ECO 203 Week 1 Quiz | Assignment Help | Ashford University(2020)
- ashford university / ECO 203
- 05 Oct 2020
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ECO 203 Week 1 Quiz | Assignment Help | Ashford University(2020)
Week 1 - Quiz
Question 1
Most modern industrial
countries have a __________ economy.
o
traditional
o
command
o
market
o
mixed
Question 2
If an economist sees
that an inferior good’s price has increased from $1.00 to $1.50 per unit, and
that the income available to purchase that inferior good has increased from
$10,000 to $15,000, the economist will likely conclude that __________.
o
the quantity demanded of the good has
increased
o
10,000 units would be purchased in both
cases
o
the equilibrium quantity will increase,
because both forces have a positive effect
o
the equilibrium quantity will decrease,
because both forces have a negative effect
Question 3
The primary reason that
economists disagree over which economic policies to pursue is that they
__________.
o
make false assumptions
o
use irrelevant models
o
have different values, methods, and
priorities
o
use expired data
Question 4
In economic theory,
demand refers to the various amounts of goods or services that consumers are
willing to buy over a specified time period __________.
o
as their income changes
o
as their tastes change
o
at various prices
o
when prices increase
Question 5
An example of
investment—as defined in economics—would be __________.
o
building a new factory
o
buying 100 shares of Apple stock
o
buying U.S. government bonds
o
using natural resources to produce a
good
Question 6
The measure of the cost
of a particular good in terms of what is given up to produce that good is
called a(n) __________ cost.
o
opportunity
o
fixed
o
necessary
o
marginal
Question 7
The directing function
of prices ensures that __________.
o
consumers and businesses participate in
proper markets
o
prices will always move in the right
direction
o
consumers know how to get correct market
information
o
production will increase for goods with
more intense demands
Question 8
Monetary savings
represents a leakage in the circular flow of an economy because it __________.
o
is income not consumed
o
increases the size of the flow
o
is used to purchase imports
o
is of no use to the economy
Question 9
What does an economist
suggest that efficient allocation of resources by the market means?
o
Every individual who wants a product
gets it.
o
Producers determine what to produce, and
consumers buy it.
o
The products desired by a society are
produced.
o
Adam Smith’s “invisible hand” has been
circumvented.
Question 10
In an economic system,
which of the following is NOT a typical government activity?
o
allocation
o
stabilization
o
redistribution
o
privatization
USA 
India