quiz1 Econ101

 1.	Question :
In the goods market:

 	Student Answer:	business produces goods and services and sells them to households and government.


 2.	Question :
Scarcity will always exist because:

 	Student Answer:	incentives that encourage work and reduce human desires cannot keep new wants from developing.

 3.	Question :
Which of the following cannot be determined using a production possibility table?

 	Student Answer:	What combination of outputs is best.


 4.	Question :
A pay-as-you-go pension system is viable as long as:

 	Student Answer:	the relative sizes of generations do not change too much.


 5.	Question :
Which of the following topics is best categorized as a macroeconomic issue?

 	Student Answer:	The effect of an increase in federal spending on the unemployment rate.


 6.	Question :
Maintaining objectivity is easiest in:

 	Student Answer:		 positive economics.


 7.	Question :
The marginal benefit from consuming another unit of a good:

 	Student Answer:	equals the increase in total benefits from consuming the unit.


 8.	Question :
Which of the following would make the impending Social Security problem worse?

 	Student Answer:	 Reducing the age at which one is eligible to receive payments.


 9.	Question :
Evan can grow both roses and carnations in his garden. His production possibility table is given below. If he is currently producing 110 roses, his opportunity cost of producing 40 more roses is:




 	Student Answer:	31 carnations.


 10.	Question :
If a country has a comparative advantage in the production of a good, then its resources are better suited to the production of that good than the resources of other countries.

 	Student Answer:		 True

 11.	Question :
The economic decision rule is to undertake an action only when the marginal benefits of that action are greater than its total costs.

 	Student Answer:		 False


 12.	Question :
Productive efficiency is not achieved at any point inside the production possibility curve.

 	Student Answer:		 True

 13.	Question :
Opportunity cost is the same as marginal cost.

 	Student Answer:		False


 14.	Question :
Debt that is owed to foreigners is called:

 	Student Answer:	external debt.


 15.	Question :
A defining difference between sole proprietorships, partnerships, and corporations is the:

 	Student Answer:	nature of ownership and accountability for each type of business.


 16.	Question :
Suppose you paid $300 to take this economics course, which meets 30 times, for one hour a class, during the course of the semester. Instead of attending class you could have either flipped hamburgers for $8 an hour or waited tables for $5 an hour. Given this information, the opportunity cost of attending each class session is:

 	Student Answer:	$8.


 17.	Question :
An economic force given relatively free reign by society to work through the market is:

 	Student Answer:		 a market force.


 18.	Question :
The distinction between capitalism and socialism is less significant today than it was 20 years ago.

 	Student Answer:		 True

 19.	Question :
Relative to corporations, sole proprietorships are:

 	Student Answer:		 more numerous and smaller in size.


 20.	Question :
Households supply factors of production to business and are paid by business for doing so. The market where this interaction takes place is called the factor market.

 	Student Answer:		 True