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