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 Foreign exchange markets
B Individual economic units
C Money and money markets
D Banks and the U.S. government
Question #2
A They both involve a movement down along a fixed demand curve.
B They both involve a change in the willingness or ability to buy.
C They are impacted by a change in the price of the good.
D They both involve a shift of the demand curve to the right.
Question #3
A The cost of capital
B A measure of the cost of natural resources
C The purchase price of a productive asset
D The value of the next-best option not taken
Question #4
A An increase in quantity demanded
B An increase in demand
C A decrease in quantity demanded
D A decrease in demand
Question #5
A capital
B efficient production
C natural resources
D labor
Question #6
A spontaneous order
B a visible hand
C the labor theory of value
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 There will be more than enough output to satisfy consumers.
D Firms will have more than enough buyers for their output.
Question #8
A demand decreases
B quantity demanded increases
C demand increases
D quantity demanded decreases
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 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 shortages of gasoline
Question #12
A Opportunity cost is the cost of what is given up.
B Comparative advantage can be used in the analysis of trade.
C The three factors in economics are labor, natural resources, and capital.
D Normative economics is mainly about facts.
Question #13
A The supply of Coke to increase
B The demand for Coke to decrease
C The demand for Coke to increase
D The supply of Coke to decrease
Question #14
A The market is in equilibrium.
B Quantity demanded and quantity supplied are equal.
C Quantity demanded is less than quantity supplied.
D Quantity demanded is more than quantity supplied.
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 Tastes and preferences
B Income level
C The price of substitute goods
D The price of the good
Question #18
A preferences
B choice
C opportunity cost
D economic efficiency
Question #19
A prices of goods
B government subsides
C wages
D opportunity costs
Question #20
A There is no demand for oranges in Idaho.
B It is technically impossible to grow potatoes in Florida or oranges in Idaho.
C Consumers prefer locally produced food.
D Florida has a comparative advantage in oranges and Idaho has a comparative advantage in potatoes.
Question #21
A money and labor
B capital and labor
C money and capital
D labor and investment
Question #22
A A representation of the relationship between price and income.
B A representation of the relationship between quantity and preferences
C A representation of the relationship between price and quantity of the goods a seller will supply
D A representation of the relationship between quality and quantity of the goods the seller is willing to sell.
Question #23
A Lead to more uniform goods being produced
B Shift the demand curve to the right
C Shift the demand curve
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 quantity
D A relationship between price and quality
Question #25
A an opinion
B a normative statement
C a positive statement
D a relative 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 Increased purchases of Big Macs as the price of Big Macs decreases
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 demand curve is upward sloping.
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; opinions
D fairness; facts
Question #30
A Coordination through spontaneous order
B Centralized control through hierarchy
C Centralized control through spontaneous order
D Coordination through hierarchy
Question #31
A The ability to purchase goods
B The willingness and 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 the allocation of income among different sectors of the economy compares
C How the government controls the economy and how people earn a living
D How businesses can make profits
Question #33
A money
B equipment
C stocks and bonds
D all of the above
Question #34
A The price of her airline ticket
B The price of the thank you gift she buys for her friend who checked on her apartment while she was away
C The rent on her apartment while she is away
D The cost of hiring a dog-walking service for her beagle, Smokey
Question #37
A Economics is the study of the choices people make.
B Economics is the study of the individual.
C Economics is the study of the infinite supply of goods.
D Economics is defined as a natural science.
Question #38
A The government should commit to reducing income inequality.
B The national unemployment rate in January of this year was 5.5%.
C The inflation rate next year will be less than 3%.
D A reduction in the government deficit by 1% will make interest rates decrease 1%.
Question #39
A A change in price
B A change in expectations
C A change in technology
D A change in input prices
Question #40
A False
B True
