Economists assume that

Group of answer choices

individuals behave in unpredictable ways.

consumer behavior is explained by the existence of unlimited resources.

people put other people's interests ahead of their own.

optimal decisions are made at the margin.

Flag question: Question 2Question 21pts

Economists assume that rational people

Group of answer choices

never use all available information as they act to achieve their goals.

undertake activities that benefit others and hurt themselves.

only weigh the benefits and costs of the most desirable alternative actions.

respond to economic incentives.

Flag question: Question 3Question 31pts

What does the term "marginal" mean in economics?

Group of answer choices

the edge of a market

an additional or extra

illegal

secondary

trivial

Flag question: Question 4Question 41pts

Trade-offs force society to make choices when answering what three fundamental questions?

Group of answer choices

What will be the prices of goods and services; how will these goods and services be produced; and who will receive them?

What goods and services to produce; how will these goods and services be produced; and who receives them?

Who gets jobs; what wages do workers earn; and who owns what property?

How much will be saved; what will be produced; and how can these goods and services be fairly distributed?

Flag question: Question 5Question 51pts

Every society faces economic trade-offs. This means

Group of answer choices

some people live better than others do.

not everyone can have enough goods to survive.

producing more of one good means less of another good can be produced.

society's output cannot be made available to all.

Flag question: Question 6Question 61pts

Opportunity cost is defined as

Group of answer choices

the benefit of an activity.

the monetary expense associated with an activity.

the highest valued alternative that must be given up to engage in an activity.

the total value of all alternatives that must be given up to engage in an activity.

Flag question: Question 7Question 71pts

Who receives the goods and services produced in the United States depends largely on

Group of answer choices

how income is distributed.

how the goods and services are produced.

what goods and services are produced.

government redistribution.

Flag question: Question 8Question 81pts

In a market economy, who decides what goods and services will be produced?

Group of answer choices

only the producers

only consumers

consumers and producers

the government

Flag question: Question 9Question 91pts

How does a market system prevent people from getting as many goods and services as they wish?

Group of answer choices

Governments interfere with the market mechanism to influence the allocation of goods and services.

In a market system, firms can charge any price they want, thus preventing poor people from getting as many goods and services as they wish.

The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor.

The government imposes taxes on those who earn beyond a certain amount of income.

Flag question: Question 10Question 101pts

Which of the following is a problem inherent in centrally planned economies?

Group of answer choices

There are no problems and everyone, including consumers, is satisfied.

There is too much production of low-cost, high-quality goods and services.

Production managers are more concerned with satisfying government's orders than with satisfying consumer wants.

Unemployment is too high.

Flag question: Question 11Question 111pts

Competition forces firms to produce and sell products as long as the ________ to consumers exceeds the ________ of production.

Group of answer choices

marginal benefit; marginal cost

marginal benefit; marginal benefit

marginal cost; marginal cost

marginal cost; marginal benefit

Flag question: Question 12Question 121pts

Which of the following is a microeconomics question?

Group of answer choices

Why do economies experience periods of recession?

Will government intervention lower the unemployment rate?

Why has growth in the economy slowed down over the past decade?

How will Apple decide on a selling price for the iPad?

Flag question: Question 13Question 131pts

Which of the following statements is true?

Group of answer choices

An inverse relationship has a positive slope value.

A direct relationship has a negative slope value.

A curved line has slope values that change at every point.

A straight line has a slope of one.

Flag question: Question 14Question 141pts

The production possibilities frontier shows

Group of answer choices

the various products that can be produced now and in the future.

the maximum attainable combinations of two products that may be produced in a particular time period with available resources.

what an equitable distribution of products among citizens would be.

what people want firms to produce in a particular time period.

Flag question: Question 15Question 151pts

The production possibilities frontier model assumes all of the followingexcept

Group of answer choices

labor, capital, land and natural resources are fixed in quantity.

the economy produces only two products.

any level of the two products that the economy produces is currently possible.

the level of technology is fixed and unchanging.

Flag question: Question 16Question 161pts

A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced.

Group of answer choices

linear

bowed inward

bowed outward

perfectly horizontal

Flag question: Question 17Question 171pts

An outward shift of a nation's production possibilities frontier can occur due to

Group of answer choices

a reduction in unemployment.

a natural disaster like a hurricane or bad earthquake.

a change in the amounts of one good desired.

an increase in the labor force.

Flag question: Question 18Question 181pts

According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then all of the following are likely to happenexcept

Group of answer choices

fewer goods will be produced for consumption today.

the production possibilities frontier will be shift outward in the future.

future economic growth is enhanced.

the country's total production will fall.

Flag question: Question 19Question 191pts

If you can produce more of something than others with the same resources, you have

Group of answer choices

a comparative advantage.

an absolute advantage.

an efficient production system.

a free-market economy.

