UIUC ECON 102 MIDTERM 1 EXAM
QUESTIONS WITH CORRECT ANSWERS
The decision about what goods and services will be produced made in a market
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economy is made by :
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A. consumers and firms choosing which goods and services to buy or produce
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B. producers deciding what society wants
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C. workers deciding to produce only what the boss says must be produced
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D. consumers dictating to firms hat they need most.
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E. lawmakers in the government voting on what will be produced. - CORRECT
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ANSWER✔✔-A
Which of the following statements is TRUE about scarcity?
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A. Scarcity exists only when a shortage exists.
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B. Scarcity can be eliminated when a country becomes richer.
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, C. Both rich and poor people face the problem of scarcity.
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D. Scarcity exists only when supply is insufficient to meet demand. - CORRECT
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ANSWER✔✔-C
The threat of a large fine for failure to pay income taxes is an example of:
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A. people failing to consider all the benefits the government provides them.
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B. the excessive power of the Internal Revenue Service.
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C. the ineffectiveness of incentives to get people to pay their taxes.
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D. negative incentive to get all people to pay taxes. - CORRECT ANSWER✔✔-D
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Economists assume that people are motivated by :
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A. rational self-interest.
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B. benevolence.
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C. altruism.
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D. greed. - CORRECT ANSWER✔✔-A
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Normative economics involves:
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QUESTIONS WITH CORRECT ANSWERS
The decision about what goods and services will be produced made in a market
| | | | | | | | | | | | | |
economy is made by :
| | | | |
A. consumers and firms choosing which goods and services to buy or produce
| | | | | | | | | | | |
B. producers deciding what society wants
| | | | | |
C. workers deciding to produce only what the boss says must be produced
| | | | | | | | | | | | |
D. consumers dictating to firms hat they need most.
| | | | | | | | |
E. lawmakers in the government voting on what will be produced. - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-A
Which of the following statements is TRUE about scarcity?
| | | | | | | |
A. Scarcity exists only when a shortage exists.
| | | | | | |
B. Scarcity can be eliminated when a country becomes richer.
| | | | | | | | |
, C. Both rich and poor people face the problem of scarcity.
| | | | | | | | | |
D. Scarcity exists only when supply is insufficient to meet demand. - CORRECT
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ANSWER✔✔-C
The threat of a large fine for failure to pay income taxes is an example of:
| | | | | | | | | | | | | | | |
A. people failing to consider all the benefits the government provides them.
| | | | | | | | | | |
B. the excessive power of the Internal Revenue Service.
| | | | | | | |
C. the ineffectiveness of incentives to get people to pay their taxes.
| | | | | | | | | | |
D. negative incentive to get all people to pay taxes. - CORRECT ANSWER✔✔-D
| | | | | | | | | | | |
Economists assume that people are motivated by :
| | | | | | | |
A. rational self-interest.
| |
B. benevolence.
|
C. altruism.
|
D. greed. - CORRECT ANSWER✔✔-A
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Normative economics involves:
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