1) The fundamental concept of Economics about resources is that the resources are: (A) equally distributed (B) unequally distributed (C) scarce (D) unlimited

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Encircle the correct option among the available.

1) The fundamental concept of Economics about resources is that the resources are:

(A) equally distributed

(B) unequally distributed

(C) scarce

(D) unlimited

2) Goods produced to produce yet other goods are called:

(A) final goods

(B) capital

(C) investment

(D) resources

3) The value of the good or service forgone by choosing another investment is called:

(A) opportunity cost

(B) purchasing power parity

(C) disposable income

(D) consumer price index

4) The branch of economics concerned with overall performance of the economy is known

as:

(A) Microeconomics

(B) Macroeconomics

(C) Econometrics

(D) Keynesian Economics

5) Economics is best defined as the study of how people, businesses, governments, and

societies:

(A) Make choices to cope with scarcity.

(B) Attain wealth.

(C) Choose abundance over scarcity.

(D)Use their infinite resources.

6) All tangible (see and touch) things that are produced for satisfaction of our wants are

known as:

(A) Wants

(B) Desires

(C)Goods.

(D)Demand7) Utility in economics means the total level of ____________received from consuming a

good or service:

(A) Satisfaction

(B) Profit.

(C)Amount

(D)Demand

8) Goods that are used by consumers for consumption purposes are known as:

(A) Consumer goods

(B) Producer goods.

(C)Raw material

(D)Intermediate goods

9) A good can be _______ or _______ good, depending upon its use:

(A)soft, hard

(B) bad, good

(C) consumer, producer

(D)direct, indirect

10)

For normal goods, its demand will ________ when its price increases:

(A) increase

(B) decrease

(C)remain constant

(D)inelastic

11)

Giffen goods are a special case of:

(A) inferior goods

(B) superior goods

(C) consumer goods

(D)producer goods

12)A Veblen good is a good for which demand increases as:

(A) its price decreases

(B) its price increases

(C)supply increases

(D)supply decreases

13)The law of demand states that, if price of a commodity increases its quantity demand will

fall and vice versa, while______:

(A) Other things being the same

(B) Income of consumer increase

(C)Taste of consumer changes for the good

(D)Willingness of consumer shift to substitute goods.14)The ordinal approach utility states it can be measured by:

(A) Assigning numerical values to them

(B) Ranking them

(C) Plotting them

(D)Quantifying them

15)A consumer is said to be in equilibrium when:

(A) Consumer consumes more of a good

(B) Indifference Curve is tangent to budget line

(C)The budget line cut the indifference curve

(D)Utility is higher

16)When MP > AP, increasing amount of labour will increase:

(A) Production

(B) Capital inflow

(C) Unit time

(D)Capacity of labour

17)

A change in quantity demanded of a good caused by a change in income of consumer is

known as:

(A) Price Elasticity

(B) Income Elasticity

(C) Cross Elasticity

(D)Price Cross Elasticity

18)

The income effect for inferior goods is:

(A) Positive

(B) Negative

(C)Zero

(D)No Effect

19)

A change in demand of a good A to a change in price of its related good B, is known as:

(A) Income Effect

(B) Cross Elasticity

(C)No effect

(D)Higher Effect

20)

Complementary goods have:

(A) Negative Cross Elasticity

(B) Positive Cross Elasticity

(C)Zero Cross Elasticity

(D)Low Cross Elasticity

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Marginal Benefit and Marginal Cost
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education