Econ 1500 Final Exam Questions With
Correct Answers
Since air is limited in supply, it is scarce in the economic sense. - CORRECT
| | | | | | | | | | | | | | |
ANSWER✔✔-False
Adam Smith is the Father of Economics. - CORRECT ANSWER✔✔-True
| | | | | | | | |
Economic resources include labor, human capital, natural resources, money, and
| | | | | | | | | |
capital. - CORRECT ANSWER✔✔-False
| | |
Voluntary trade between Maria and Alex benefits both individuals, and voluntary
| | | | | | | | | | |
trade between Iceland and Ireland benefits both countries, but trade between
| | | | | | | | | | |
Ireland and Iceland does not necessarily benefit all individuals in both countries. -
| | | | | | | | | | | |
|CORRECT ANSWER✔✔-True |
George has spent a long time on a project, and now it seems that the marginal
| | | | | | | | | | | | | | | |
benefit of completing the project is less than the marginal cost of completing it.
| | | | | | | | | | | | | |
Nevertheless, if George is rational, he will complete the project anyway, because
| | | | | | | | | | | |
he has already spent so much time working on it. - CORRECT ANSWER✔✔-False
| | | | | | | | | | | |
Market failures include monopoly, externalities, and others. - CORRECT
| | | | | | | | |
ANSWER✔✔-True
,The opportunity cost to Jennifer of attending Utah State University is her tuition,
| | | | | | | | | | | | |
books, and living expenses. - CORRECT ANSWER✔✔-False
| | | | | |
Adam Smith asked the question, "Why are some nations rich and other nations
| | | | | | | | | | | | |
poor" in 1776. That question is no longer important to economists. - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-False
In the Constitutional Convention of 1787, the three controversies were: (1) How
| | | | | | | | | | | |
much power should the federal government have, relative to the States? (2)
| | | | | | | | | | | |
Should representation in Congress be proportional to a state's population, or
| | | | | | | | | | |
should all states have equal representation? (3) Should slavery be abolished? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-True |
Economic policy is "positive economics", while economic science is "normative
| | | | | | | | | |
economics". - CORRECT ANSWER✔✔-False | | |
The constitution established an institutional and legal framework very favorable
| | | | | | | | | |
to the market system. - CORRECT ANSWER✔✔-True
| | | | | |
If Canada has labor that is twice as productive as labor in Bulgaria, then he
| | | | | | | | | | | | | | |
standard of living in Canada will be about twice as high as the standard of living
| | | | | | | | | | | | | | | |
in Bulgaria. - CORRECT ANSWER✔✔-True
| | | |
Choices are necessary because of scarcity. - CORRECT ANSWER✔✔-True
| | | | | | | |
Although needs, as defined by economists, are limited, wants seem to be
| | | | | | | | | | | |
unlimited. - CORRECT ANSWER✔✔-True | | |
, Services are tangible and goods are intangible. - CORRECT ANSWER✔✔-False
| | | | | | | | |
The opportunity cost of using a resource in one way is the value of the best
| | | | | | | | | | | | | | | |
alternative use of the resource. - CORRECT ANSWER✔✔-True
| | | | | | |
Economists believe that markets are usually a good way to organize economic
| | | | | | | | | | | |
activity. - CORRECT ANSWER✔✔-True
| | |
Brianne decided to attend class today rather than go skiing. The value to Brianne
| | | | | | | | | | | | | |
of skiing today is her opportunity cost of attending class. - CORRECT ANSWER✔✔-
| | | | | | | | | | | |
True
The wealth of a nation is primarily determined by the nation's labor-force
| | | | | | | | | | | |
participation rate. - CORRECT ANSWER✔✔-False | | | |
There is trade-off in the long run between unemployment and inflation, but not
| | | | | | | | | | | | |
in the short run. - CORRECT ANSWER✔✔-False
| | | | | |
If there is a market failure, government might be able to improve the market
| | | | | | | | | | | | | |
outcome. - CORRECT ANSWER✔✔-True | | |
If Venezuela's government prints too much money, it will cause inflation. -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-True |
Correct Answers
Since air is limited in supply, it is scarce in the economic sense. - CORRECT
| | | | | | | | | | | | | | |
ANSWER✔✔-False
Adam Smith is the Father of Economics. - CORRECT ANSWER✔✔-True
| | | | | | | | |
Economic resources include labor, human capital, natural resources, money, and
| | | | | | | | | |
capital. - CORRECT ANSWER✔✔-False
| | |
Voluntary trade between Maria and Alex benefits both individuals, and voluntary
| | | | | | | | | | |
trade between Iceland and Ireland benefits both countries, but trade between
| | | | | | | | | | |
Ireland and Iceland does not necessarily benefit all individuals in both countries. -
| | | | | | | | | | | |
|CORRECT ANSWER✔✔-True |
George has spent a long time on a project, and now it seems that the marginal
| | | | | | | | | | | | | | | |
benefit of completing the project is less than the marginal cost of completing it.
