interest. This means that people Multiple Choice make decisions based on some desired outcome. have all the information they need to make a decision. always make the right decisions.
are quite selfish and are not concerned about others.
Use the following market data to answer the question below. Price per Unit Quantity Purchased by Consumer Quantity Sold by Producer $52,000 0 101,800 300 151,600 600 201,400 900 251,200 1,200 301,000 1,500 In the market shown in the table, the equilibrium quantity is Multiple Choice
900. 1,400. 1,600. 1,200.
Use the following market data to answer the question below. Price per Unit Quantity Purchased by Consumer Quantity Sold by Producer $52,000 0 101,800 300 151,600 600 201,400 900 251,200 1,200 301,000 1,500
In the market shown in the table, the marginal cost of 600th unit is
Multiple Choice $10. $20. $25. $15.
Marginal cost can be defined as the change in Multiple Choice cost resulting from one less unit of production.
benefit resulting from one more unit of production. cost resulting from one more unit of production. benefit resulting from one less unit of production.
The problems of inflation and unemployment are Multiple Choice not relevant to the U.S. economy. major topics of microeconomics. major topics of macroeconomics. only relevant to European economies.
Macroeconomics approaches the study of economics from the viewpoint of Multiple Choice governmental units. the operation of specific product and resource markets. individual firms. the entire economy.
Which of the following is a labor resource Multiple Choice a computer programmer
a piece of software used by a firm silicon (sand) used to make computer chips a computer
The circular flow model illustrates Multiple Choice how natural and other resources are created. how money is created by the banking system. the importance of having a central plan for the economy.
the interdependence of businesses and consumers.
The economizing problem is essentially one of deciding how to make the best use of Multiple Choice limited resources to satisfy limited economic wants. unlimited resources to satisfy limited economic wants. unlimited resources to satisfy unlimited economic wants. limited resources to satisfy unlimited economic wants.
Microeconomics is concerned with
Multiple Choice how government debt affects aggregate economic activity. a detailed examination of specific economic units that make up the economic system. the establishing of an overall view of the operation of the aggregate economic system. the aggregate or total levels of income, employment, and output.
In analyzing human decision and action, economists assume that Multiple Choice there are no scarce resources in the economy.
costs are more important than benefits. scarcity is more important than choice. people’s behavior reflects rational self-interest.
The basic truth that underlies the study of economics is the fact that we all face Multiple Choice taxes. risk. scarcity. death.
Markets can: provide unlimited goods and services. make buyers and sellers better off. force producers to make things they do not want to make. force buyers to buy things they do not want to buy.
Use the table below to answer the following question. Output Total Cost 0 $10 1 20 2 28 3 38
4 53 5 73 6 98 The marginal cost of producing 3 units of output is Multiple Choice $28. $0. $10. $38.
Which of the following is the best synonym for "marginal" in economics
Multiple Choice additional basic minor scarce
Which of the following is not a main function of the entrepreneur Multiple Choice to make routine pricing decisions to make strategic business decisions to assume the risk of economic losses
to innovate
The four factors of production (or types of resources) are Multiple Choice land, labor, capital, and entrepreneurial ability. land, labor, capital, and money. labor, capital, entrepreneurial ability, and money. labor, capital, technology, and entrepreneurial ability.
Which of the following is a land resource Multiple Choice
a machine for detecting earthquakes natural gas an oil drilling rig a farmer
The main function of the entrepreneur is to Multiple Choice create market demand. make routine pricing decisions. purchase capital. innovate.
Use the following graph to answer the question below. The price where marginal benefit equals marginal cost is
Multiple Choice $1.60. $1.60. $0.50. $1.00.
In the resource market Multiple Choice
households buy resources from businesses. businesses borrow financial capital from households. households sell resources to businesses. businesses sell services to households.
The concept of a market is a Multiple Choice store. location where buyers and sellers meet to negotiate prices and determine quantities traded. place where sellers increase their wealth.
group of buyers and sellers of a good or service.
