Question 1

Two variables are independent if as one variable __________,the other variable __________.

Accepted Answer

If two variables are independent, then the change in one variable does not affect the other variable. Therefore, the correct choice is when one variable changes and the other does not change.

Question 2

Every time you make a __________,you incur a(n)__________.

Accepted Answer

Every time we make a choice, we have to give up the opportunity to choose a different option. This cost of choosing one option over another is known as opportunity cost. Therefore, option B is the correct choice as it correctly identifies the concept of opportunity cost associated with every choice. The other options are not correct as they either do not identify the concept of opportunity cost or make incorrect statements about decision-making.

Question 3

A good provides __________ and a bad provides __________.

Accepted Answer

A good provides utility, which means it satisfies a consumer's wants and needs, while a bad provides disutility, which means it results in dissatisfaction or frustration for the consumer.

Question 4

How is scarcity related to competition?

Accepted Answer

Scarcity refers to the limited availability of resources relative to human wants and needs. This scarcity, in turn, creates competition among individuals or groups who are vying for access to those resources. Therefore, competition is an effect of scarcity.

Question 5

If people want more cars than there are cars available,then it is necessarily true that

Accepted Answer

If there is greater demand for cars than there is supply, it indicates that there is a scarcity of cars in the market. Hence, option A is the correct answer. Option B, surplus of cars, indicates an excess of cars in the market which contradicts the given scenario. Option C, decreased supply of cars, suggests that there is insufficient supply of cars which is not the case as demand is greater than the available supply. Hence, option D is also incorrect.

Question 6

If scarcity didn't exist,neither would

Accepted Answer

Scarcity is the fundamental economic problem that arises from society having limited resources and unlimited wants and needs. In the absence of scarcity, there would be no need for rationing devices or competition, as all goods and services would be freely available. Labor and capital may still exist, but their roles in the economy would be different without the constraints of scarcity. Therefore, the best choice is E, as both answer choices A and B are consequences of scarcity.

Question 7

If variable X goes down as a result of variable Y going down,then X and Y are

Accepted Answer

When two variables move in the same direction, meaning if one decreases the other also decreases, they are directly related.

Question 8

Which of the following statements is false?

Accepted Answer

Resource capital consists of produced goods that can be used in the production process, not unproduced goods that can be turned into produced goods.

Question 9

Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be your chances of winning the Wednesday night state lottery.What kind of a relationship do you most likely expect between X and Y?

Accepted Answer

It is unlikely that there is a relationship between the number of hours spent studying for an exam and the chances of winning the state lottery. These two events are likely to be independent of each other.

Question 10

A person goes into a store and buys a computer for $1,210.In this case,price is acting as a

Accepted Answer

Price acts as a rationing device by determining who can and cannot afford to purchase goods or services based on their cost. In this scenario, the price of the computer ($1,210) determines whether the person can afford to buy it or not, effectively rationing the computer to those who have sufficient money.

Question 11

The __________ the opportunity cost of doing something,the __________ likely a person will do that something.

Accepted Answer

Opportunity cost is the cost of forgoing the next best alternative when making a decision. If the opportunity cost is lower, a person is more likely to do that something because they are giving up less by choosing it. Conversely, if the opportunity cost is higher, a person is less likely to do that something because they are sacrificing more by choosing it. Therefore, both B and D are correct.

Question 12

The cost of building a new interstate highway system is reported to be high at $25 billion.Does it necessarily follow that the interstate highway is not worth building?

Accepted Answer

The cost of building a new interstate highway system may be high at $25 billion, but it does not necessarily mean that it is not worth building. The benefits of building a new interstate highway system, such as improved transportation, increased mobility, and enhanced economic activity, may outweigh the costs. Therefore, option C is the correct answer as it highlights that the benefits of building a new interstate highway system may be greater than $25 billion.

Question 13

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

Accepted Answer

The statement implies that watching television was the alternative option that was foregone by choosing to have dinner with friends. Therefore, watching television is the opportunity cost of having dinner with friends.

Question 14

Scarcity is defined as the condition in which

Accepted Answer

Scarcity is a fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It means that there are not enough resources to fulfill all wants and needs, leading to the necessity of making choices on how to allocate resources efficiently.

Question 15

Something that provides disutility is called a

Accepted Answer

The term "disutility" refers to something that causes discomfort, dissatisfaction, or inconvenience. Therefore, the best choice is D, "bad."

Question 16

Why do societies need rationing devices?

Accepted Answer

Rationing devices such as prices, queuing, and lotteries, are necessary in societies because of the existence of scarcity – unlimited wants and needs but limited resources. This means that not everyone can have everything they want, and rationing devices help to allocate goods and services efficiently.

Question 17

The reason people can't have everything they want is because

Accepted Answer

Scarcity exists because resources are limited compared to unlimited wants and needs. Therefore, choices have to be made about how to allocate those limited resources, resulting in trade-offs and not being able to have everything one desires.

Question 18

In the textbook,economics is defined as the science of

Accepted Answer

The answer of In the textbook,economics is defined as the...

Question 19

The concept that relates how much one variable changes as another variable changes is

Accepted Answer

The concept that relates how much one variable changes as another changes is called slope.

Question 20

Something that provides utility is called a

Accepted Answer

Something that provides utility is considered a good.

Quiz 1: What Economics Is About

Two variables are independent if as one variable ,the other variable .

Every time you make a ,you incur a(n) .

A good provides and a bad provides .

How is scarcity related to competition?

If people want more cars than there are cars available,then it is necessarily true that

If scarcity didn't exist,neither would

If variable X goes down as a result of variable Y going down,then X and Y are

Which of the following statements is false?

Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be your chances of winning the Wednesday night state lottery.What kind of a relationship do you most likely expect between X and Y?

A person goes into a store and buys a computer for $1,210.In this case,price is acting as a

The the opportunity cost of doing something,the likely a person will do that something.

The cost of building a new interstate highway system is reported to be high at $25 billion.Does it necessarily follow that the interstate highway is not worth building?

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

Scarcity is defined as the condition in which

Something that provides disutility is called a

Why do societies need rationing devices?

The reason people can't have everything they want is because

In the textbook,economics is defined as the science of

The concept that relates how much one variable changes as another variable changes is

Something that provides utility is called a

Quiz 1: What Economics Is About

Two variables are independent if as one variable __________,the other variable __________.

Every time you make a __________,you incur a(n) __________.

A good provides __________ and a bad provides __________.

How is scarcity related to competition?

If people want more cars than there are cars available,then it is necessarily true that

If scarcity didn't exist,neither would

If variable X goes down as a result of variable Y going down,then X and Y are

Which of the following statements is false?

Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be your chances of winning the Wednesday night state lottery.What kind of a relationship do you most likely expect between X and Y?

A person goes into a store and buys a computer for $1,210.In this case,price is acting as a

The __________ the opportunity cost of doing something,the __________ likely a person will do that something.

The cost of building a new interstate highway system is reported to be high at $25 billion.Does it necessarily follow that the interstate highway is not worth building?

"If you hadn't gone to dinner with your friends,you would have stayed home and watched television." It follows that

Scarcity is defined as the condition in which

Something that provides disutility is called a

Why do societies need rationing devices?

The reason people can't have everything they want is because

In the textbook,economics is defined as the science of

The concept that relates how much one variable changes as another variable changes is

Something that provides utility is called a

Two variables are independent if as one variable ,the other variable .

Every time you make a ,you incur a(n) .

A good provides and a bad provides .

The the opportunity cost of doing something,the likely a person will do that something.