ECON FINAL

Front

Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?

A. A landowner leases land to a farmer

B. a farmer hires a teenager to help with harvest

C. A construction company rents trucks for its business

D. A woman buys corn for dinner

Back

D. A woman buys corn for dinner

Front

Factors of production are

A. used to produce goods and services.

B. also called output.

C. abundant in most economies.

D. assumed to be owned by firms in the circular-flow diagram.

Back

A. Used to produce goods and services

Front

Suppose that the country of Xenophobia chose to isolate itself from the rest of the world. Its ruler proclaimed that Xenophobia should become self-sufficient, so it would not engage in foreign trade. From an economic perspective, this idea would...

A. make sense if Xenophobia had an absolute advantage in all goods.

B. make sense if Xenophobia had no absolute advantages in any good.

C. Not make sense as long as Xenophobia had a comparative advantage in some good

D. Not make sense as long as Xenophobia had an absolute advantage in at least half the goods that could be traded

Back

C. Not make any sense as long as Xenophobia had a comparative advantage

Front

A person can benefit from specialization and trade by obtaining a good at a price that is

A. lower than his or her opportunity cost of that good.

 

B. the same as his or her opportunity cost of that good.

 

C. higher than his or her opportunity cost of that good.

 

D. different than his or her opportunity cost of that good.

Back

A. lower than his or her opportunity cost of that good.

Front

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)

A. Increase in the demand for bagels

B. Decrease in the demand for bagels

C. Increase in the demand for muffins

D. Decrease in the demand for Muffins

Back

C. Increase in the demand for muffins

Front

If mayonnaise and Miracle Whip are substitutes, then which of the following would increase the demand for Miracle Whip

A. A decrease in the price of Miracle Whip

B. An increase in the price of mayonnaise

C. A decrease in the price of mayonnaise

D. An increase in the price of Miracle Whip

Back

B. An increase in the price of mayonnaise

Front

Suppose new information is available that suggest the price of gold will be higher in the future than previously expected. As a result of this new information,

A. There is a decrease in the quantity demanded and a movement along the current demand curve

B. There is an Increase in quantity demanded a movement along the current demand curve

C. There is a rightward shift in the current demand curve for gold

D. There is a leftward shift in the current demand curve for gold

Back

C. There is a rightward shift in the current demand curve for gold

Front

Which of the following correctly describes how price adjustments eliminate a shortage?

A. As the price rises, the quantity demanded decreases while the quantity supplied increases.

B. As the price rises, the quantity demanded increases while the quantity supplied decreases.

C. As the price falls, the quantity demanded decreases while the quantity supplied increases.

D.As the price falls, the quantity demanded increases while the quantity supplied decreases.

Back

A. As the price rises, the quantity demanded decreases while the quantity supplied increases.

Front

Which of the following is FALSE regarding GDP per person as a measure of standard of living?

A. GDP does not include the production and sale of illegal goods.

B. GDP does not account for leisure time.

C. GDP is adjusted to include the value of goods produced in the home for home consumption.

D.GDP does not include information on income distribution

Back

C. GDP is adjusted to include the value of goods produced in the home for home consumption.

Front

GDP= C+I+G+(X-M)

Back

$13.94 Trillion