Flag question: Question 20Question 201pts

If property rights are not well enforced, all of the following are likely to occurexcept

Group of answer choices

fewer goods and services will be produced.

economic efficiency will be reduced.

an economy will produce inside its production possibilities frontier.

a significant number of people will be willing to risk their funds by investing them in local businesses.

Flag question: Question 21Question 211pts

Which of the following is a factor of production?

Group of answer choices

an acre of forested land

a U.S. Treasury bond

20 shares of Ford stock

$25,000 in cash

Flag question: Question 22Question 221pts

If smartwatches are considered substitutes for smartphones, the increase in the price of smartwatches would, all else equal,

Group of answer choices

increase the demand for smartphones.

decrease the demand for smartphones.

increase the quantity of smartphones demanded.

decrease the quantity of smartphones demanded.

Flag question: Question 23Question 231pts

Economic surplus is maximized in a competitive market when

Group of answer choices

demand is equal to supply.

the deadweight loss equals the sum of consumer surplus and producer surplus.

marginal benefit equals marginal cost.

producers sell the quantity that consumers are willing to buy.

Flag question: Question 24Question 241pts

Which of the following is the best example of a tariff?

Group of answer choices

a limit imposed on the number of sports utility vehicles that the United States can import from Japan

a subsidy granted by the U.S. government to domestic sports utility vehicle manufacturers so they can compete more effectively with foreign sports utility vehicle manufacturers

a tax placed on all sports utility vehicles sold in the domestic market

a $5,000 per-car fee imposed on all sports utility vehicles imported into the United States

Flag question: Question 25Question 251pts

Figure 7-1 Figure 7-1 shows the U.S. demand and supply for leather footwear. Refer to Figure 7-1.Under autarky, the equilibrium price is

Group of answer choices

$0.

$24.

$30.

$54.

Flag question: Question 26Question 261pts

Eliminating trade barriers does all of the followingexcept

Group of answer choices

increases economic efficiency.

lowers incomes.

lowers domestic prices.

All of these occur when trade barriers are eliminated.

Flag question: Question 27Question 271pts

Macroeconomics, as opposed to microeconomics, includes the study of what determines the level of

Group of answer choices

employment in a specific industry.

employment in the economy.

output of a specific firm.

output of a specific industry.

Flag question: Question 28Question 281pts

Which of the following isnotdirectly counted in GDP?

Group of answer choices

investment expenditures

government purchases

intermediate goods

consumer goods

Flag question: Question 29Question 291pts

The nominal GDP of the U.S. in 2015 was approximately $17.3 trillion. This means that

Group of answer choices

the value of output in 2015 was around $17.3 trillion.

total income in 2015 was around $17.3 trillion.

total spending in 2015 was around $17.3 trillion.

All of these are true.

Flag question: Question 30Question 301pts

To calculate GDP by the expenditure method, one must add

Group of answer choices

wages, rents, interest, and profits.

consumption spending, investment spending, government spending, and net exports.

consumption spending, investment spending, government spending, and exports.

labor, natural resources, entrepreneurship, and capital.

Flag question: Question 31Question 311pts

The unemployment rate is

Group of answer choices

the percentage of the labor force that is employed.

the percentage of the number employed that is unemployed.

the percentage of the working-age population that is unemployed.

the percentage of the labor force that is unemployed.

the percentage of the working-age population that is employed.

Flag question: Question 32Question 321pts

The labor force participation rate equals the

Group of answer choices

(number of employed divided by the labor force) 100.

(labor force divided by the number of people not in the labor force) 100.

(labor force divided by working-age population) 100.

(labor force divided by the total population) 100.

Flag question: Question 33Question 331pts

Figure 4-3 Figure 4-3 shows the market for granola. The market is initially in equilibrium at a price ofP₁and a quantity ofQ₁. Now suppose producers decide to cut output toQ₂in order to raise the price toP_2. Refer to Figure 4-3. What area represents consumer surplus atP₂?

Group of answer choices

A

A+B

B+C

A+B+D+E

Flag question: Question 34Question 341pts

Inflation that is ________ than what is expected benefits ________ and hurts ________.

Group of answer choices

less; lenders; borrowers

less; borrowers; lenders

greater; lenders; borrowers

greater; lenders; no one

Flag question: Question 35Question 351pts

What are menu costs?

Group of answer choices

the full list of a firm's costs of production

the costs to a firm of changing prices

the cost to a household of borrowing money when there is deflation

the opportunity cost of dining in a restaurant instead of at home

Flag question: Question 36Question 361pts

If an economy experiences deflation, the real interest rate

Group of answer choices

will be less than the nominal interest rate.

will be negative when the nominal interest rate is positive.

will be greater than the nominal interest rate.

will be equal to the deflation rate, so long as the nominal interest rate is positive.

