Unit 1 Test_ Microeconomics - ECO102_1001

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2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 1/16 Unit 1 Test Due Jan 14 at 11:59pm Points 30 Questions 30 Available Jan 8 at 12am - Jan 19 at 11:59pm Time Limit None Allowed Attempts 2 This quiz was locked Jan 19 at 11:59pm. Attempt History Attempt Time Score LATEST Attempt 1 39 minutes 29 out of 30 Score for this attempt: 29 out of 30 Submitted Jan 14 at 8:40am This attempt took 39 minutes. 1 / 1 pts Question 1 Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect: Andy's demand for pizza to increase. Andy's demand for pizza to decrease. Andy's quantity of pizza demanded to decrease. Andy's demand for beer to increase. Correct! Correct! 1 / 1 pts Question 2

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 2/16 The marginal benefit of a slice of pizza is the: total amount that a consumer is willing to pay for a whole pizza, divided by the number of slices difference between the value of the slice to the consumer and the price of the slice. maximum amount that a consumer is willing to pay for the slice. Correct! Correct! price of the slice of pizza 1 / 1 pts Question 3 The lesson of __________ is to forget about the money that’s irretrievably gone and instead to focus on the marginal costs and benefits of future options. marginal utility sunk costs Correct! Correct! marginal analysis budget constraints 1 / 1 pts Question 4 The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 3/16 consumption marginal analysis diminishing marginal utility Correct! Correct! utility 1 / 1 pts Question 5 The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person than consumption of later units is a common pattern. utility Correct! Correct! marginal benefit opportunity cost sunk costs 0 / 1 pts Question 6 The opportunity cost of an action: can be determined by considering both the benefits that flow from as well as the monetary costs incurred as a result of the action. ou Answered ou Answered can be determined by adding up the bills incurred as a result of the action.

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2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 4/16 can be objectively determined only by economists. is a subjective valuation that can be determined only by the individual who chooses the action. orrect Answer orrect Answer 1 / 1 pts Question 7 Why is there scarcity? Because the opportunity set determines this. Because theory dictates it. Because our unlimited wants exceed our limited resources Correct! Correct! Because human wants are limited. 1 / 1 pts Question 8 In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers. division of labor Correct! Correct! interconnected economy task economy modern economy

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 5/16 1 / 1 pts Question 9 Economic models like the _____________________ are not physical models, but instead are diagrams or graphs or even mathematical equations that represent economic patterns or theories. financial capital market circular flow diagram Correct! Correct! financial investment market Specialization Model 1 / 1 pts Question 10 In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of: all consumers. buyers and sellers. Correct! Correct! producers and input suppliers. producers and government planning committees. 1 / 1 pts Question 11

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 6/16 The model that economists use for illustrating the process of individual choice in a situation of scarcity is the budget constraint, sometimes also called the _______________, a diagram which shows what choices are possible. opportunity set Correct! Correct! consumption choice time value of money risk premium 1 / 1 pts Question 12 Which of the following best denotes the reason for the existence of substantial black markets? a market-oriented economy a command economy Correct! Correct! government laws and rules the microeconomy 1 / 1 pts Question 13 Any given demand or supply curve is based on the ceteris paribus assumption that ___________________. everything is variable.

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2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 7/16 all else is held equal Correct! Correct! no one knows which variables will change and which will remain constant. what is true for the individual is not necessarily true for the whole. 1 / 1 pts Question 14 Marginal thinking is best demonstrated by: choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time. Correct! Correct! deciding to never purchase a coat made with animal skins or furs acquiring the information relevant to a choice before making that choice measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake 1 / 1 pts Question 15 The slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price of one good and dividing it by the price of the other good. personal preference utility level

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 8/16 budget constraint Correct! Correct! opportunity set 1 / 1 pts Question 16 In deciding how many hours to work, Beulah will make a choice that maximizes her _______; that is, she will choose according to her preferences for leisure time and income. budget constraint opportunity set utility Correct! Correct! production possibilities frontier 1 / 1 pts Question 17 The nature of demand indicates that as the price of a good increases: suppliers wish to sell less of it. more of it is produced. more of it is desired. buyers desire to purchase less of it. Correct! Correct!

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 9/16 1 / 1 pts Question 18 Which of the following best describes a monetary policy tool? interest rates Correct! Correct! taxes household savings government spending 1 / 1 pts Question 19 Refer to Figure 2-2. At Point A in the production possibilities graph shown, the economy: is not using its resources efficiently. Correct! Correct! is using its resources efficiently while producing clothing but no food. is using its resources efficiently while producing food but no clothing. is using its resources efficiently to produce both food and clothing.

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2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 10/16 1 / 1 pts Question 20 Regardless of whether you are looking through the microeconomics microscope or the macroeconomics telescope, the fundamental subject material of the interconnected __________ doesn’t change. market economy Correct! Correct! production firm 1 / 1 pts Question 21 Refer to Figure 2-1. Along the production possibilities frontier, the most efficient point of production depicted is:

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 11/16 Point B Point C Point D All points on the production possibilities frontier are equally efficient. Correct! Correct! 1 / 1 pts Question 22 The choice on a production possibilities set that is socially preferred, or the choice on an individual’s budget constraint that is personally preferred, will display _____________________. allocative efficiency Correct! Correct! the production possibilities frontier

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 12/16 trade-offs scarcity 1 / 1 pts Question 23 A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the __________________ . demand curve to the right supply curve to the left supply curve to the right Correct! Correct! demand curve to the left 1 / 1 pts Question 24 Refer to Figure 2-1. The most inefficient point depicted is:

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2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 13/16 Point A Point C Point D Point G Correct! Correct! 1 / 1 pts Question 25 Refer to Table 2-1. A student has only a few hours to prepare for two different exams tomorrow morning. The above table shows alternative possible exam outcomes with three alternative uses of the student's time. The opportunity cost of scoring an 84 on the history exam rather than 76 is:

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 14/16 10 points on the economics exam 8 points on the history exam 7 points on the economics exam Correct! Correct! 12 points on the economics exam 1 / 1 pts Question 26 When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right. prices rise equilibrium is achieved costs of production fall Correct! Correct! there is a population increase 1 / 1 pts Question 27 In the ______________, households receive goods and services and pay firms for them. labor market financial capital market goods and services market Correct! Correct! savings market

2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 15/16 1 / 1 pts Question 28 The demand curve for a typical good has a(n): negative slope because some consumers switch to other goods as the price rises. Correct! Correct! negative slope because consumer incomes fall as the price of the good rises. negative slope because the good has less "snob appeal" as its price falls. inverse slope because as the price goes up, the good has more profitability. 1 / 1 pts Question 29 ______________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling. Rent controls Price ceilings Price floors Correct! Correct! Subsidies 1 / 1 pts Question 30 _________________ refers to the total number of units that are purchased at that price.

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2/13/24, 2:26 PM Unit 1 Test: Microeconomics - ECO102_1001 https://egcc.instructure.com/courses/40784/quizzes/250522 16/16 quantity quantity demanded Correct! Correct! supply market quantity Quiz Score: 29 out of 30

Unit 1 Test_ Microeconomics - ECO102_1001

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