ECO 204 Week 1 Quiz 100% correct

 1.	Question :	Microeconomics might include the study of

 	Student Answer:	 	  how a plumber's wage is determined.

 			  the gross national product.

 			  microorganisms.

 			  inflation.

 			  other countries.



 	Points Received:	1 of 1
 	Comments:	



Question 2.	Question :	When economists make the assumption that wants are unlimited, they mean that most people

 	Student Answer:	 	  want more of everything.

 			  are satisfied with what they have.

 		 	  want more of some goods, even if they don't want more of everything.

 			  don't care what they have.

 			  are greedy.



 	Points Received:	0 of 1
 	Comments:	



Question 3.	Question :	Sales of bananas have dropped from 100,000 pounds to 75,000 pounds per day because a freeze resulted in a smaller supply. In the process, the average price of a pound of bananas has risen from $0.80 to $1.00. Which of the following is most likely true?

 	Student Answer:		  The demand for bananas has increased because of the increase in price.

 		 	  The demand for ice cream (used in banana splits) is likely to decrease.

 			  The price of tapes will rise about 25 percent.

 			  The total revenue (P times Q) from sales has risen.

 			  The quantity demanded of ice cream will increase.



 	Points Received:	1 of 1
 	Comments:	



Question 4.	Question :	Capital consists of

 	Student Answer:		  the assets of a firm.

 			  the assets of the government.

 			  the assets of upper-income groups.

 		 	  aids to production created by humans.

 			  stocks and bonds.



 	Points Received:	1 of 1
 	Comments:	



Question 5.	Question :	Macroeconomics is the study of

 	Student Answer:		  individuals in an economy.

 			  anything large.

 			  the interaction of consumers and producers in markets for particular goods and services.
 		 	  the overall price level and the levels of unemployment and output.

 			  the small aspects of large entities.



 	Points Received:	1 of 1
 	Comments:	



Question 6.	Question :	In what kind of economy is a central planning board or commission typically used to answer the basic economic questions?

 	Student Answer:		  Traditional

 			  Supply

 		 	  Command

 			  Market



 	Points Received:	1 of 1
 	Comments:	



Question 7.	Question :	Demand for a good will always rise when

 	Student Answer:	 	  the price of a complementary good falls.

 			  the price of a substitute good falls.

 			  tastes change.

 			  incomes decrease.

 		 	  the price of the good falls.



 	Points Received:	0 of 1
 	Comments:	



Question 8.	Question :	All but which one of the following could shift the demand curve?

 	Student Answer:	 	  A shift of the supply curve

 			  A rise in income

 			  A change in the price of substitutes

 			  An increase in the size of the age group buying that good

 			  A successful advertising campaign which convinces people that they want more of this good


 	Points Received:	1 of 1
 	Comments:	



Question 9.	Question :	If there is a need to increase the quantity and supply of oil, the most effective way to get it quickly is to

 	Student Answer:		  improve technology.

 		 	  reduce the prices of the resources that produce oil.

 		 	  increase the price of oil.

 			  put a limit on the price of oil.

 			  ban imports.



 	Points Received:	0 of 1
 	Comments:	



Question 10.	Question :	Which of the following is true of scarcity?

 	Student Answer:		  It is a basic problem of microeconomics, not macroeconomics.

 			  It applies to raw materials; manufactured goods are not scarce.

 		 	  It affects all countries.

 			  It affects only poor nations.

 			  It is a basic problem of macroeconomics, not microeconomics.