Question 1

Scarcity&#10;A)Can be eradicated with sufficient economic growth.&#10;B)Could be eradicated if we could just eliminate greed.&#10;C)Can never be eradicated&#10;D)Both a. and b. are true

Accepted Answer

Scarcity is a fundamental economic problem due to limited resources and unlimited wants, and it cannot be eradicated.

Question 2

The opportunity cost of attending a college basketball game tonight would increase if:&#10;A)Your friend offers to pay you more for your ticket, because he really wants to go.&#10;B)Your favorite player on the teams is injured and will not play tonight.&#10;C)Your economics TA decides to offer a review session, for which attendance will count 10% of your course grade, at the same time as the game&#10;D)Either a. or c. occurs

Accepted Answer

The opportunity cost increases if either you have a more lucrative alternative (selling the ticket for more money) or a more valuable alternative (attending a review session that affects your grade).

Question 3

The marginal cost of a vacation in Jamaica is $3,000. The marginal benefit to Jordan of a vacation in Jamaica is $3,500.&#10;A)According to the rule of rational choice, Jordan should choose not to vacation in Jamaica at this time.&#10;B)According to the rule of rational choice, Jordan will experience a net gain of $500 if he vacations in Jamaica.&#10;C)According to the rule of rational choice, Jordan will experience a net gain of $3,500 if he vacations in Jamaica.&#10;D)According to the rule of rational choice, Jordan will experience a net gain of $3,000 if he vacations in Jamaica.

Accepted Answer

The rule of rational choice suggests that if the marginal benefit exceeds the marginal cost, the decision should be made. Here, the marginal benefit ($3,500) is greater than the marginal cost ($3,000), resulting in a net gain of $500.

Question 4

Positive incentives:&#10;A)increase benefits or reduce costs.&#10;B)decrease the amount of affected behaviors.&#10;C)increase the amount of affected behaviors.&#10;D)Do both a. and c.

Accepted Answer

Positive incentives increase benefits or reduce costs (A), which in turn encourages and increases the amount of affected behaviors (C).

Question 5

The following table shows the marginal benefit to an individual of consuming pints of ice cream. ?If the ice cream parlor was giving away ice cream for its anniversary celebration, a rational consumer would purchase

A)3 pint of ice cream
B)4 pints of ice cream
C)5 pints of ice cream
D)6 pints of ice cream

Accepted Answer

The answer of The following table shows the marginal benefit...

Question 6

Select the best concern of the following topic&#10;&#10;-The decision by a household to eat in rather than go out for dinner this evening.&#10;A)Microeconomic topics&#10;B)Macroeconomic

Accepted Answer

The decision by a household to eat in rather than go out for dinner is a microeconomic topic because it involves individual decision-making and resource allocation at the household level.

Question 7

Select the best concern of the following topic&#10;&#10;-The unemployment rate increased from 4.5% to 4.8%.&#10;A)Microeconomic topics&#10;B)Macroeconomic

Accepted Answer

Macroeconomic topics deal with the economy as a whole, including unemployment rates.

Question 8

Select the best concern of the following topic&#10;&#10;-A decision by the Federal Reserve Bank to decrease the supply of money in the economy.&#10;A)Microeconomic topics&#10;B)Macroeconomic

Accepted Answer

The Federal Reserve Bank's decision to decrease the supply of money in the economy is a macroeconomic topic because it affects the overall economy, including inflation, unemployment, and economic growth.

Question 9

Select the best concern of the following topic&#10;&#10;-The general level of prices increased by 5% last year.&#10;A)Microeconomic topics&#10;B)Macroeconomic

Accepted Answer

The general level of prices is a macroeconomic concept that measures the overall price level of goods and services in an economy.

Question 10

Select the best concern of the following topic&#10;&#10;-The price of bicycles increased by $30 last year.&#10;A)Microeconomic topics&#10;B)Macroeconomic

Accepted Answer

The price of bicycles increasing is a microeconomic topic because it deals with the price change of a specific good in the market, rather than the economy as a whole.

Question 11

Select the best concern of the following topic

-The family restaurant chain closed down after losing much of its customer base to fast-food competitors over the last few years.

A)Microeconomic topics
B)Macroeconomic

Accepted Answer

The answer of Select the best concern of the following...

Deck 5: Economics Eight Powerful Ideas and the Role and Method of Economics