Navigation » List of Schools » West Los Angeles College » Economics » Econ 001 – Principles of Microeconomics » Summer 2019 » Quiz 2
Below are the questions for the exam with the choices of answers:
Question #1
A the greater is the opportunity cost of consumer wants satisfied.
B the opportunity cost of consumer wants satisfied is diminishing.
C every additional missile will reduce consumer goods production by more and more.
Question #2
A the opportunity cost of producing more of something will remain constant.
B some land or labor is more productive in one use than another.
C technology can advance.
Question #3
A some resources are specialized to (more productive in) one use than another.
B with rational resource allocation decisions, the opportunity cost of producing more will rise.
C technology can advance.
Question #4
A since it would be impossible to produce more of one thing without producing less of another.
B since otherwise resources are idle.
C since otherwise output may go to where it is less valued.
Question #5
A the opportunity cost of producing more of something will fall.
B production of different types will compete for limited resources.
C of diminishing returns.
Question #6
A the budget constraint demonstrates diminishing returns.
B the production possibilities model demonstrates diminishing returns.
C the budget constraint depicts an inverse relationship, or a trade-off.
Question #7
A the tastes and preferences of the decision-maker.
B the relative prices of the two goods competing to satisfy wants.
C the size of the budget.
Question #8
A it is best to ignore sunk cost and keep the bed & breakfast operating.
B it is best to keep the bed & breakfast operating because it is profitable.
C it is best to shut down the bed & breakfast since it is taking a loss.
Question #9
A monetary costs.
B sunk costs.
C opportunity costs.
Question #10
A how much utility one more unit of a good will provide.
B the limitation of the budget.
C the prices of the items purchased.
Question #11
A zero monetary cost but a $1000 per month opportunity cost.
B $1000 per month monetary and opportunity cost.
C $500 per month monetary cost but a $1500 per month opportunity cost.
Question #12
A Investing in electricity with photovoltaic cells is a growing trend.
B Installing solar will provide a rate of return on investment of 5%.
C Installing solar will be worth the investment.
Question #13
A I am absolutely positive that there is a better way.
B There is a limit to the income each year to which the FICA tax applies, but that is fair, since there is a limit to social security benefits.
C Social security benefits are not taxed.
Question #14
A a value judgement.
B based upon what can be demonstrated to be true.
C can be shown to be correct or incorrect.
Question #15
A continue with the project provided that the additional electricity is worth more than $32 million.
B continue with the project provided that the additional electricity is worth more than $20 million.
C continue with the project provided that the additional electricity is worth more than $12 million.
Question #16
A Are the total benefits of having a city water supply greater than the total cost?
B Are the benefits of cleaner water greater than the additional costs of the new filtration system?
C Is it worth paying twice as much for the same amount of water?
Question #17
A humankind as a whole.
B strangers.
C close friends and family.
Question #18
A always considering the long-run.
B considering all other people.
C weighing prospective marginal benefits and marginal costs to oneself.
Question #19
A implies that people will always know exactly what they are buying
B assumes that people will always attempt to act in their own self-interest.
C is an assumption that economists make to have a useful model for how decisions are made.
Question #20
A The money spent is worth the boost it gives to corporate image.
B The funds dedicated to this purpose represent a very small share of profits.
C The money will be spent efficiently to cure cancer.