ECO 105 Week 1 Quiz

ECO 105 Week 1 Quiz | Assignment Help | Wilmington University 

Question 1

A market demand schedule for hamburgers would NOT include:

o   vegetarians, who buy no hamburgers.

o   people who eat a cheeseburger every day for lunch.

o   the concept of ceteris paribus.

o   the labor market.

Question 2

A supply schedule illustrates the quantity supplied at:

o   various demand levels.

o   a single selling price.

o   different selling prices.

o   market equilibrium.

Question 3

According to the law of supply, sometimes ______ can lower the quantity supplied.

o   an increased price

o   a market supply curve

o   a market demand curve

o   price negotiations

If you have a goal to earn $2,000, and are paid $10 per hour, it will take you 200 hours to achieve that goal. If your rate increases to $20 per hour, the amount of labor you supply to reach your goal will decrease.

Question 4

China and India have economically prospered recently by introducing:

o   more centralized planning.

o   greater government intervention.

o   a stronger central bank.

o   a more market-based economy.

Question 5

Closed economies generally do ______ open economies, in the long run.

o   slightly better than

o   worse than

o   about the same as

o   at least five times better than

Question 6

Federal taxes have which of the following effects on the economy?

o   If taxes are increased, the economy expands due to a balanced budget.

o   If taxes are decreased, businesses will invest the difference back into the economy.

o   There is no definitive agreement on the effect.

o   Lower federal taxes will cause budget surpluses.

Question 7

From the development of the ______________, technological change has been the critical factor in raising living standards.

o   steam engine

o   iPod

o   bicycle

o   fluorescent light

Question 8

If the quantity demanded increases sharply when the price drops, this illustrates what principle?

o   The law of supply

o   The law of demand

o   The law of the curve

o   Ceteris paribus

Question 9

In a centrally-planned economy, decisions are made by:

o   private businesses.

o   large corporations.

o   low-level government employees.

o   top-level government officials.

Question 10

In economics, satiation means:

o   eventually the marginal value of the good consumed increases.

o   that you are full.

o   eventually the marginal value of the good consumed disappears.

o   that the market price has been attained.

You reach a satiation point when the value of the good consumed no longer has value. There is only so much free coffee one can drink before your body physically rebels.

Question 11

Nuclear power in the United States turned out to be:

o   a boon to the economy.

o   well worth the time and investment.

o   far more expensive and troublesome than expected.

o   a hazard-free source of limitless power.

Expense and technical issues have not made nuclear power a viable alternative energy source so far.

Question 12

One measurement of economic prosperity is:

o   the happiness index.

o   the Gross Domestic Policy.

o   interest rates.

o   the Gross Domestic Product.

See the definition of the Gross Domestic Product.

Question 13

One of the biggest benefits of a market-based economy is:

o   centralized planning.

o   the ability to adapt quickly to change.

o   government regulation.

o   consumer protection policies.

Question 14

Opportunity cost is defined as the value or benefit of the:

o   most expensive item.

o   least expensive item.

o   supply curve.

o   next best alternative.

Question 15

Over the past thirty years, most countries have moved toward:

o   more government regulation of the economy.

o   less government regulation of the economy.

o   planned central economies.

o   closing the economy to imports.

Those countries that have prospered economically generally have leaned toward less government intervention in the economy.

Question 16

Poorer countries started to develop economically when they:

o   focused on becoming net traders.

o   figured out what the rest of the world wanted, and responded.

o   focused on becoming importers.

o   focused on domestic economic regulation.

Developing countries prosper when they export goods and services that solve a need. China and India are two examples of such economies.

 Question 17

Renewable energy sources provide _____% of U.S. needs today.

o   9.4

o   15.4

o   20.4

o   100

See the definition of renewable energy sources.

Question 18

Technological change is generally:

o   very uneven.

o   slow across the board.

o   evenly divided across industries.

o   always manageable by government.

Question 19

The demand curve is the graphical counterpart to the:

o   demand schedule.

o   supply curve.

o   supply schedule.

o   general demand.

The demand curve shows the graphical representation of demand at given prices. By the direction of the curve's shift, it graphically illustrates the economic movement of demand.

Question 20

The demand schedule reports the quantity demanded at:

o   each price.

o   one price.

o   the average of all prices.

o   the supply price.

See the definition of demand schedule.

Question 21

The government provides what type of incentives to the housing industry, in order to promote growth?

o   Tax-deductible interest

o   Strict building codes

o   Direct mortgage lending

o   No-interest loans

Question 22

The influx of inexpensive, reliable cars from Japan in the 1980s forced domestic producers to:

o   Improve the reliability and cost of their cars.

o   Ask for greater import protections.

o   lobby for a closed economy.

o   build larger, more luxurious vehicles.

Question 23

The law of demand:

o   always holds true.

o   is the opposite of the law of supply.

o   works only in large markets.

o   does not always hold true.

Question 24

What could happen if the market price of haircuts went up?

o   Haircutting would be less profitable.

o   Some stylists would work fewer hours.

o   Some salons might close.

o   A hair salon might hire more stylists.

Question 25

What do economists call the concept that "implicitly assumes everything else about the buying situation stays the same, while price changes"?

o   E pluribus unum

o   Caveat emptor

o   Vini, vidi, vici

o   Ceteris paribus

Question 26

When you give up the opportunity to do something else, the value to you of that activity is called:

o   opportunity demand.

o   opportunity cost.

o   market price.

o   equilibrium.

Question 27

Which of the following countries have better retirement benefits and more job security than the United States?

o   France and Germany

o   China and India

o   Canada and Mexico

o   No other countries do

See the definition of government safety nets.

Question 28

Which of the following is not an example of Zero Price?

o   Most cable television plans

o   Unlimited cell-to-cell calling plans

o   Unlimited refills on coffee

o   A hot dog at a stand

 Question 29

Which of the following is not an example of a market?

o   Online video games

o   Airline tickets between New York and Los Angeles

o   The market for pizza in Toledo, Ohio

o   The air we breathe

Question 30

Which of the following is part of the U.S. government's economic safety net?

o   Social Security

o   Blue Cross and Blue Shield

o   Church-affiliated food kitchens

o   National Sisters of the Poor Welfare Agency