Economics Chapter 1 Am Even Though Many Customers Plan Arriving

Unlock access to all the studying documents.

View Full Document

186. Multiple Choice: Which of the following principles und...

Question Which of the following principles underlies the gains from trade?

Answer Resources are scarce.

187. Multiple Choice: The federal government regulates how ...

Question The federal government regulates how much carbon dioxide a factory can emit.

This statement best represents this economic concept:

Answer Resources are scarce.

188. Multiple Choice: All children have to be immunized aga…

Question All children have to be immunized against polio, measles, mumps, and other

diseases. If you don’t have enough money to pay for the immunizations, they will

be provided free at the county health clinic. This statement best represents this

economic concept:

Answer People usually exploit opportunities to make themselves better off.

Points: 0

189. Multiple Choice: The government of a small town has de…

Question The government of a small town has decided to ban smoking in all restaurants,

stores, and government offices. This is an example of which principle?

Answer One person’s spending is another person’s income.

190. Multiple Choice: I know when I shop at the local groce…

Question I know when I shop at the local grocery store, I am helping my community. This

statement best represents this economic concept:

Answer People usually exploit opportunities to make themselves better off.

191. Multiple Choice: Owen had a typewriter business but he…

Question Owen had a typewriter business but he went out of business because no one buys

typewriters anymore. This statement best represents this economic concept:

Answer Resources are scarce.

192. Multiple Choice: During the Great Depression, consumer…

Question

Points: 0

During the Great Depression, consumers and producers in the United States

dramatically reduced their spending as compared to the quantity of goods and

services available at the time. This statement best represents this economic

concept:

Answer Resources are scarce.

193. Multiple Choice: When people want more goods and servi...

Question When people want more goods and services than are available, the economy

undergoes inflation. This statement best represents this economic concept:

Answer Resources are scarce.

194. Multiple Choice: When someone says resources are scarc…

Question When someone says resources are scarce, this suggests that:

Answer lower-income individuals must be especially careful about the choices they

make.

195. Multiple Choice: One day, Martha wakes up and in frust...

Points: 0

Question One day, Martha wakes up and in frustration yells, “Decisions, decisions,

decisions! Why do I have to make decisions about everything?” Martha‘s

frustrations stem from the fact that:

196. Multiple Choice: Alison is offered two jobs: one pays ...

Question Alison is offered two jobs: one pays a salary of $45,000 per year and offers three

weeks of vacation, while the other offer provides two weeks of vacation and a salary

of $54,000. What is the opportunity cost for Alison if she chooses the job offer of

$54,000?

Answer $45,000 plus the three weeks of vacation

197. Multiple Choice: Katherine has a physics exam tomorrow…

Question Katherine has a physics exam tomorrow. However, a free lecture by one of her

favorite authors is taking place this evening. Katherine decides to attend the lecture

instead of studying for her exam. Which is a correct statement?

Answer Katherine‘s opportunity cost is the time spent listening to the lecture.

198. Multiple Choice: Mr. Freezee operates a fleet of ice c…

Question

Points: 0

Mr. Freezee operates a fleet of ice cream trucks that drive around neighborhoods

selling ice cream. He is trying to decide whether he should buy another ice cream

truck to add to his fleet. He determines that one more truck will add $750 to his

revenue but that the truck will also increase his costs by $1,000. Based on

marginal analysis, Mr. Freezee decides:

199. Multiple Choice: Julie is getting ready for final exam…

Question Julie is getting ready for final exams. She has three exams during the first three

days of the exam period. To prepare, she has outlined a schedule that includes

reviewing for her first exam on one day, her next exam on the following day, and

her third exam on the third day. On each day, she has also allocated some time

when she can watch TV or basically do nothing. Which is the best explanation for

why Julie provides some time for leisure?

Answer Julie is not that smart and cannot study that long.

200. Multiple Choice: A popular train station has free park...

Question A popular train station has free parking for commuters who take the train. This

often results in many people being unable to find a parking spot and missing their

train. Which of the following plans would most likely help to solve this parking

problem?

Answer All commuters are automatically given a parking pass along with their ticket.

Points: 0

201. Multiple Choice: A bank offers two compensation plans …

Question A bank offers two compensation plans to its tellers. Plan A provides an hourly

wage of $12. Plan B offers $10 per hour plus additional compensation if customers

person would:

202. Multiple Choice: Beth and Alice decide to trade servic...

Question Beth and Alice decide to trade services. Beth promises to do Alice’s taxes, and in

exchange, Alice will create several spreadsheets for Beth’s household budget. This

mutual agreement of trade will most likely:

203. Multiple Choice: Overall, trade between China and the ...

Question Overall, trade between China and the United States will:

Answer benefit the United States more than China.