Flag question: Question 37Question 371pts

Assume there is a surplus in the market for hybrid automobiles. Which of the following statements correctly describes this situation?

Group of answer choices

The supply of hybrid automobiles is greater than the demand for hybrid automobiles.

Some consumers will be unable to obtain hybrid automobiles at the market price and will have an incentive to offer to buy the product at a higher price.

The price of hybrid automobiles will fall in response to the surplus; as the price falls the quantity demanded will increase and the quantity supplied will decrease.

the surplus will cause an increase in the equilibrium price of hybrid automobiles.

Flag question: Question 38Question 381pts

At market equilibrium,

Group of answer choices

demand equals supply.

quantity demanded equals quantity supplied.

surpluses are greater than shortages.

shortages are greater than surpluses.

Flag question: Question 39Question 391pts

At a product's equilibrium price

Group of answer choices

anyone who needs the product will be able to buy the product, regardless of ability to pay.

the federal government will provide the product to anyone who cannot afford it.

not all sellers who are willing to accept the price will find buyers for their products.

any buyer who is willing and able to pay the price will find a seller for the product.

Flag question: Question 40Question 401pts

Which of the following would cause a decrease in the supply of peanut butter?

Group of answer choices

a decrease in the price of jelly (assuming that peanut butter and jelly are complements)

a decrease in the price of peanut butter

an increase the price of peanuts

an increase in the technology used to produce peanut butter

Flag question: Question 41Question 411pts

If the United States lifts the embargo on Cuban products, what will happen in the U.S. market for Cuban cigars?

Group of answer choices

The supply curve will shift to the left.

The supply curve will shift to the right.

The demand curve will shift to the right.

The demand curve will shift to the left.

Flag question: Question 42Question 421pts

A supply curve

Group of answer choices

is a table that shows the relationship between the price of a product and the quantity of the product supplied.

is a curve that shows the relationship between the price of a product and the quantity of the product supplied.

is the relationship between the supply of a good and the cost of producing the good.

is a curve that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange.

Flag question: Question 43Question 431pts

When the price of a good rises, consumers buy a smaller quantity because of the ________ effect and the ________ effect.

Group of answer choices

substitution; income

normal; inferior

substitute; complement

supply; demand

Flag question: Question 44Question 441pts

Apple's decision in 2002 to focus on developing a smartphone rather than a tablet computer exemplifies the

Group of answer choices

refusal of firms to invest in more than one project where unlimited resources are involved.

refusal of firms to invest in more than one project where limited resources are involved.

trade-off that firms face due to unlimited resources.

trade-off that firms face due to limited resources.

Flag question: Question 45Question 451pts

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, what was the real interest rate you paid?

Group of answer choices

16 percent

12 percent

8 percent

6 percent

Flag question: Question 46Question 461pts

Table 9-14 The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010. Refer to Table 9-14.The percentage change in real average earnings from 1965 to 2010 equals

Group of answer choices

2.0 percent.

19.7 percent.

24.6 percent.

80.3 percent.

Flag question: Question 47Question 471pts

Article Summary

According to JP Morgan Chase, increased shipments of Chinese steel over the past two years has generated a wave of protectionism from countries around the globe. Decreasing domestic demand and slower economic growth have resulted in a large increase in steel exports from China, driving down global prices. The almost doubling of Chinese steel exports since 2013 has steel mills in areas ranging from South Africa to Europe to India to the United States pushing their governments for protectionist measures against the Chinese-produced steel. Source: Jasmine Ng, " JPMorgan Says `Waves of Protectionism' Will Cap China Steel," Bloomberg.com, October 4, 2015. Refer to the Article Summary.Assume countries initially enacted protectionist measures against Chinese steel imports. If these protectionist measures were eventually eliminated, then all else equal, the price of steel in those countries would________ and the quantity of steel demanded in those countries would ________.

Group of answer choices

increase; increase

increase; decrease

decrease; increase

decrease; decrease

Flag question: Question 48Question 481pts

Figure 7-2 Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 7-2 shows the impact of this tariff. Refer to Figure 7-2.The loss in domestic consumer surplus as a result of the tariff is equal to

Group of answer choices

$5 million.

$19.875 million.

$24.875 million.

$31.125 million.

Flag question: Question 49Question 491pts

Figure 4-6 Figure 4-6 shows the demand and supply curves for the coffee market. The government believes that the equilibrium price is too low and tries to help almond growers by setting a price floor at $7.00. Refer to Figure 4-6. What is the value of consumer surplus after the imposition of the price floor?

Group of answer choices

$1,500

$2,700

$4,500

$5,700

Flag question: Question 50Question 501pts

Figure 4-9 Figure 4-9 shows the market for cigarettes. The government plans to impose a unit tax in this market. Refer to Figure 4-9.What is the size of the unit tax?

Group of answer choices

$8

$5

$3

cannot be determined from the figure