WorksheetsQuarterly Exam
Total questions: 43
Worksheet time: 2hrs 9mins
Rational behavior means taking the ________________ steps to achieve a goal.
most popular
most moral
most efficient
most difficult
When individuals have goals to satisfy ourselves, it means our behavior is _________________.
primarily self-interested
selfish
only self-interested
justified
Individualism in economics means ________.
we are self-reliant
we are lone wolves
we share characteristics of groups
we think, reason, and act for ourselves
Who created the Labor Theory of Property?
Mises
Menger
Locke
Marx
The Labor Theory of Property states that we need to mix our labor with __________ to get new private property.
wood
natural stuff
unclaimed stuff
other people
In theory, private property owners have the right to __________ based on any reason.
exclude
preclude
intrude
include
One exception to the "right to exclude" in the U.S.A. occurs when private property is ____________.
closed to the public
open to the public
members only
actually public property
In the U.S., private property owners of stores and restaurants can't exclude based on _________.
race and religion
violent behavior
public safety
health precautions
Who owns Tropical Park?
State of Florida
Miami-Dade County
The people!
No one.
Can any public property be closed to the public?
Yes, all public property forbids foreigners.
Yes, depending on the purpose of the property.
No, all public property is open to us.
No, only private property can exclude.
In "The Lesson", Henry Hazlitt argues that there's only one lesson in economics. What is it?
Always buy low and sell high.
Invest while you are young to build wealth.
Ignore the long term, and focus on the short term.
Focus on both short and long term effects, and effects on all groups.
John Locke's Labor theory of Value states _____________
value depends on what we think.
value is determined by governments.
value should be determined by the amount of work put in to produce.
value is determined by markets.
Carl Menger states that value is __________.
subjective
objective
protective
projective
Every time a trade or transaction occurs, ____________.
both sides gain, but one side gains more
the worker receives only a fraction of the value they deserve
one side gains, the other loses
both sides gain because they traded something they value less for something they value more
In Chapter 2: "The Broken Window", a vandal throws a brick through a window of a bakery. When the town sees a glass repairman fixing the window, they come to the conclusion that the broken window created a job. What's actually going on?
Even though the vandal broke a window, he ended up getting the repairman a job.
Even though the window was shattered, sometimes destruction is good for the economy.
The window breaking didn't provide any new jobs at all, it just made the baker spend money on a new window.
Sir, I haven't read anything all quarter.
Scarcity exists because
we have unlimited desires, but only limited resources.
we have limited desires, but only limited resources
we have unlimited desires, but only unlimited resources.
We have limited desires, but only unlimited resources.
Human resources include
people that are owned by companies.
only the physical labor of workers.
any physical or mental work that we get paid for.
using delicious humans to make food products like Lunchables.
Natural resources can be divided into
scarce and rare.
organic and mechanic.
renewable and exhaustible.
American and International.
Another way of describing Capital Resources is:
the means of production.
the valuable resources.
the scarce resources.
the resources held by the community.
What's opportunity cost?
a sacrificed first born son
a sacrificed chance to do something
the cost of running a business
the price of the item you buy.
A trick to know if something is scarce is to imagine
the item being rare.
the item being free.
the item being awesome.
the item being everywhere.
According to Chapter 3 in Economics in One Lesson: After massive wars, people often confuse:
allies and enemies
needs and demand
needs and wants
destruction with construction
What is a Sunk Cost, and how should we treat it?
They are costs that we can retrieve as long as we invest properly.
They are losses we can't retrieve, therefore we should ignore them.
They are costs that are too heavy to recover from the bottom of the sea.
They are losses that are easily recoverable, but we need to keep trying.
What is the definition of economic Demand?
The willingness to buy at a certain price and time.
The willingness and ability to sell at a certain price.
The willingness and ability to buy at a certain time.
Ordering someone to fulfill your request... or else.
