Navigation » List of Schools » Los Angeles Valley College » Economics » Econ 001 – Principles of Economics » Fall 2021 » What is Economics and Why is it Important
Below are the questions for the exam with the choices of answers:
Question #1
A The reintroduction of wolves in Yellowstone was a success in that shortly after reintroduction the wolves were removed from the Endangered Species list.
B The patent for a pharmaceutical drug expired and the drug is now being replicated by a number of other producers.
C Due to an increase in demand for craft beer in Portland, the number of microbreweries has increased.
D The value for ivory has increased leading to an increase in the poaching of African Elephants and a decrease in the African Elephant population.
Question #2
A FALSE
B TRUE
Question #3
A Workers who specialize in certain tasks often learn to produce more quickly and with higher quality.
B Specialization allows businesses to take advantage of economies of scale.
C Specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage.
D Specialization allows workers to experiment with different tasks to see which responsibilities make them happiest at work.
Question #4
A Hawaii’s need for teachers is much higher than current quantity supplied because it is very expensive to live in Hawaii and most individuals cannot afford to live in Hawaii on a teacher’s salary.
B John has a test tomorrow that he must study for, but he also wants to go to a music concert tonight. He doesn’t have time for both.
C A puppy mill was shut down and all of the dogs went to an overcapacity humane society, leading to an increase in the supply of adoptable dogs.
D Each year only a limited amount of the flu vaccine is created.
Question #5
A Due to a continuous drought in Cape Town, South Africa, the amount of water for families is limited.
B Home Depot offered a wage higher than the minimum wage resulting in an influx of job applications.
C Crude oil was in short supply in the 1970s, leading to a quantity demanded of gasoline being greater than the quantity supplied.
D Bee populations are on the decline due to disease, so some farmers have resorted to hand pollination of their fruits and vegetables.
Question #6
A increases output by allowing workers to each perform a wide variety of tasks
B decreases the wage rate by making workers less valuable
C increases output by making labor cheaper relative to capital
D increases output by enabling workers to take advantage of differences in their skills
Question #7
A The ability to create diamonds in a laboratory has flooded the diamond market with cheap diamonds.
B A factory has a large need for highly skilled workers, however the majority of applicants do not have any work experience.
C Fracking in the U.S. has led to the discovery and use of natural gas, resulting in lower energy prices.
D Animal shelters have been experiencing a decreasing demand for kittens, resulting in a decreased adoption price for kittens.
Question #8
A Production would be slowed.
B There would be no increase or decrease in production.
C At first, production would increase, then it would return to the maximum output of 2 guitars a week.
D Production would be increased.
Question #9
A FALSE
B TRUE
Question #10
A Amanda can play a song as many times as she likes with no additional cost to her.
B Because the number of trained doctors is limited, some people cannot find a doctor when they need one.
C Joey has to choose between buying a new motorcycle or buying a small boat, since he cannot afford to buy both.
D A small business owner has to subcontract a portion of work due to lack of time.
Question #11
A assignment
B college degree
C high level of utility
D advantage
Question #12
A Macroeconomists; Microeconomists
B Microeconomists; Macroeconomists
C Macroeconomists; Macroeconomists
D Microeconomists; Microeconomists