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ECO 202: Questions With Correct Solutions (Pass!)
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ECO 202: Questions With Correct Solutions (Pass!)
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ECO 202: Questions With Correct Solutions (Pass!)In economics, choices must be made because we live in a world of Right
Ans - scarcity
The term ________ in economics refers to a group of buyers and sellers of a
product and the arrangement by which they come together to trade. Right
Ans - market
Making optimal decisions "at the margin" requires Right Ans - weighing the
cost and benefits of a decision before deciding if it should be pursued.
Studying how the management of Hewlett Packard decides how many
computers to produce and the price to charge for its computers would be
considered Right Ans - miicroeconomics
Financial Capital Right Ans - Money, loans, etc
Human Capital Right Ans - One's abilities, skills, etc
The machines workers have to work with are considered Right Ans -
Physical Capital
The idea that because of scarcity, producing more of one good or service
means producing less of another good or service refers to the economic
concept of Right Ans - trade-off
The highest valued alternative that must be given up to engage in an activity is
the definition of Right Ans - opportunity cost
An example of a factor of production is Right Ans - a worker hired by dell
When you purchase a new pair of jeans you do so in the Right Ans -
product market
Input, resource, and factor market all include Right Ans - Capital, labor, and
land
, The slope of a production possibilities frontier Right Ans - measures the
opportunity cost of producing one more unit of good
a production possibilities frontier with a bowed outward shape indicated
Right Ans - increasing opportunity costs as more and more of one good is
produced
in an increase in income leads to a decrease in the demand for popcorn, then
popcorn is Right Ans - an inferior good
A good that decreases in demand when customer income rises Right Ans -
inferior good
If the Apple iPhone and the Samsung Galaxy are considered substitutes, then,
other things equal, an increase in the price of the iPhone will Right Ans -
increase the demand for the galaxy
what is the difference between an "increase in demand" and an "increase in
quantity demanded" Right Ans - An increase in demand is represented by a
rightward shift of the demand curve while an increase in quantity demanded
is represented by a movement along a given demand curve.
In June, buyers of titanium expect that the price of titanium will fall in July.
What happens in the titanium market in June, holding everything else
constant? Right Ans - The demand curve shifts to the left.
A supply schedule Right Ans - is a table that shows the relationship
between the price of a product and the quantity of the product supplied.
Which of the following is evidence of a shortage of walnuts? Right Ans -
The quantity demanded of walnuts is greater than the quantity supplied.
shortage Right Ans - In economics, a shortage or excess demand is a
situation in which the demand for a product or service exceeds its supply in a
market.
Studies have shown that drinking one glass of red wine per day may help
prevent heart disease. Assume this is true, and favorable weather has
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