Q1 Econ Review

How have the earnings of U.S. workers changed since 1980?

• Wages of all workers have gone up.
• Wages of all workers have gone down.
• Wages of only college graduates have gone up.
• Wages of only non-college graduates have gone up.

The ways in which factors of production are combined determines the answer to which economic question?

• What will be produced?
• How will goods be produced?
• Who will consume goods?
• How can we provide a safety net?

If a student volunteers at a nursing home after school, which of the following might be a negative externality?

• A student might volunteer to spend more time with the residents.
• A student might learn a new skill.
• A student might be unable to work at her part-time job on that afternoon.
• A student would feel good about herself.

To improve its standard of living, a nation’s economy must

• remain stable
• grow through innovation
• reach economic equity
• allow the central government to make economic decisions

Which of the following is the kind of decision that can be made at the margin?

• whether or not to hire new workers
• whether or not to go on a vacation
• whether or not to build an extra room on a home
• whether or not to have a dog or a cat as a pet

The line on a production possibilities curve showing the relative amounts of two types of goods produced using all resources is called the

• production possibilities frontier
• opportunity cost line
• utilization of resources
• maximum possible production line

Which of the following is an example of changing physical capital?

• hiring more workers to do a job
• building extra space in a factory
• switching to cheaper fuel
• lowering workers' wages

A new runway has opened up at the airport, and citizens complain to local officials that the noise of the airplanes is disturbing their neighborhood. The noise is an example

• positive externality
• free-rider problem
• negative externality
• market failiure

What basic principles are fundamental to American free enterprise?

• state-owned property, contracts, voluntary exchange, self-interest
• economic freedom, private property, protection from competition
• open opportunity, private property, contracts, voluntary exchange
• economic freedom, private property, mandatory exchange

When government intervention causes the supply of a good to rise, what happens to the supply curve?

• It shifts to the left
• It shifts to the right
• it reverses direction
• the supply curve is not affected