TCC Econ Exam 1 with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
Economics may be best defined as the ✔Correct Answer-Social science concerned with how
individuals, institutions, and society make optimal choices under conditions of scarcity.
For Economists, the word "utility" means ✔Correct Answer-Pleasure and satisfaction
The problems of aggregate inflation and unemployment are: ✔Correct Answer-Major topics
of macroeconomics
scarcity refers to ✔Correct Answer-the inability of society o satisfy all human wants because
of limited resources.
In the production of goods and services, trade-offs exist because ✔Correct Answer-Society
has only a limited amount of productive resources.
All of the following are examples of physical capital EXCEPT ✔Correct Answer-Company stocks
and bonds
The value of the best alternative sacrificed to obtain something you want is referred to as
✔Correct Answer-opportunity cost
People always face trade-offs because ✔Correct Answer-They always have more than one use
for their time and money.
Economic scarcity: ✔Correct Answer-applies to all economies
Which of the following is a fundamental characteristic of the market system? ✔Correct
Answer-property rights.
Broadly defined, competition involves: ✔Correct Answer-Independently acting buyers and
sellers and freedom to enter or leave markets.
The presence of market failures implies that: ✔Correct Answer-There is an active role for
government, even in a market system.
In a market economy the distribution of output will be determined primarily by: ✔Correct
Answer-The quantities and prices of the resources that households supply.
The market systems answer to the fundamental question "What will be produced?" is
essentially: ✔Correct Answer-"Goods and services that are profitable."
, The market systems answer to the fundamental question "Who will get the goods and services?'
is essentially: ✔Correct Answer-"Those willing and able to pay for them."
Which of the following is a normative statement? ✔Correct Answer-It is too hot to play tennis
today.
Which of the following is a positive statement? ✔Correct Answer-The temperature is 92
degrees today.
The simple circular flow model shows that: ✔Correct Answer-households are on the selling
side of the resource market and on the buying side of the product market.
Refer to the above diagram. Flow (1) represents: ✔Correct Answer-Wage, rent, interest, and
profit income.
Refer to the above diagram. Flow (3) represents: ✔Correct Answer-Goods and services.
The production possibilities frontier illustrates the basic principle that: ✔Correct Answer-if all
the resources in an economy are in use, more of one good can be produced only if less of
another good is produced.
Assume an economy is operating at some point on its production possibilities curve, which
shows civilian and military goods. If the output of military goods is increased, the output of
civilian goods: ✔Correct Answer-must be decreased.
Refer to the above diagram. Other things equal, this economy will achieve the most rapid rate of
growth if: ✔Correct Answer-It chooses point A.
Refer to the above diagram. This economy will experience unemployment if it produces at
point: ✔Correct Answer-D
A market: ✔Correct Answer-Is an institution that brings together buyers and sellers.
The law of demand states that: ✔Correct Answer-Price and quantity demanded are inversely
related.
A rightward shift in the demand curve for product C might be caused by: ✔Correct Answer-A
decrease in the price of a product that is complementary to C.
If X is a normal good, a rise in money income will shift the: ✔Correct Answer-Demand curve
for X to the right.
Digital cameras and memory cards are: ✔Correct Answer-Complementary goods.
Answers |Latest Version |Already Graded A+
Economics may be best defined as the ✔Correct Answer-Social science concerned with how
individuals, institutions, and society make optimal choices under conditions of scarcity.
For Economists, the word "utility" means ✔Correct Answer-Pleasure and satisfaction
The problems of aggregate inflation and unemployment are: ✔Correct Answer-Major topics
of macroeconomics
scarcity refers to ✔Correct Answer-the inability of society o satisfy all human wants because
of limited resources.
In the production of goods and services, trade-offs exist because ✔Correct Answer-Society
has only a limited amount of productive resources.
All of the following are examples of physical capital EXCEPT ✔Correct Answer-Company stocks
and bonds
The value of the best alternative sacrificed to obtain something you want is referred to as
✔Correct Answer-opportunity cost
People always face trade-offs because ✔Correct Answer-They always have more than one use
for their time and money.
Economic scarcity: ✔Correct Answer-applies to all economies
Which of the following is a fundamental characteristic of the market system? ✔Correct
Answer-property rights.
Broadly defined, competition involves: ✔Correct Answer-Independently acting buyers and
sellers and freedom to enter or leave markets.
The presence of market failures implies that: ✔Correct Answer-There is an active role for
government, even in a market system.
In a market economy the distribution of output will be determined primarily by: ✔Correct
Answer-The quantities and prices of the resources that households supply.
The market systems answer to the fundamental question "What will be produced?" is
essentially: ✔Correct Answer-"Goods and services that are profitable."
, The market systems answer to the fundamental question "Who will get the goods and services?'
is essentially: ✔Correct Answer-"Those willing and able to pay for them."
Which of the following is a normative statement? ✔Correct Answer-It is too hot to play tennis
today.
Which of the following is a positive statement? ✔Correct Answer-The temperature is 92
degrees today.
The simple circular flow model shows that: ✔Correct Answer-households are on the selling
side of the resource market and on the buying side of the product market.
Refer to the above diagram. Flow (1) represents: ✔Correct Answer-Wage, rent, interest, and
profit income.
Refer to the above diagram. Flow (3) represents: ✔Correct Answer-Goods and services.
The production possibilities frontier illustrates the basic principle that: ✔Correct Answer-if all
the resources in an economy are in use, more of one good can be produced only if less of
another good is produced.
Assume an economy is operating at some point on its production possibilities curve, which
shows civilian and military goods. If the output of military goods is increased, the output of
civilian goods: ✔Correct Answer-must be decreased.
Refer to the above diagram. Other things equal, this economy will achieve the most rapid rate of
growth if: ✔Correct Answer-It chooses point A.
Refer to the above diagram. This economy will experience unemployment if it produces at
point: ✔Correct Answer-D
A market: ✔Correct Answer-Is an institution that brings together buyers and sellers.
The law of demand states that: ✔Correct Answer-Price and quantity demanded are inversely
related.
A rightward shift in the demand curve for product C might be caused by: ✔Correct Answer-A
decrease in the price of a product that is complementary to C.
If X is a normal good, a rise in money income will shift the: ✔Correct Answer-Demand curve
for X to the right.
Digital cameras and memory cards are: ✔Correct Answer-Complementary goods.
