1. The price and quantity pairs that are graphically depicted in a demand curve can be taken from a _______________.
demand schedule.
2.The price elasticity of demand measures the responsiveness of _____________.
the quantity demanded of a good to a change in its price
3.Which of the following best describes a demand curve?
The willingness to pay for a specific quantity of a good over a variety of price and quantity combinations.
4.Tom owns a bakery and decides to bake a few extra loaves of bread each morning. If he is making a decision “at the margin,” it implies that he is comparing:
The additional revenue earned to the additional cost of producing the extra loaves of bread.
5.What is the difference between cyclical and structural unemployment?
Cyclical unemployment occurs when there is not enough aggregate demand in an economy
6.How will an increase in wages impact the supply of labor, ceteris paribus?
The quantity supplied will increase, as depicted as a movement along the supply of labor curve.
7.If the price elasticity of demand for a good is relatively elastic, then ___________.
a change in the price causes a large change in quantity demanded
8.Why is the study of economics relevant?
Economics is the scientific study of the way in which humans make choices about production, consumption and wealth when faced with scarce resources.
9.Which of these is NOT a factor that affects demand?
The market structure
10.Which of the following is included in the broadest (i.e. most inclusive) measure of unemployment reported by the BLS?
All of these answers
11.Assume a pizza costs $10. When the price increases to $12, demand falls 10%. What is the own-price elasticity of demand? Note: in economics, elasticity is generally reported as a positive number even when it is negative.
0.5
12.Bill is a construction worker who was laid off because the market for new homes has been adversely affected in the recession. Bill’s unemployment is considered part of what type of unemployment?
Cyclical unemployment
13. If the price elasticity of demand for a product is 2.5 and its price has increased by 3%, we can conclude that the quantity demanded:
Decreased by 7.5%
14.Consumers often face a trade-off between ______ and ______.
current consumption; future consumption
15.Which of the following statements is NOT true?
Full employment is the unacceptable level of unemployment somewhere above 0%
16.A firm must spend $150,000 on equipment in order to begin widget production, and $18 on labor and materials to produce each widget. What is the lowest price at which the firm will sell widgets rather than stop production?
$18 plus ($150,000) divided by (total number of widgets sold)
17.Suppose you make the decision to volunteer for an event in school for an hour this week. This means that you would have to take an hour off from your summer job, for which you earn $10 per hour. You spend $3 in bus fare in order to get to school and $5 for lunch. If you went to work, you would have been able to walk to your job, and lunch would have been provided to you by the office. The opportunity cost of volunteering is:
18
18.Which of the following is NOT an example of a firm?
All of these answers
19.Which of the following best explains the role of mathematics in accomplishing the goals of the study of economics?
Economics is a social science that assesses the relationship between the consumption and production of goods and services in an environment of finite resources.
20.Which of the following is NOT a characteristic of a free market economy?
Minimum wage laws are the only form of regulation
21.Where can economic theory be applied?
Economic theory and analysis may be applied throughout society, including business, finance, health care, and government.
22.The statement “The Fed ought to focus more on lowering unemployment than controlling inflation” is a ____________.
Normative statement, because it expresses a value judgement
Other Links:
See other websites for quiz:
Check on QUIZLET