The table below represents the demand for bottles of sunscreen at Daytona Beach on a sunny June day. Demand for Sunscreen Price (dollars) Quantity of Sunscreen Demanded (bottles) $47,200 6 6,800 8 6,400 106,000 125,600 If the price of a bottle of sunscreen is $8, what will be the quantity demanded
6,000 bottles 1,600 bottles 8,000 bottles 6,400 bottles
Marcus budgets $120 a week for groceries. When the price of all food goes up by 10% he buys less salmon. This can best be explained by: diminishing marginal utility. the substitution effect. the income effect. a change in income.
Which of the following scenarios is an example of a person interacting outside of a market Mark places his comic book collection up for sale on eBay. Young buys fresh radishes at the local farmers’ market. Melissa votes for her favorite performer at a local talent show. Isabella agrees to fix Miguel’s sink if Miguel paints Isabella’s porch.
Tastes and preferences generally do not change for goods or services in markets. False True
When economists speak of "demand" in a particular market, they refer to Multiple Choice the whole demand curve or schedule. how much of an item buyers want to buy at a given price. one point on the demand curve. one price-quantity combination on the demand schedule.
In understanding and analyzing "demand," we focus on how much of a product the buyers are Multiple Choice
willing and able to buy at different prices. actually buying now and in the recent past at various prices. willing and wanting to buy at different prices. willing and able to buy with their given income.
The most important purpose of a market is to Multiple Choice bring buyers and sellers together so they can trade. bring buyers and sellers together so they can argue. bring buyers and sellers together so they can barter.
increase the sellers’ wealth.
An increase in the demand for music downloads indicates that more music downloads are Multiple Choice demanded because sellers are selling more music downloads. demanded even if prices of music downloads stay the same. demanded because sellers are putting music downloads on sale. demanded because music download prices have decreased.
All else held constant, an increase in the price of tablets will result in a Multiple Choice leftward shift of the demand curve for tablets. movement up and to the left along the demand curve for tablets. rightward shift of the demand curve for tablets. decrease in the demand for tablets.
When economists say that the demand for a product has decreased, they mean that Multiple Choice
the product has become more expensive and thus consumers are buying less of it. consumers are now willing and able to buy less of this product at each possible price. the demand curve has shifted to the right. the product has become particularly scarce for some reason.
When the price of a product increases, consumers shift their purchases to other products whose prices are now relatively lower. This statement describes Multiple Choice the income effect. the rationing function of prices.
the substitution effect. an inferior good.
Who determines the price and quantity traded in a market Multiple Choice prices and quantities traded are not generally determined in markets buyers sellers buyers and sellers
Prices usually allocate resources efficiently because they allocate Multiple Choice consumption to the highest cost of good or service. consumption to the lowest value good or service. resources to the highest value good or service. resources to the lowest value good or service.
If the price of Pepsi decreases, all else held constant, then we’d expect to see a consequent shift of the demand curve for
Multiple Choice Coke to the left. Pepsi to the left. Pepsi to the right. Coke to the right.
In a market, buyers want to pay the _____ possible price and sellers want to charge the _____ possible price. Multiple Choice lowest, lowest lowest, highest highest, highest
highest, lowest
The horizontal axis of a graph that shows a market demand curve indicates the Multiple Choice different prices at which a product can be purchased. various quantities of a product at which the market will be cleared. quantities that consumers are willing and able to buy at various prices. number of consumers who are in the market for a product.
For most products, purchases tend to fall with decreases in consumers' incomes. Such products are known as Multiple Choice average goods. direct goods. normal goods. inferior goods.
All else held constant, the law of demand suggests that as Multiple Choice
the price of tablets decreases, the quantity of tablets demanded will decrease. income increases, the quantity of tablets demanded will increase. the price of tablets decreases, the quantity of tablets demanded will increase. the demand for tablets increases, the price of tablets will increase.
The law of demand states that, all else held constant, Multiple Choice price and quantity demanded are directly related. consumers will buy more of a product at high prices than at low prices.
the larger the number of buyers in a market, the lower the product price will be. price and quantity demanded are inversely related.
