User
Bidhut Dhakal
Course
ECON 2301 MACROECONOMICS
Test
Unit 1 Test
Started
5/17/17 6:02 PM
Submitted
5/17/17 7:04 PM
Status
Completed
Attempt Score
90 out of 100 points
Time Elapsed
1 hour, 1 minute out of 1 hour and 15 minutes
• Question 1
2 out of 2 points
Suppose the cost of operating a 100 room hotel for a night is $10,000 and there are 5 empty rooms
for tonight. If the marginal cost of operating one room for one night is $30 and a customer is willing
to pay $60 for the night, the hotel manager should
➢ rent the room because the marginal benefit exceeds the marginal cost.
• Question 2
2 out of 2 points
Candice is planning her activities for a hot summer day. She would like to go to the local swimming
pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the
same time that the pool is open she can only choose one activity. This illustrates the basic principle
that
➢ people face tradeoffs.
• Question 3
2 out of 2 points
Policymakers use taxes
➢ both to raise revenue for public purposes and to influence market outcomes
• Question 4
2 out of 2 points
Senator Jackson argues that replacing the federal income tax with a national sales tax would increase
the level of output. Senator Feldman objects that this policy would benefit the rich at the expense of
the poor.
➢ Senator green argument is primarily about efficiency, Brown argument is about
equality.
• Question 5
2 out of 2 points
When government policies are enacted,
➢ None of the above are correct!
• Question 6
2 out of 2 points
Government policies can change the costs and benefits that people face. Those policies have the
potential to
➢ All
• Question 7
2 out of 2 points
The opportunity cost of an item is
➢ What you give up to get that item
• Question 8
0 out of 2 points
Maureen’s college raises the cost of room and board per semester. This increase raises Maureen’s
opportunity cost of attending college
only if the amount she would have to pay for room and board if she didn’t attend college
rose by less than the increase in the amount her college charges. An increase in opportunity
cost reduces Maureen’s incentive to attend college.
• Question 9
2 out of 2 points
The English word that comes from the Greek word for “one who manages a household” is
➢ Economy
• Question 10
2 out of 2 points
When calculating the cost of college, which of the following should you probably not include?
➢ The cost of rent for your off-campus apartment
• Question 11
0 out of 2 points
Rational people make decisions “at the margin” by comparing
➢ total cost or benefit
• Question 12
2 out of 2 points
Lawrence is a photographer. He has $230 to spend and wants to buy either a flash for his camera or a
new tripod. Both the flash and tripod cost $230, so he can only buy one. This illustrates the principle
that
➢ People face trade-offs.
• Question 13
2 out of 2 points
In most societies, resources are allocated by
➢ The combined actions of millions of households and firms.
• Question 14
2 out of 2 points
In a market economy,
➢ supply and demand determine prices and prices, in turn, allocate the economy’s
