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 Individual economic units
B Money and money markets
C Foreign exchange markets
D Banks and the U.S. government
Question #2
A They both involve a shift of the demand curve to the right.
B They both involve a movement down along a fixed demand curve.
C They are impacted by a change in the price of the good.
D They both involve a change in the willingness or ability to buy.
Question #3
A A measure of the cost of natural resources
B The value of the next-best option not taken
C The purchase price of a productive asset
D The cost of capital
Question #4
A A decrease in demand
B A decrease in quantity demanded
C An increase in demand
D An increase in quantity demanded
Question #5
A efficient production
B natural resources
C labor
D capital
Question #6
A the labor theory of value
B a visible hand
C spontaneous order
D an invisible hand
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 increases
B demand decreases
C quantity demanded decreases
D demand increases
Question #9
A Help students
B Explain an economic relationship
C Insure an exact result
D Exactly duplicate an economic situation
Question #10
A A decrease in the demand for gasoline and shortages of gasoline
B An increase in the demand for gasoline and surpluses of gasoline
C An increase 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 The three factors in economics are labor, natural resources, and capital.
C Comparative advantage can be used in the analysis of trade.
D Opportunity cost is the cost of what is given up.
Question #13
A The supply of Coke to decrease
B The supply of Coke to increase
C The demand for Coke to decrease
D The demand for Coke to increase
Question #14
A Quantity demanded is less than quantity supplied.
B Quantity demanded and quantity supplied are equal.
C Quantity demanded is more than quantity supplied.
D The market is in equilibrium.
Question #15
A As the price increases, quantity demanded remains constant.
B As the price increases, quantity demanded decreases.
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 the good
C The price of substitute goods
D Income level
Question #18
A economic efficiency
B opportunity cost
C choice
D preferences
Question #19
A government subsides
B prices of goods
C wages
D opportunity costs
Question #20
A It is technically impossible to grow potatoes in Florida or oranges in Idaho.
B There is no demand for oranges in Idaho.
C Florida has a comparative advantage in oranges and Idaho has a comparative advantage in potatoes.
D Consumers prefer locally produced food.
Question #21
A labor and investment
B capital and labor
C money and labor
D money and capital
Question #22
A A representation of the relationship between price and quantity of the goods a seller will supply
B A representation of the relationship between price and income.
C A representation of the relationship between quantity and preferences
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
B Shift the demand curve to the right
C Lead to more uniform goods being produced
D Result in a healthier choice
Question #24
A A relationship between quantity and quality
B A relationship between price and income
C A relationship between price and quality
D A relationship between price and quantity
Question #25
A a normative statement
B an opinion
C a positive statement
D a relative statement
Question #26
A An increase in income, resulting in decreased purchases of French fries
B The price of Big Macs increasing, causing consumers to buy more Whoppers
C Increased purchases of Big Macs as the price of Big Macs decreases
D An increase in income, resulting in increased purchases of Big Macs
Question #28
A An undefined curved line
B A graphical representation of the relationship between price and quality of the good demanded
C A demand curve is upward sloping.
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 efficiency; facts
B fairness; opinions
C fairness; facts
D efficiency; 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 willingness and ability to purchase goods
B The ability to purchase goods
C Willingness to purchase goods
D The numerical utility
Question #32
A How society uses its scarce resources to satisfy its unlimited desires
B How businesses can make profits
C How the allocation of income among different sectors of the economy compares
D How the government controls the economy and how people earn a living
Question #33
A stocks and bonds
B money
C equipment
D all of the above
Question #34
A The cost of hiring a dog-walking service for her beagle, Smokey
B The rent on her apartment while she is away
C The price of her airline ticket
D The price of the thank you gift she buys for her friend who checked on her apartment while she was away
Question #37
A Economics is defined as a natural science.
B Economics is the study of the choices people make.
C Economics is the study of the individual.
D Economics is the study of the infinite supply of goods.
Question #38
A The inflation rate next year will be less than 3%.
B A reduction in the government deficit by 1% will make interest rates decrease 1%.
C The national unemployment rate in January of this year was 5.5%.
D The government should commit to reducing income inequality.
Question #39
A A change in technology
B A change in price
C A change in input prices
D A change in expectations
Question #40
A True
B False
