ECON 201 Week 1 Quiz

ECON 201 Week 1 Quiz | american-public-university-system

Quiz Submissions - Week 1 Quiz (Chapters 1 & 2)

Question 1                         

The branch of economics that examines the impact of choices on aggregates in the economy is:

·         positive economics.

·         normative economics.

·         macroeconomics.

·         microeconomics.

Question 2                         

When we are forced to make choices we are facing the concept of:

·         ceteris paribus.

·         free goods.

·         scarcity.

·         the margin.

Question 3                         

An economic system is the set of rules that define _______ and _______ .

·         resources; prices

·         who gets to vote; when elections will be held

·         market prices; factors of production

·         how an economy's resources are to be owned; how decisions about the resources are to be made

Question 4                         

In a market capitalist economy:

·         factors of production are owned privately and decisions about their use are basically made by individuals.

·         factors of production are owned by the government but decisions about their use are made privately.

·         private ownership exists but decisions about resource allocation are usually made centrally by the government.

·         there is no role for the government.

Question 5         

The branch of economics that examines the choices of consumers and firms is:

·         positive economics.

·         normative economics.

·         macroeconomics.

·         microeconomics.

Question 6                         

Scarcity in economics means:

·         not having sufficient resources to produce all the goods and services we want.

·         the wants of people are limited.

·         there must be poor people in rich countries.

·         economists are clearly not doing their jobs.

Question 7                         

The basic concern of economics is:

·         to keep business firms from losing money.

·         to prove that capitalism is better than socialism.

·         to study the choices people make.

·         to use unlimited resources to produce goods and services to satisfy limited wants.

Question 8                         

Whenever a choice is made:

·         the value of all the other choices that could have been made is called opportunity cost.

·         normative economics is encountered.

·         the problem of "all other things unchanged" results.

·         the opportunity cost of that choice is value of the next best alternative

Question 9                         

Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.

·         unlimited resources; economic systems

·         human interactions; limited resources

·         opportunity costs; choices

·         social behavior; scarcity

Question 10                      

(Exhibit: Production Possibilities Curve-Military and Civilian Goods) A movement from point G to H on Curve 1 would:

·         require giving up military goods in order to get more civilian goods.

·         indicate that, in this economy, there is no scarcity.

·         require giving up civilian goods to get more military goods.

·         require greater efficiency in the production of civilian goods.

Question 11                      

(Exhibit: Production Possibilities Curve-Military and Civilian Goods) If an economy is at point U, and its production possibilities curve is Curve 1, this would indicate that:

·         resources are fully employed.

·         economic growth has taken place.

·         there is inefficiency and/or unemployment.

·         the economy is maximizing its economic objectives.

Question 12                      

(Exhibit: Production Possibilities Curve-Military and Civilian Goods) If the economy is represented by Curve 1, then:

·         point E is unattainable at the present time.

·         point G is superior to point H.

·         point H is superior to point G.

·         factors of production are not being used efficiently.

·         PPS 1

Question 13                      

(Exhibit: Production Possibilities Schedule) If the economy is producing at alternative X, the opportunity cost to it of producing at Y instead of X is _______ units of consumer goods per period.

·         0

·         6

·         8

·         14

Question 14                      

(Exhibit: Production Possibilities Schedule) If an economy is producing at alternative W, the opportunity cost to it of producing at X is _______ unit(s) of consumer goods per period.

Question options:

·         0

·         1

·         4

·         18

Question 15                      

(Exhibit: Production Possibilities Schedule) A move from alternative Y to alternative X would:

Question options:

·         result in greater unemployment.

·         decrease potential growth.

·         increase potential growth.

·         result in greater underemployment.

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