If product Y is an inferior good, a decrease in consumer incomes will Multiple Choice make buyers want to buy less of product Y. shift the demand curve for product Y to the right. shift the demand curve for product Y to the left. not affect the sales of product Y.
In order to derive a market demand curve from individuals’ demand curves, we add up the Multiple Choice various individuals’ quantities demanded at each price. total number of buyers in the market at each time period. various prices that each buyer is willing and able to pay. incomes of all buyers, assuming that their tastes remain constant.
The demand schedule for a product shows the relationship between how much of the product buyers are willing and able to buy and the Multiple Choice product’s price. buyers’ incomes. time period, say, from one month to the next. cost of producing the product.
In moving along a demand curve, which of the following is not held constant Multiple Choice
price expectations the price of the product for which the demand curve is relevant people's tastes and preferences consumer incomes
All else being equal, if the law of supply states that as the price of a good, service, or resource rises Multiple Choice the quantity demanded will decrease, which explains the shape of the supply curve.
the quantity demanded will increase, which explains the shape of the supply curve. the quantity supplied will increase, which explains the shape of the supply curve. the quantity supplied will decrease, which explains the shape of the supply curve.
Economists use the term "demand" to refer to Multiple Choice a particular price-quantity combination on a stable demand curve. a schedule of various combinations of market prices and quantities demanded.
an upsloping line on a graph that relates consumer purchases and product price. the total amount spent on a particular commodity over a fixed time period.
Imagine that the market supply of peaches comes from Georgia (GA) and South Carolina (SC). The supply schedule below shows the quantity of peaches supplied in each state at each price. Individual and Market Supply of Peaches Quantity of Peaches Supplied (pounds) Price (dollars per pound) GA SC Market $10 20,000 18,000 38,000 8 16,000 15,000 31,000 6 12,000 12,000 24,000 4 8,000 9,000 17,000 2 4,000 6,000 10,000
Instructions: Enter your answers as a whole number. a. In the table, complete the column labeled “Market.� b. How many pounds of peaches will be supplied to the market when the price is $6 per pound 24,000 pounds
Which of the following scenarios would likely shift the supply of cars to the left (decrease in supply) Automobile workers become more productive. The price of cars decreases. The price of steel and aluminum increase.
The price of automotive paint decreases.
Use the figure below to answer the following question.
An increase in price, all else held constant, would cause a change from Multiple Choice point 4 to point 5. point 5 to point 1. point 3 to point 4. point 1 to point 3.
In order to derive the market supply curve from individual supply curves, we add up the Multiple Choice total number of sellers in the market at a given time. various quantities that individual sellers are willing and able to supply at different prices. costs that all individual sellers incur in producing the product. various prices that individual sellers are charging for the quantities of the product available.
Which of the following statements is true about supply Multiple Choice As price decreases, producers are willing and able to put more of the good on the market for sale. As price increases, producers are willing and able to put more of the good on the market for sale. There is an inverse relationship between price and quantity supplied. Supply refers to the amount of inventory that sellers have in their warehouses.
Which of the following scenarios would likely shift the supply curve for potatoes to the right (increase in supply)
Potato growers expect the price of potatoes to be lower this year than last year. A new harvester enables farmers to bring in ripe potatoes twice as fast as they did before. Teenagers in potato-farming towns leave to go to college. The price of fertilizer increases.
Use the figure below to answer the following question. The diagram shows three supply curves for apples. Which of the following would cause the supply of apples to shift from S1 to S3 Multiple Choice
a decrease in the price of resources used to produce apples a decrease in the price of apples in the market a decrease in the number of apple farmers an increase in the number of apple farmers
Use the figure below to answer the following question.
The diagram shows three supply curves for cars today. Which of the following would cause the supply of cars to shift from S1 to S2 Multiple Choice expectations of lower car prices in the future
a decrease in the number of car producers an increase in the price of cars in the market expectations of higher car prices in the future
Use the figure below to answer the following question. The figure shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S2 Multiple Choice an increase in the price of water an increase in the price of wheat a new tax on wheat production
a decrease in the price of water
When economists say that the supply for a product has decreased, they mean that the Multiple Choice supply curve has shifted to the right. product has become more expensive and thus consumers are buying less of it. supply curve has shifted to the left. product has become particularly abundant for some reason.