The Law of Demand clearly states that usually...
as prices increase, quantity demanded decreases.
as prices decrease, quantity demanded decreases.
as prices increase, quantity demanded increases.
as prices decrease quantity supplied increases.
What labels should be on the X and Y axes?
X should be Price, and Y should be Quantity Demanded.
X should be the number 0, and Y should be Price.
X should be Quantity Supplied, and Y should be Price.
X should be Quantity Demanded, and Y should be Price.
What is the difference between individual demand and market demand?
Market Demand focuses on demand within a market (Target, Walmart, and Publix).
Market Demand focuses on all individuals' economic activity, no matter where it takes place.
Market Demand focuses only on specific groups in the short term.
Market Demand relates only to the stock market.
The Substitution Effect states:
Pizza, Tacos, and Burgers are all excellent choices at 2am.
When the Price of item A increases, it shifts Quantity Demanded toward item B.
When the Price of Item A decreases, it shifts Quantity Demanded toward item B.
When the Price of Item A decreases, it shifts Quantity Supplied toward item B.
Describe the Complementary Effect between items A and B.
As the $ of Item A decreases, the QD for Item B increases.
As the $ of Item A decreases, the QD for Item B decreases.
As the $ of Item A increases, the QD for Item B increases.
As the $ of Item A decreases, the QS for Item B increases.
The definition of supply is
The willingness and ability to buy.
The willingness and ability to sell.
The ability to produce and consume.
The willingness and ability to produce.
The law of supply states:
As prices rise, quantity demanded rises.
As prices rise, quantity supplied falls.
As prices rise, quantity supplied rises.
As prices rise, quantity demanded falls.
The goal of the consumer is to maximize utility. The goal of the producer is to:
Maximize Profit
Maximize Costs
Maximize Prices
Maximize Revenue
People often criticize producers for putting profits over people. In reality, a producer...
Makes no money.
Is legally obligated to help people.
has to spend money on resources and employees in the hopes of making profits.
has to enrich himself personally before growing the business.
The concept of Economies of Scale literally means
scaling up your business as large as possible.
staying lean, but increasing efficiency.
that some companies expand but become less efficient.
growing and expanding the business and increasing efficiency.
How do we know this is a supply curve?
It looks similar to one we did in class.
The price and quantity supplied increase and decrease together.
All supply curves look the same.
Trick question: this is a demand curve.
The intersection between supply and demand is also known as
equilibrium
market center
demand price
demand/supply point
Equilibrium is also known as the Market Price. Why?
Equilibrium and Market Price are slightly different things. Market Price changes often, and equilibrium means balance.
It is the point when the price is agreed upon by an equal quantity of consumers and suppliers.
Why is anything anything??
Because a store like Target determines the price inside of its own store.
When a supplier overproduces, this happens.
We have a shortage. Qs outnumbers Qd.
We have a shortage. Qd outnumbers Qs.
We have a surplus. Qs outnumbers Qd.
We have a surplus. Qd outnumbers Qs.
After a surplus, a producer might feel...
"downward price pressure"
"upward price pressure"
"V-shaped price pressure"
"U-shaped price pressure"
When a supplier underproduces (accidentally or on purpose), we might have a
Surplus. Qs outnumbers Qd.
Shortage. Qd outnumbers Qs.
Shortage. Qs outnumbers Qd.
Hype-Beast Scenario. Qsupreme outnumbers Qbape.
When a supplier underproduces, the entire market of suppliers might feel
"upward price pressure"
"downward price pressure"
"V-shaped price pressure."
"U-shaped price pressure"
According to F.A. Hayek, which of these does NOT describe a price?
Prices are signals.
Prices are knowledge surrogates.
Prices are agreements between suppliers and consumers.
Prices are made legitimate by government intervention
Price volatility describes a scenario where
Prices undergo extreme increases and decreases
Prices may seem odd, but it's based on manipulation
Prices are relatively stable
Not exactly sure, but I will use the word "volatility" to try to get the hot smart chick to notice me at a party.