204. Multiple Choice: When a market is in equilibrium,

Question When a market is in equilibrium,

Answer a person could do better if he or she did something different.

Points: 0

205. Multiple Choice: If an economy is efficient, this means:

Question If an economy is efficient, this means:

Answer all goods are produced at their maximum quantities.

206. Multiple Choice: After a great holiday season when it …

Question After a great holiday season when it opened its doors for business regularly at 6

A.M., a local retail store decides to continue to open at 6 A.M., even though many

customers plan on arriving later to do their shopping. Such a plan by the retail store

is:

Answer efficient, since it worked previously.

207. Multiple Choice: Suppose a local community decided to …

Question Suppose a local community decided to give all of its citizens over age 60 a parking

pass that would enable them to park in the very front of parking lots. For people

over 60, this policy is:

Answer equitable and efficient, since it applies to all citizens over 60.

Points: 0

208. Multiple Choice: The provision of disabled-parking pas...

Question The provision of disabled-parking passes to those with disabilities often requires

that more than enough spaces be available for those with disabilities. As a result,

many of these spaces are vacant quite often when they could be used by able-

bodied individuals. Such a situation illustrates the:

209. Multiple Choice: The existence of government intervent...

Question The existence of government intervention often suggests that:

210. Multiple Choice: Suppose small business owners decide …

Question Suppose small business owners decide to spend less. How will this affect an

economy?

Answer It will have no impact, since this group makes up a small portion of any

economy.

Points: 0

211. Multiple Choice: People who live in large cities decid…

Question People who live in large cities decide to spend less in their day-to-day activities. As

a result, this will most likely lead to:

212. Multiple Choice: Too little spending in an economy oft...

Question Too little spending in an economy often leads to:

213. Multiple Choice: If government decided to increase tax...

Question If government decided to increase taxes or decrease its spending, most likely this

was to correct:

214. Essay: Many college freshmen describe themse…

Question Many college freshmen describe themselves as “pre-med,” but a very small

percentage of these freshmen will ever attend medical school. After the first course

in biology or chemistry, many decide to major in something other than the natural

sciences. Which of the 12 principles is at work here?

Answer

Points: 0

215. Essay: A college student stays up late writi...

Question A college student stays up late writing a history paper and as a result sleeps

through her morning economics class. What is the cost of sleeping through the

class?

216. Essay: A college student waits in line for h…

Question A college student waits in line for hours to purchase a ticket to the Rose Bowl, but

an attorney does not. Rather than spend hours in line, he purchases a much more

expensive ticket through a ticket broker. Why?

217. Essay: A two-year-old child is eating raisin...

Question A two-year-old child is eating raisins one at a time from a large box. Even though

the child doesn’t understand formal economic theory, he knows when to stop

eating because he is full. Describe how this child has already mastered marginal

analysis.

218. Essay: An apartment complex included a fixed…

Question An apartment complex included a fixed price of water in the monthly rent. One day

the city decided to attach a water meter to each individual apartment and charge

the tenant for actual water usage. As a result, water usage in the apartment

complex went way down. Explain this situation using a basic economic principle.

219. Essay: You and your roommate are taking the ...

Question You and your roommate are taking the same economics class. When it comes to

doing homework assignments, your roommate draws beautifully precise graphs,

while you are an extremely fast typist. Therefore, you and your roommate work on

the assignments together. Which of the 12 principles is at work here?

Points: 0

220. Essay: At most airports there are multiple s…

Question At most airports there are multiple security guards ready to screen passengers,

and their luggage, through the X-ray and metal detector checkpoints. The length of

the wait for each line is about the same. Why?

221. Essay: The most efficient way to dispose of ...

Question The most efficient way to dispose of industrial waste is to dump it in a nearby river

or parcel of land. Why is this illegal?

222. Essay: By early 2008 the U.S. economy was in...

Question By early 2008 the U.S. economy was in a significant downturn. The unemployment

rate began to increase and home prices began to fall. Congress passed a stimulus

package that gave tax rebates to virtually every person who paid taxes in 2007.

Which of the 12 principles is described by this Congressional package?

223. Essay: Some products, like tobacco, are taxe…

Question Some products, like tobacco, are taxed by the government. Why would the

government interfere in a market that if left untaxed would probably move to

equilibrium on its own?

Points: 0