ECON201 NVCC Test 1 100% Correct Answers Verified Latest 2024 Version
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Economics may best be defined as: - Social science concerned with how individuals, institutions, and
society make optimal choices under conditions of scarcity
The economizing problem is one of deciding how to make best use of: - Limited resources to satisfy
virtually unlimited wants.
The main f...
ECON201 NVCC Test 1 | 100% Correct
Answers | Verified | Latest 2024 Version
Economics may best be defined as: - ✔✔Social science concerned with how individuals, institutions, and
society make optimal choices under conditions of scarcity
The economizing problem is one of deciding how to make best use of: - ✔✔Limited resources to satisfy
virtually unlimited wants.
The main function of an entrepreneur is to: - ✔✔Innovate
Macroeconomics approaches the study of economics from the viewpoint of: - ✔✔The entire economy
According to economists, economic self interest: - ✔✔is a reality that underlies economic behavior.
The assertion that "There is no free lunch" means that: - ✔✔all production involves the use of scarce
resources and thus the sacrifice of alternative goods.
Al sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any
money on my
financial investment." His economist friend points out that in effect he did lose money, because he could
have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of
the coins. The economist's analysis in this case incorporates the idea of - ✔✔opportunity costs
"Economics is concerned with how individuals, institutions, and society make optimal choices under
conditions of
scarcity." This statement is: - ✔✔positive and correct.
Economic models: - ✔✔emphasize basic economic relationships by purposefully simplifying the
complexities of the real world.
, The production possibilities curve illustrates the basic principle that - ✔✔if all the resources of an
economy are in use, more of one good can be produced only if less of another good is
produced.
Which of the following is an economic explanation for why most college-aged movie stars do not attend
college. - ✔✔the opportunity cost in terms of reduced income is too great
Refer to the above table. As compared to production alternative D, the choice of alternative C would: -
✔✔tend to generate a more rapid growth rate.
A point inside a production possibilities curve best illustrates: - ✔✔unemployment.
Which of the following will not produce an outward shift of the production possibilities curve? - ✔✔the
reduction of unemployment
The simple circular flow model shows that: - ✔✔households are on the selling side of the resource
market and on the buying side of the product market.
The two basic markets shown by the simple circular flow model are: - ✔✔product and resource.
Refer to the above diagram. Flow (1) represents: - ✔✔wage, rent, interest, and profit income.
Refer to the above diagram. Flow (2) represents: - ✔✔land, labor, capital, and entrepreneurial ability.
In terms of the circular flow diagram, businesses obtain revenue through the _____ market and make
expenditures in
the _____ market. - ✔✔product; resource
Which of the following is a limitation of the simple circular flow model? - ✔✔The determination of
product and resource prices is not explained.
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