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 Money and money markets
C Foreign exchange markets
D Individual economic units
Question #2
A They both involve a shift of the demand curve to the right.
B They are impacted by a change in the price of the good.
C They both involve a movement down along a fixed demand curve.
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 labor
B efficient production
C natural resources
D capital
Question #6
A an invisible hand
B spontaneous order
C the labor theory of value
D a visible hand
Question #7
A The supply curve and the demand curve do not intersect.
B There will be more than enough output to satisfy consumers.
C Firms will have more than enough buyers for their output.
D Quantity demanded will equal quantity supplied.
Question #8
A demand increases
B demand decreases
C quantity demanded increases
D quantity demanded decreases
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 surpluses of gasoline
B An increase in the demand for gasoline and shortages of gasoline
C A decrease in the demand for gasoline and shortages of gasoline
D An increase in the demand for gasoline and surpluses of gasoline
Question #12
A Opportunity cost is the cost of what is given up.
B The three factors in economics are labor, natural resources, and capital.
C Normative economics is mainly about facts.
D Comparative advantage can be used in the analysis of trade.
Question #13
A The supply of Coke to increase
B The demand for Coke to decrease
C The supply of Coke to decrease
D The demand for Coke to increase
Question #14
A Quantity demanded is less than quantity supplied.
B The market is in equilibrium.
C Quantity demanded is more 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 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 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 It is technically impossible to grow potatoes in Florida or oranges in Idaho.
Question #21
A capital and labor
B money and labor
C money and capital
D labor and investment
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 quality and quantity of the goods the seller is willing to sell.
C A representation of the relationship between price and income.
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 to the right
C Result in a healthier choice
D Shift the demand curve
Question #24
A A relationship between price and quality
B A relationship between quantity and quality
C A relationship between price and quantity
D A relationship between price and income
Question #25
A a relative statement
B an opinion
C a positive statement
D a normative statement
Question #26
A The price of Big Macs increasing, causing consumers to buy more Whoppers
B An increase in income, resulting in increased purchases of Big Macs
C An increase in income, resulting in decreased purchases of French fries
D Increased purchases of Big Macs as the price of Big Macs decreases
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 An undefined curved line
D A graphical representation of the relationship between price and quality of the good demanded
Question #29
Positive economics features discussions of _________ and relies heavily on the analysis of ________.
A efficiency; facts
B fairness; opinions
C efficiency; opinions
D fairness; facts
Question #30
A Coordination through spontaneous order
B Centralized control through hierarchy
C Coordination through hierarchy
D Centralized control through spontaneous order
Question #31
A The ability to purchase goods
B The numerical utility
C The willingness and ability to purchase goods
D Willingness to purchase goods
Question #32
A How the government controls the economy and how people earn a living
B How businesses can make profits
C How the allocation of income among different sectors of the economy compares
D How society uses its scarce resources to satisfy its unlimited desires
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 rent on her apartment while she is away
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 the study of the individual.
B Economics is the study of the infinite supply of goods.
C Economics is the study of the choices people make.
D Economics is defined as a natural science.
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 input prices
B A change in technology
C A change in expectations
D A change in price
Question #40
A False
B True
