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WorksheetsTen Principles of Economics-Part 2
Total questions: 10
Worksheet time: 6mins
Efficiency means everyone in the economy should receive an equal share of the goods and services produced.
True
False
The fact that people are willing to pay much more for a diamond, which is not needed for survival, than they are willing to pay for a cup of water, which is needed for survival, is an example of irrational behavior.
True
False
Which of the following situations describes the greatest market power?
Subaru’s impact on the price of cars
a farmer's impact on the price of corn
Microsoft's impact on the price of desktop operating systems
a student's impact on college tuition
Which of the following activities is most likely to produce an externality?
A student eats a hamburger in the student union.
A student reads a novel for pleasure.
A student sits at home and watches T.V.
A student has a party in her room in the student hall of residence
Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth
is more efficient and more equal for society.
is more efficient but less equal for society.
is more equal but less efficient for society.
is less equal and less efficient for society.
Making rational decisions "at the margin" means that people
make those decisions that do not impose a marginal cost.
compare the marginal costs and marginal benefits of each decision.
evaluate how easily a decision can be reversed if problems arise.
always calculate the marginal dollar costs for each decision.
Foreign trade
increases the scarcity of resources
makes a country more equitable
allows a country to avoid tradeoffs
allows a country to have a greater variety of products at a lower cost than if it tried to produce everything at home.
