What is economics, as defined in this class?

Question 1 options:

Study of mathematics

The worst class ever

The study of decision making/scarcity

Reading about the economy

Question 2(1 point)

The individual's economizing problem is where we want to consume everything but we are limited by our income and time. Our wants exceeds our means. What is society's economizing problem?

Question 2 options:

Wanting to produce all goods and services but are limited by resources.

Being in massive debt.

Wanting to spend as much money as possible.

Not allocating resources efficiently

Question 3(1 point)

Economics is considered a social science. How is it similar to classic sciences?

Question 3 options:

n/a

both have perfect testing environments

both use the scientific method to analyze and make generalizations of how the world works

both are able to isolate variables

Question 4(1 point)

When regarding study of the economic decision making of the individual consumer or firm, we refer to this as:

Question 4 options:

macroeconomics

marginal cost

microeconomics

PPf

Question 5(1 point)

*BONUS* We would use "aggregate" units in microeconomics.

Question 5 options:

TrueFalse

Question 6(3 points)

You have $500. You want to spend your money on fake eyelashes and swords because you are a quirky person that has eclectic utility. A set of fake eyelashes is $2.50 and a sword is around $100.Which one of the following is NOT an optimal combination?

Question 6 options:

1 sword, 160 eyelashes

3 swords, 80 eyelashes

4 swords, 40 eyelashes

2 swords, 125 eyelashes

Question 7(1 point)

You have $500. You want to spend your money on fake eyelashes and swords because you are a quirky person that has eclectic utility. A set of fake eyelashes is $2.50 and a sword is around $100.

If you buy ONE sword, what is the opportunity cost in terms of eyelashes?

Question 7 options:

40 eyelashes

80 eyelashes

20 eyelashes

60 eyelashes

Question 8(1 point)

"The current inflation rate of the United States is at 1.9% as of May 2017." This is a positive economic statement.

Question 8 options:

TrueFalse

Question 9(1 point)

What market system has two cons of the incentive and coordination issue?

Question 9 options:

Capitalism

Laissez-faire

Socialism

Command system

Question 10(1 point)

Which of the following below describes the most important consequence of private property rights?

Question 10 options:

Citizens can engage in specialization, doing what they do best

Citizens are able to engage in transactions that are mutually agreeable

Citizens can protect their intellectual property

Citizens are able to choose whatever enterprise or business they want to open

Question 11(1 point)

In the circular flow system, the households are the ______________ in the factors of production market.

Question 11 options:

Consumers (buyers)

Government

Producers (sellers)

System

Question 12(3 points)

A pure command and pure laissez-faire system do not exist in the real world, both being an extreme polar opposite of the other.

Explain the pros of those two systems along with your opinion of which one you would prefer to live in. Feel free to use our articles in the discussion case to embellish on your points.

Question 13(2 points)

Let's examine the market for the hoverboards. Now let's say that hoverboards have now been reported to blow up and catch people's feet on fire.

How will this affect the equilibrium price and quantity for hoverboards?

Question 13 options:

P dec., Q dec.

P inc., Q dec.

P dec., Q inc.

P inc., Q inc.

Question 14(2 points)

Let's examine the market for cars. If the metal used for the cars become more expensive due to tariffs, how will this affect the equilibrium price and quantity?

Question 14 options:

P. dec., Q. inc.

P. dec., Q. dec.

P. inc., Q. dec.

P. inc., Q. inc.

Question 15(1 point)

If your income increases, your demand for an inferior good, such as cheap beer, will...

Question 15 options:

Stay the same

Decrease

Not enough information provided

Increase

Question 16(1 point)

The current trend is wearing muddy jeans. If you are a follower and your taste is determined by fads, then your demand for muddy jeans will

Question 16 options:

Decrease

Not enough information

Stay the same

Increase

Question 17(1 point)

If the price for raw beef has increased, we can expect the supply of hamburgers to....

Question 17 options:

Increase

Stay the same

Not enough information

Decrease

Question 18(1 point)

If there are a low number of sellers in the trashcan market, we can expect the supply of trashcans to...

Question 18 options:

Decrease

Stay the same

Not enough information

Increase