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 Individual economic units
C Foreign exchange markets
D Money and money markets
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 A measure of the cost of natural resources
B The purchase price of a productive asset
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 quantity demanded
C An increase in demand
D A decrease in demand
Question #5
A labor
B natural resources
C capital
D efficient production
Question #6
A an invisible hand
B a visible hand
C the labor theory of value
D spontaneous order
Question #7
A Quantity demanded will equal quantity supplied.
B There will be more than enough output to satisfy consumers.
C Firms will have more than enough buyers for their output.
D The supply curve and the demand curve do not intersect.
Question #8
A demand decreases
B quantity demanded increases
C quantity demanded decreases
D demand increases
Question #9
A Exactly duplicate an economic situation
B Explain an economic relationship
C Help students
D Insure an exact result
Question #10
A An increase in the demand for gasoline and surpluses of gasoline
B A decrease in the demand for gasoline and surpluses of gasoline
C A decrease in the demand for gasoline and shortages 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 increase
B The demand for Coke to decrease
C The supply of Coke to increase
D The supply of Coke to decrease
Question #14
A The market is in equilibrium.
B Quantity demanded is less than quantity supplied.
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 increases.
C As the price increases, quantity demanded remains constant.
D As the price decreases, quantity demanded decreases.
Question #17
A Tastes and preferences
B Income level
C The price of the good
D The price of substitute goods
Question #18
A opportunity cost
B preferences
C economic efficiency
D choice
Question #19
A opportunity costs
B prices of goods
C wages
D government subsides
Question #20
A It is technically impossible to grow potatoes in Florida or oranges in Idaho.
B Florida has a comparative advantage in oranges and Idaho has a comparative advantage in potatoes.
C There is no demand for oranges in Idaho.
D Consumers prefer locally produced food.
Question #21
A capital and labor
B money and capital
C labor and investment
D money and labor
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 Shift the demand curve
B Lead to more uniform goods being produced
C Result in a healthier choice
D Shift the demand curve to the right
Question #24
A A relationship between price and income
B A relationship between quantity and quality
C A relationship between price and quality
D A relationship between price and quantity
Question #25
A a relative statement
B a positive statement
C a normative statement
D an opinion
Question #26
A An increase in income, resulting in decreased purchases of French fries
B An increase in income, resulting in increased purchases of Big Macs
C The price of Big Macs increasing, causing consumers to buy more Whoppers
D Increased purchases of Big Macs as the price of Big Macs decreases
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 efficiency; facts
B efficiency; opinions
C fairness; facts
D fairness; opinions
Question #30
A Centralized control through hierarchy
B Coordination through hierarchy
C Coordination through spontaneous order
D Centralized control through spontaneous order
Question #31
A Willingness to purchase goods
B The willingness and ability to purchase goods
C The ability to purchase goods
D The numerical utility
Question #32
A How businesses can make profits
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 society uses its scarce resources to satisfy its unlimited desires
Question #33
A stocks and bonds
B equipment
C money
D all of the above
Question #34
A The price of her airline ticket
B The rent on her apartment while she is away
C The cost of hiring a dog-walking service for her beagle, Smokey
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 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 government should commit to reducing income inequality.
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 national unemployment rate in January of this year was 5.5%.
Question #39
A A change in input prices
B A change in price
C A change in technology
D A change in expectations
Question #40
A True
B False
