Navigation » List of Schools » Los Angeles Mission College » Economics » Economics 002- Principles of Economics II » Fall 2022 » Test 1 Ch 1-3
Below are the questions for the exam with the choices of answers:
Question #1
A Banks and the U.S. government
B Individual economic units
C Foreign exchange markets
D Money and money markets
Question #2
A They both involve a change in the willingness or ability to buy.
B They both involve a movement down along a fixed demand curve.
C They are impacted by a change in the price of the good.
D They both involve a shift of the demand curve to the right.
Question #3
A The cost of capital
B The purchase price of a productive asset
C A measure of the cost of natural resources
D The value of the next-best option not taken
Question #4
A An increase in quantity demanded
B An increase in demand
C A decrease in quantity demanded
D A decrease in demand
Question #5
A efficient production
B labor
C natural resources
D capital
Question #6
A the labor theory of value
B a visible hand
C spontaneous order
D an invisible hand
Question #7
A There will be more than enough output to satisfy consumers.
B Quantity demanded will equal quantity supplied.
C The supply curve and the demand curve do not intersect.
D Firms will have more than enough buyers for their output.
Question #8
A quantity demanded decreases
B demand decreases
C quantity demanded increases
D demand increases
Question #9
A Exactly duplicate an economic situation
B Insure an exact result
C Help students
D Explain an economic relationship
Question #10
A An increase in the demand for gasoline and shortages of gasoline
B A decrease in the demand for gasoline and shortages of gasoline
C A decrease in the demand for gasoline and surpluses of gasoline
D An increase in the demand for gasoline and surpluses of gasoline
Question #12
A Normative economics is mainly about facts.
B The three factors in economics are labor, natural resources, and capital.
C Opportunity cost is the cost of what is given up.
D Comparative advantage can be used in the analysis of trade.
Question #13
A The supply of Coke to increase
B The supply of Coke to decrease
C The demand for Coke to increase
D The demand for Coke to decrease
Question #14
A The market is in equilibrium.
B Quantity demanded is more than quantity supplied.
C Quantity demanded and quantity supplied are equal.
D Quantity demanded is less than quantity supplied.
Question #15
A As the price decreases, quantity demanded decreases.
B As the price increases, quantity demanded decreases.
C As the price increases, quantity demanded increases.
D As the price increases, quantity demanded remains constant.
Question #17
A The price of the good
B Income level
C The price of substitute goods
D Tastes and preferences
Question #18
A choice
B opportunity cost
C preferences
D economic efficiency
Question #19
A opportunity costs
B wages
C prices of goods
D government subsides
Question #20
A It is technically impossible to grow potatoes in Florida or oranges in Idaho.
B Consumers prefer locally produced food.
C Florida has a comparative advantage in oranges and Idaho has a comparative advantage in potatoes.
D There is no demand for oranges in Idaho.
Question #21
A money and capital
B capital and labor
C labor and investment
D money and labor
Question #22
A A representation of the relationship between quantity and preferences
B A representation of the relationship between price and quantity of the goods a seller will supply
C A representation of the relationship between price and income.
D A representation of the relationship between quality and quantity of the goods the seller is willing to sell.
Question #23
A Result in a healthier choice
B Shift the demand curve to the right
C Shift the demand curve
D Lead to more uniform goods being produced
Question #24
A A relationship between price and quantity
B A relationship between price and quality
C A relationship between price and income
D A relationship between quantity and quality
Question #25
A an opinion
B a normative statement
C a positive statement
D a relative statement
Question #26
A An increase in income, resulting in increased purchases of Big Macs
B Increased purchases of Big Macs as the price of Big Macs decreases
C An increase in income, resulting in decreased purchases of French fries
D The price of Big Macs increasing, causing consumers to buy more Whoppers
Question #28
A A demand curve is upward sloping.
B A graphical representation of the relationship between price of the good and the quantity demanded
C A graphical representation of the relationship between price and quality of the good demanded
D An undefined curved line
Question #29
Positive economics features discussions of _________ and relies heavily on the analysis of ________.
A efficiency; opinions
B efficiency; facts
C fairness; opinions
D fairness; facts
Question #30
A Coordination through hierarchy
B Coordination through spontaneous order
C Centralized control through hierarchy
D Centralized control through spontaneous order
Question #31
A The numerical utility
B The ability to purchase goods
C The willingness and ability to purchase goods
D Willingness to purchase goods
Question #32
A How the allocation of income among different sectors of the economy compares
B How the government controls the economy and how people earn a living
C How society uses its scarce resources to satisfy its unlimited desires
D How businesses can make profits
Question #33
A equipment
B stocks and bonds
C money
D all of the above
Question #34
A The cost of hiring a dog-walking service for her beagle, Smokey
B The price of her airline ticket
C The rent on her apartment while she is away
D The price of the thank you gift she buys for her friend who checked on her apartment while she was away
Question #37
A Economics is the study of the infinite supply of goods.
B Economics is the study of the choices people make.
C Economics is defined as a natural science.
D Economics is the study of the individual.
Question #38
A The national unemployment rate in January of this year was 5.5%.
B A reduction in the government deficit by 1% will make interest rates decrease 1%.
C The government should commit to reducing income inequality.
D The inflation rate next year will be less than 3%.
Question #39
A A change in price
B A change in input prices
C A change in expectations
D A change in technology
Question #40
A True
B False
