ENC 201 (QUIZ #1) – Flashcards
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Which of the following can best be characterized as a subject of microeconomics?
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An examination of how much of a particular good gets produced
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Which of the following can best be characterized as a subject of microeconomics?
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An examination of consumer behavior
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Which of the following can best be characterized as a subject of macroeconomics?
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An examination of inflation
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Which of the following can best be characterized as a subject of macroeconomics?
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An examination of monetary policy
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__________________examines economies on a large scale, while __________________ correct examines economic activity on a relatively small scale.
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-Macroeconomics -microeconomics
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Bob, the owner of a deli in his town, needs to purchase something that economists would label as "capital" to help him produce sandwiches. Which of the following is an example of capital?
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A meat slicer to cut ham for sandwiches
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Maurice needs to purchase something that economists would label as "land" to help him produce cloth to sell to the fashion industry. Which of the following is an example of land?
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Cotton to be woven into fabric
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Samantha needs to purchase something that economists would label as "labor" to help her produce court documents for her law firm. Which of the following is an example of labor?
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A stenographer who can type courtroom proceedings
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The ability to see a market need and to organize inputs to meet that need is what type of market resource?
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Entrepreneurial ability
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The fish in the ocean are what type of market resource?
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Land
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The tools and machines used to produce a good or service are what type of market resource?
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Capital
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Which of the following scenarios most accurately reflects the concept of scarcity?
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Brett is a farmer with an open field on which he can plant either soybeans or corn.
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The opportunity cost of an action is always equal to the value of:
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the next-best alternative for the resources used to undertake the action.
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Which of the following best describes the opportunity cost of attending a free concert at the local coffee shop?
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The chance to play the latest video game with your roommate while you were at the concert
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Economic reasoning is based on the premise that:
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all decisions or actions have a cost associated with them.
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Lucinda collects Kewpie dolls, and can afford to buy up to six dolls. The table below describes the marginal benefit Lucinda gets for each additional doll she adds to her collection. Lucinda's Kewpie Doll Marginal Benefit Kewpie Dolls Marginal Benefit (dollars) 1 $15.00 2 12.00 3 9.00 4 6.00 5 3.00 6 0.00 a. If the price of Kewpie dolls is $6.00 per doll, how many dolls would Lucinda buy if she is rational? b. If the price of Kewpie dolls rose to $9.00 a doll, how many dolls would Lucinda buy if she is rational?
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a) 4 Dolls b) 3 Dolls
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Lucinda collects Beanie Babies, and can afford to buy up to six of them. The table below describes the marginal benefit Lucinda gets for each additional Beanie Baby she adds to her collection. Lucinda's Beanie Baby Marginal Benefit Beanie Babies Marginal Benefit (dollars) 1 $12.00 2 10.00 3 8.00 4 6.00 5 4.00 6 2.00 a. If the price of Beanie Babies is $8.00 per Beanie Baby, how many Beanie Babies would Lucinda buy if she is rational? b. If the price of Beanie Babies rose to $10.00 per Beanie Baby, how many Beanie Babies would Lucinda buy if she is rational?
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a) 3 Beanie Babies correct b)2 Beanie Babies correct
