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