| | | | | | | | | | | | | |
Nevertheless, if George is rational, he will complete the project anyway, because
| | | | | | | | | | | |
he has already spent so much time working on it. - CORRECT ANSWER✔✔-False
| | | | | | | | | | | |
Market failures include monopoly, externalities, and others. - CORRECT
| | | | | | | | |
ANSWER✔✔-True
,The opportunity cost to Jennifer of attending Utah State University is her tuition,
| | | | | | | | | | | | |
books, and living expenses. - CORRECT ANSWER✔✔-False
| | | | | |
Adam Smith asked the question, "Why are some nations rich and other nations
| | | | | | | | | | | | |
poor" in 1776. That question is no longer important to economists. - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-False
In the Constitutional Convention of 1787, the three controversies were: (1) How
| | | | | | | | | | | |
much power should the federal government have, relative to the States? (2)
| | | | | | | | | | | |
Should representation in Congress be proportional to a state's population, or
| | | | | | | | | | |
should all states have equal representation? (3) Should slavery be abolished? -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-True |
Economic policy is "positive economics", while economic science is "normative
| | | | | | | | | |
economics". - CORRECT ANSWER✔✔-False | | |
The constitution established an institutional and legal framework very favorable
| | | | | | | | | |
to the market system. - CORRECT ANSWER✔✔-True
| | | | | |
If Canada has labor that is twice as productive as labor in Bulgaria, then he
| | | | | | | | | | | | | | |
standard of living in Canada will be about twice as high as the standard of living
| | | | | | | | | | | | | | | |
in Bulgaria. - CORRECT ANSWER✔✔-True
| | | |
Choices are necessary because of scarcity. - CORRECT ANSWER✔✔-True
| | | | | | | |
Although needs, as defined by economists, are limited, wants seem to be
| | | | | | | | | | | |
unlimited. - CORRECT ANSWER✔✔-True | | |
, Services are tangible and goods are intangible. - CORRECT ANSWER✔✔-False
| | | | | | | | |
The opportunity cost of using a resource in one way is the value of the best
| | | | | | | | | | | | | | | |
alternative use of the resource. - CORRECT ANSWER✔✔-True
| | | | | | |
Economists believe that markets are usually a good way to organize economic
| | | | | | | | | | | |
activity. - CORRECT ANSWER✔✔-True
| | |
Brianne decided to attend class today rather than go skiing. The value to Brianne
| | | | | | | | | | | | | |
of skiing today is her opportunity cost of attending class. - CORRECT ANSWER✔✔-
| | | | | | | | | | | |
True
The wealth of a nation is primarily determined by the nation's labor-force
| | | | | | | | | | | |
participation rate. - CORRECT ANSWER✔✔-False | | | |
There is trade-off in the long run between unemployment and inflation, but not
| | | | | | | | | | | | |
in the short run. - CORRECT ANSWER✔✔-False
| | | | | |
If there is a market failure, government might be able to improve the market
| | | | | | | | | | | | | |
outcome. - CORRECT ANSWER✔✔-True | | |
If Venezuela's government prints too much money, it will cause inflation. -
| | | | | | | | | | | |
CORRECT ANSWER✔✔-True |
