ECO 204 Week 1 Quiz | Assignment Help | Ashford University
- ashford university / ECO 204
- 28 Feb 2020
- Price: $5
- Other / Other
ECO 204 Week 1 Quiz | Assignment Help | Ashford University
Question 1
According to economic theory, people are forced to make choices because of
__________.
o Pressure to conform
o Legislation
o Competition
o Scarcity
Question 2
Which of the following is the study of “what is” rather than “what ought to be”?
o Institutionalism
o Subjectivism
o Positive theory
o Normative theory
Question 3
What is the focus of macroeconomics?
o The interaction between producers and consumers of a particular service
o The behavior of variables that describe the whole economy
o The cost and price of anything that is abundant
o The small details of large entities
Question 4
What government function or functions promote price steadiness and full employment?
o Both allocation and redistribution
o Stabilization
o Allocation
o Both allocation and stabilization
Question 5
If left alone, a market-directed economy will __________.
o Avoid the production problems encountered in other economies
o Invariably provide the correct economic choices
o Provide the correct economic choices in many but not all cases
o Generally protect consumers from monopoly
Question 6
Assume that Indiana levies a tax on gasoline and uses the proceeds to repair roads in low-income areas. Which government function(s) is (are) being carried out?
o Both allocation and redistribution
o Both allocation and stabilization
o Stabilization
o National defense
Question 7
All but which of the following factors could shift the supply curve for bicycles?
o An increase in the price of bicycle
o A new, cheaper way of producing bicycles
o A union contract that raises the cost of bicycle labor
o An increase in the price of aluminum used in bicycles
Question 8
What does an economist suggest that efficient allocation of resources by the market means?
o The products desired by a society are produced.
o Producers determine what to produce, and consumers buy it.
o Every individual who wants a product gets it.
o Adam Smith’s “invisible hand” has been circumvented.
Question 9
When a price changes, one should expect a change in __________.
o Demand
o New technology
o Supply
o Quantity supplied
Question 10
Following economic theory, demand for a good will always rise when __________.
o The price of a substitute good falls
o The price of a complementary good falls
o The price of the good falls
o The price of all goods falls
USA 
India