ECONOMICS (Week 6 Test)

Question 1(1 point)

In economic terms, when products and services are useful and/or desirable to you, they are said to have:

Question 1 options:

1. Governmental mandate
2. Liquidity
3. Flavor
4. Electricity
5. Utility

Question 2(1 point)

If there is not enough of a product of service that is deemed desirable, that product or service is said to have:

Question 2 options:

1. Velocity
2. Liquidity
3. Abundance
4. Irregularity
5. Scarcity

Question 3(1 point)

Rent control

Question 3 options:

1. Motivates landlords to spruce up their apartments.
2. Hurts the very people that it is supposed to help.
3. Means that landlords live in constant fear that their renters will leave.
4. Is a great example of the free market in action.
5. Means that houses cannot be sold in the market.

Question 4(1 point)

In economics, when we say that price discovery is impossible, we mean:

Question 4 options:

1. No one is allowed to look at prices.
2. The operation of the free market to discover the point of equilibrium has been disallowed.
3. The product is denominated in a foreign currency.
4. There is no demand, and therefore no price.
5. The price tag fell.

Question 5(1 point)

The law of diminishing marginal utility refers to the fact that:

Question 5 options:

1. The enjoyment or usefulness of a product progressively decreases.
2. Milkshakes are a product best served cold.
3. As supply goes up, price goes up.
4. Power companies charge more for services, and people use less utilities.
5. None of the above.

Question 6(1 point)

In a free market, who determines price?

Question 6 options:

1. The government
2. Monopolies and cartels
3. The United Nations
4. Local price committees
5. Willing buyers and sellers

Question 7(1 point)

According to Saint Augustine, a free market price is most likely affected by which of the following:

Question 7 options:

1. Its metaphysical value
2. Utility
3. Whether it possesses a soul
4. Monopolies
5. Government price-fixing

Question 8(1 point)

The town of West Undershirt passes an ordinance that employers must pay their employees a minimum of $100 per hour. This is an example of:

Question 8 options:

1. Price discovery
2. The law of demand
3. Wage control
4. The law of supply
5. The free market in action

Question 9(1 point)

If the U.S. Senate passes an ordinance that a T-bone steak can be sold for no more than $5 per pound, what is this an example of?

Question 9 options:

1. Monarchy
2. Monopoly
3. Price control
4. Wage control
5. Price discovery

Question 10(1 point)

According to the social teachings of the Church, which of the following is a moral duty of employers?

Question 10 options:

1. Establishing monopoly
2. Keeping prices in line with the national average
3. Paying a wage higher than the national average
4. Paying a living/family wage
5. Selling cheap products

Question 11(1 point)

The law of demand says that the amount demanded __ .

Question 11 options:

1. Increases with a fall in price.
2. Decreases with a fall in price.
3. Is not impacted by a fall in price.
4. Is not impacted by a rise in price.
5. Stays constant regardless of price.

Question 12(1 point)

Which of the following is an example of aneedandnotawant?

Question 12 options:

1. An iPhone
2. A 4K TV
3. Food
4. Headphones
5. Concert tickets

Question 13(1 point)

Which of these is the BEST example of the free market in action?

Question 13 options:

1. Government-controlled rent prices
2. Government-mandated wages
3. A local ordinance that determines the price of meat
4. Bidding for a pair of shoes on eBay
5. A federal policy that limits the price of vehicles

Question 14(1 point)

The idea that a father or mother should be paid enough to support their families is often referred to by Catholics as:

Question 14 options:

1. The mother's wage
2. The free market wage
3. The family wage
4. The minimum wage
5. The Catholic wage

Question 15(1 point)

According to Henry Hazlitt, what is the best way to raise wages?

Question 15 options:

1. Raise the minimum wage
2. Raise labor productivity
3. Teach a fixed and predetermined curriculum to students
4. Increase trade with China
5. Establish embargos and tariffs

Question 16(1 point)

According to Henry Hazlitt, which of these is a likely effect of minimum wage?

Question 16 options:

1. Employment
2. Unemployment
3. Increased competition
4. A growth of the workforce
5. An economic boom