An increase in the supply of music downloads indicates that more music downloads will be Multiple Choice demanded, because sellers are putting music downloads on sale. supplied, because music download prices have decreased. demanded, because sellers are selling more music downloads. supplied, even if prices of music downloads stayed the same.
Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the quantity of wheat supplied to increase from point a to point b Multiple Choice a decrease in the price of wheat a subsidy for wheat production a tax on wheat production an increase in the price of wheat
Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S2 Multiple Choice a tax on wheat production a decrease in the price of wheat a subsidy for wheat production
an increase in the price of wheat
The vertical axis of a graph that shows a market supply curve indicates the Multiple Choice
number of sellers who are in the market for this product. various quantities of output at which the market will be cleared. cost of the amount of output produced. prices at which firms would be willing and able to sell their different products.
Use the figure below to answer the following question. The figure above shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S2 Multiple Choice
a subsidy for wheat production an increase in the price of wheat a decrease in the price of wheat a tax on wheat production
Which one of the following is not assumed to be constant when the supply curve for a product is drawn Multiple Choice price of the product number of producers price of inputs used to make the product
state of technology
Use the figure below to answer the following question. The figure above shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S2 Multiple Choice a decrease in consumer incomes, assuming wheat is a normal good a change in consumer tastes away from wheat bread the development of a more effective insecticide against cutworms
an increase in the price of fertilizer
Use the figure below to answer the following question.
The figure shows three supply curves for apples. If you observe the supply of apples shift from S1 to S3, which of the following could be responsible for this shift Multiple Choice
The producers of apples now must pay a tax. Apple production has increased. The producers of apples now receive a subsidy.
Apple producers are willing to sell more at every price.
Samantha needs to purchase something that economists would label as "labor" to help her produce court documents for her law firm. Which of the following is an example of labor A stenographer who can type courtroom proceedings A stenography machine to type courtroom proceedings Filing cabinets to store the typed courtroom documents The ability to see that organizing courtroom documents is an unfilled market need
Use the figure below to answer the following question. The figure above shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S3 Multiple Choice a subsidy for wheat production a decrease in the price of wheat a tax on wheat production an increase in the price of wheat
Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the quantity of wheat supplied to decrease from point b to point a Multiple Choice an increase in the price of wheat a tax on wheat production a decrease in the price of wheat a subsidy for wheat production
In understanding and analyzing "market supply," we focus on how much all firms Multiple Choice
have sold in the recent past at various prices. want to supply at a given price. are willing and able to supply at different prices. will supply in the future at various prices.
All else being equal, if the price of a product decreases, we would expect Multiple Choice quantity supplied to decrease. supply to decrease. demand to increase. quantity supplied to increase.
When economists say that the supply for a product has increased, they mean that the Multiple Choice product has become particularly scarce for some reason. supply curve has shifted to the left. product has become more expensive and thus consumers are buying less of it. supply curve has shifted to the right.
Use the figure below to answer the following question.
The diagram shows three supply curves for apples today. Which of the following would cause the current supply of apples to shift from S1 to S3 Multiple Choice a decrease in the price of apples in the market an increase in the number of corn farmers expectations of lower apple prices in the future expectations of higher apple prices in the future
A recurring theme in economics is that people Multiple Choice
can increase resources by limiting their economic wants. have limited economic wants and limited resources. have unlimited resources but limited economic wants. have unlimited economic wants but limited resources.
Which of the following can best be characterized as a subject of macroeconomics An examination of how much of a particular good gets produced
An examination of inflation An examination of consumer behavior An examination of where goods come from
Which of the following can best be characterized as a subject of microeconomics An examination of how much of a particular good gets produced An examination of inflation An examination of an economy’s overall level of production An examination of a country's imports and exports