Question 1

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 statement does not provide enough information about the potential benefits of building a new interstate highway system to determine whether it is worth the cost. It is possible that the benefits, such as improved transportation and increased economic activity, could outweigh the cost. Therefore, option C correctly states that the benefits may be greater than the cost.

Question 2

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 3

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 variable changes is known as slope.

Question 4

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

Accepted Answer

If people want more cars than there are cars available, it indicates that the demand for cars is higher than the supply, which means that cars are scarce.

Question 5

In the text,economics is defined as the science of

Accepted Answer

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

Question 6

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

Accepted Answer

The statement suggests that if you chose to have dinner with your friends, you had to give up the opportunity to surf the Internet. Therefore, surfing the Internet is the opportunity cost of having dinner with your friends.

Question 7

If variable X goes down as variable Y goes down,then X and Y are

Accepted Answer

The answer of If variable X goes down as variable...

Question 8

Which of the following statements is false?

Accepted Answer

Resource capital consists of produced goods that are used in the production of other goods and services. Unproduced goods are included in the category of natural resources, which is part of the resource land.

Question 9

If scarcity didn't exist,neither would

Accepted Answer

Rationing devices and competition are both responses to scarcity. Without scarcity, there would be no need for these mechanisms. Labor and capital are necessary regardless of scarcity, as they are fundamental factors of production.

Question 10

Something that provides disutility is called a

Accepted Answer

Only "bad" describes something that provides disutility, as it is the opposite of a good. Wants and needs do not necessarily provide disutility and are subjective to individual preferences.

Question 11

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 12

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

Accepted Answer

Scarcity exists, meaning that there are limited resources and people's wants and needs are unlimited. Therefore, people cannot have everything they want because there are not enough resources to produce everything for everyone.

Question 13

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 14

A good provides __________ and a bad provides __________.

Accepted Answer

A good provides utility because it satisfies the consumer's demand or need, while a bad provides disutility because it creates discomfort or harm to the consumer.

Question 15

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

Accepted Answer

Two variables are independent if the change in one variable does not affect the other variable. Therefore, if one variable changes (i.e. "changes"), but the other variable remains constant ("does not change"), then they are independent.

Question 16

Why do societies need rationing devices?

Accepted Answer

Rationing devices are necessary in society because scarcity exists. There are finite resources and endless wants and needs, so some way of allocating those resources is needed. Rationing devices can be anything from prices to waiting lists to lotteries, but they all serve the same purpose of distributing scarce resources in a way that is considered fair or equitable.

Question 17

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

Accepted Answer

When you make a choice, you must give up the opportunity to choose something else. This is the concept of opportunity cost, which is the cost of the best alternative forgone. Therefore, every time you make a choice, you incur an opportunity cost.

Question 18

How is scarcity related to competition?

Accepted Answer

Scarcity refers to the limited availability of resources, goods, or services in relation to the wants and needs of consumers. This limited availability creates competition among consumers who are seeking to obtain the scarce resources, goods, or services. Therefore, competition is an effect of scarcity as individuals compete to acquire the limited resources.

Question 19

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

The number of hours spent studying and the chances of winning the lottery are likely to be independent of each other, meaning that there is no relationship between X and Y. The amount of time spent studying does not affect the chances of winning the lottery, and vice versa.

Question 20

Something that provides utility is called a

Accepted Answer

Something that provides utility is typically considered a good, as it is useful or beneficial to the individual or society. The other options (bad, want, need) do not necessarily indicate the provision of utility.

Quiz 1: What Economics Is About

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?

Scarcity is defined as the condition in which

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

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

In the text,economics is defined as the science of

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

If variable X goes down as variable Y goes down,then X and Y are

Which of the following statements is false?

If scarcity didn't exist,neither would

Something that provides disutility is called a

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

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

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

A good provides and a bad provides .

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

Why do societies need rationing devices?

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

How is scarcity related to competition?

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?

Something that provides utility is called a

Quiz 1: What Economics Is About

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?

Scarcity is defined as the condition in which

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

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

In the text,economics is defined as the science of

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

If variable X goes down as variable Y goes down,then X and Y are

Which of the following statements is false?

If scarcity didn't exist,neither would

Something that provides disutility is called a

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

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

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

A good provides __________ and a bad provides __________.

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

Why do societies need rationing devices?

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

How is scarcity related to competition?

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?

Something that provides utility is called a

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

A good provides and a bad provides .

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

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