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