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 Foreign exchange markets
B Money and money markets
C Individual economic units
D Banks and the U.S. government
Question #2
A They are impacted by a change in the price of the good.
B They both involve a movement down along a fixed demand curve.
C They both involve a change in the willingness or ability to buy.
D They both involve a shift of the demand curve to the right.
Question #3
A The value of the next-best option not taken
B The cost of capital
C The purchase price of a productive asset
D A measure of the cost of natural resources
Question #4
A An increase in demand
B A decrease in quantity demanded
C A decrease in demand
D An increase in quantity demanded
Question #5
A capital
B efficient production
C natural resources
D labor
Question #6
A a visible hand
B an invisible hand
C spontaneous order
D the labor theory of value
Question #7
A The supply curve and the demand curve do not intersect.
B Quantity demanded will equal quantity supplied.
C There will be more than enough output to satisfy consumers.
D Firms will have more than enough buyers for their output.
Question #8
A quantity demanded decreases
B demand increases
C quantity demanded increases
D demand decreases
Question #9
A Insure an exact result
B Help students
C Explain an economic relationship
D Exactly duplicate an economic situation
Question #10
A An increase in the demand for gasoline and shortages of gasoline
B An increase in the demand for gasoline and surpluses of gasoline
C A decrease in the demand for gasoline and shortages 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 demand for Coke to decrease
B The supply of Coke to decrease
C The supply of Coke to increase
D The demand for Coke to increase
Question #14
A The market is in equilibrium.
B Quantity demanded is more than quantity supplied.
C Quantity demanded is less than quantity supplied.
D Quantity demanded and quantity supplied are equal.
Question #15
A As the price increases, quantity demanded decreases.
B As the price increases, quantity demanded remains constant.
C As the price decreases, quantity demanded decreases.
D As the price increases, quantity demanded increases.
Question #17
A Tastes and preferences
B The price of substitute goods
C Income level
D The price of the good
Question #18
A choice
B preferences
C opportunity cost
D economic efficiency
Question #19
A opportunity costs
B prices of goods
C wages
D government subsides
Question #20
A Consumers prefer locally produced food.
B Florida has a comparative advantage in oranges and Idaho has a comparative advantage in potatoes.
C It is technically impossible to grow potatoes in Florida or oranges in Idaho.
D There is no demand for oranges in Idaho.
Question #21
A capital and labor
B money and labor
C labor and investment
D money and capital
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 quantity of the goods a seller will supply
C A representation of the relationship between quantity and preferences
D A representation of the relationship between price and income.
Question #23
A Shift the demand curve
B Result in a healthier choice
C Shift the demand curve to the right
D Lead to more uniform goods being produced
Question #24
A A relationship between quantity and quality
B A relationship between price and quality
C A relationship between price and income
D A relationship between price and quantity
Question #25
A a positive statement
B a relative statement
C an opinion
D a normative 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 and quality of the good demanded
C An undefined curved line
D A graphical representation of the relationship between price of the good and the quantity demanded
Question #29
Positive economics features discussions of _________ and relies heavily on the analysis of ________.
A fairness; facts
B efficiency; facts
C efficiency; opinions
D fairness; opinions
Question #30
A Centralized control through spontaneous order
B Centralized control through hierarchy
C Coordination through hierarchy
D Coordination through spontaneous order
Question #31
A The numerical utility
B Willingness to purchase goods
C The willingness and ability to purchase goods
D The ability to purchase goods
Question #32
A How the allocation of income among different sectors of the economy compares
B How society uses its scarce resources to satisfy its unlimited desires
C How the government controls the economy and how people earn a living
D How businesses can make profits
Question #33
A money
B stocks and bonds
C equipment
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 price of her airline ticket
C The rent on her apartment while she is away
D The cost of hiring a dog-walking service for her beagle, Smokey
Question #37
A Economics is the study of the individual.
B Economics is defined as a natural science.
C Economics is the study of the choices people make.
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 inflation rate next year will be less than 3%.
C A reduction in the government deficit by 1% will make interest rates decrease 1%.
D The government should commit to reducing income inequality.
Question #39
A A change in price
B A change in expectations
C A change in technology
D A change in input prices
Question #40
A False
B True
