Question 1

Explain the concept of externality and give an example.

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Question 2

Consider two countries, Muria and Zenya. In Muria total annual output is worth $800 million and people work 40 million hours. In Zenya total annual output is worth $900 million and people work 50 million hours. In which country is productivity higher?

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Question 3

Give an example of government intervention that is intended to reduce an externality.

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Question 4

Suppose that in Germany total annual output is worth $600 million and people work 40 million hours. In France total annual output is worth $700 million and people work 50 million hours. In which country do people enjoy a higher standard of living?

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Question 5

Explain the concept of market failure.

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Question 6

What do prices reflect in a market economy?

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Question 7

What does the "invisible hand" refers to?

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Question 8

In the short run, an increase in the money supply is likely to lead to inflation and unemployment.

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Question 9

Invisible hand is a term used by the economist in his 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations.

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Question 10

Economists use the term to refer to a situation in which the market on its own fails to produce an efficient allocation of resources.

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Question 11

Economists use the term to refer to an increase in the overall level of prices in the economy.

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Question 12

Invisible hand is a term used by the economist to describe how the decisions of households and firms lead to desirable market outcomes.

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Question 13

Economists use the term to refer to fluctuations in economic activity, such as employment and production.

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Question 14

Economists use the term to refer to the ability of a single person or a small group) to have a substantial influence on market prices.

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Question 15

What are the two reasons for the government to intervene in a market?

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Question 16

Give an example of government intervention that is intended to improve equality.

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Question 17

What are the two possible causes of market failure?

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Question 18

What are the two short­run effects of increasing the quantity of nation's money?

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Quiz 1: Ten Principles of Economics

Explain the concept of externality and give an example.

Consider two countries, Muria and Zenya. In Muria total annual output is worth $800 million and people work 40 million hours. In Zenya total annual output is worth $900 million and people work 50 million hours. In which country is productivity higher?

Give an example of government intervention that is intended to reduce an externality.

Suppose that in Germany total annual output is worth $600 million and people work 40 million hours. In France total annual output is worth $700 million and people work 50 million hours. In which country do people enjoy a higher standard of living?

Explain the concept of market failure.

What do prices reflect in a market economy?

What does the "invisible hand" refers to?

In the short run, an increase in the money supply is likely to lead to inflation and unemployment.

Invisible hand is a term used by the economist in his 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations.

Economists use the term to refer to a situation in which the market on its own fails to produce an efficient allocation of resources.

Economists use the term to refer to an increase in the overall level of prices in the economy.

Invisible hand is a term used by the economist to describe how the decisions of households and firms lead to desirable market outcomes.

Economists use the term to refer to fluctuations in economic activity, such as employment and production.

Economists use the term to refer to the ability of a single person or a small group) to have a substantial influence on market prices.

What are the two reasons for the government to intervene in a market?

Give an example of government intervention that is intended to improve equality.

What are the two possible causes of market failure?

What are the two shortrun effects of increasing the quantity of nation's money?

Quiz 1: Ten Principles of Economics

Explain the concept of externality and give an example.

Consider two countries, Muria and Zenya. In Muria total annual output is worth $800 million and people work 40 million hours. In Zenya total annual output is worth $900 million and people work 50 million hours. In which country is productivity higher?

Give an example of government intervention that is intended to reduce an externality.

Suppose that in Germany total annual output is worth $600 million and people work 40 million hours. In France total annual output is worth $700 million and people work 50 million hours. In which country do people enjoy a higher standard of living?

Explain the concept of market failure.

What do prices reflect in a market economy?

What does the "invisible hand" refers to?

In the short run, an increase in the money supply is likely to lead to inflation and unemployment.

Invisible hand is a term used by the economist in his 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations.

Economists use the term to refer to a situation in which the market on its own fails to produce an efficient allocation of resources.

Economists use the term to refer to an increase in the overall level of prices in the economy.

Invisible hand is a term used by the economist to describe how the decisions of households and firms lead to desirable market outcomes.

Economists use the term to refer to fluctuations in economic activity, such as employment and production.

Economists use the term to refer to the ability of a single person or a small group) to have a substantial influence on market prices.

What are the two reasons for the government to intervene in a market?

Give an example of government intervention that is intended to improve equality.

What are the two possible causes of market failure?

What are the two short­run effects of increasing the quantity of nation's money?

What are the two shortrun effects of increasing the quantity of nation's money?