BNAD 301 EXAM 1 QUESTIONS AND ANSWERS
Astrology is not a science, according to current ideas, because - CORRECT ANSWER✅✅Astrologers
make no systematic attempt to test its predictions.
Since chemists and economists are scientists, they try to produce accurate theories about the world. In
these efforts, the economist has one potential advantage: - CORRECT ANSWER✅✅She has insight into
human behavior, because she is human.
Based on the discussion in class, which science has the most similarities with economics? - CORRECT
ANSWER✅✅Meteorology.
Which statement is an example of positive ("scientific") economics? - CORRECT ANSWER✅✅Cutting the
tax on capital gains will increase stock prices.
Match each academic discipline to primitive assumptions that it makes about human behavior.
1. Economics
2. Sociology
3. Evolutionary biology
4. Psychology - CORRECT ANSWER✅✅1. People rationally pursue their individual selfish goals.
2. People conform or try to conform to the norms and expectations of their group.
3. People act to promote the success of their offspring and genetic kin.
4.Brain chemistry determines much human behavior.
Which kind of economic behavior seems hardest to explain, using economists' fundamental assumptions
about behavior? - CORRECT ANSWER✅✅Contributing anonymously to a charity
Of the major groups of actors in the economy, which do economists generally assume make selfish and
rational decisions (for the purpose of building their models and making predictions? - CORRECT
ANSWER✅✅Firms and Consumers
, The opportunity cost of a resource is: - CORRECT ANSWER✅✅The current value of that resource in its
next best use
If a businessman owns a 20-year-old building, which is expected to last 10 more years, then what is the
annual opportunity cost of using that building in his business? - CORRECT ANSWER✅✅The annual rent
that he could currently earn from renting the building to someone else
If the economy is currently producing 8 units of cotton and 10 units of wheat, then the opportunity cost
of producing 3 more units of cotton is - CORRECT ANSWER✅✅2
If the economy is currently producing 11 units of wheat and 5 units of cotton, then the opportunity cost
of producing 1 more unit of cotton is closest to ______ units of wheat. - CORRECT ANSWER✅✅1/3
Suppose that the economy produces 10 units of wheat and 2 units of cotton. Which statements are true
- CORRECT ANSWER✅✅This combination is possible but inefficient because the economy could
produce more of both crops, using the same resources.
Suppose that the economy produces 7 units of wheat and 12 units of cotton. Which statements are true
- CORRECT ANSWER✅✅This will not occur because this combination is impossible.
What affects the position of the curve? - CORRECT ANSWER✅✅The technologies for producing wheat
and cotton and The quantity of resources available for the production of wheat and cotton.
Why does the PPC bow outward (compared to a straight line connecting the intercepts) - CORRECT
ANSWER✅✅Some of the available resources are better suited to producing wheat, while others are
better suited to producing cotton.
Which of the following can be true in a competitive market - CORRECT ANSWER✅✅The market has
more sellers than buyers and A significant barrier to entry makes it difficult for new sellers to enter the
market.
Many economists believe that ______ sometimes provide an exception to the Law of Supply. - CORRECT
ANSWER✅✅Labor markets
Astrology is not a science, according to current ideas, because - CORRECT ANSWER✅✅Astrologers
make no systematic attempt to test its predictions.
Since chemists and economists are scientists, they try to produce accurate theories about the world. In
these efforts, the economist has one potential advantage: - CORRECT ANSWER✅✅She has insight into
human behavior, because she is human.
Based on the discussion in class, which science has the most similarities with economics? - CORRECT
ANSWER✅✅Meteorology.
Which statement is an example of positive ("scientific") economics? - CORRECT ANSWER✅✅Cutting the
tax on capital gains will increase stock prices.
Match each academic discipline to primitive assumptions that it makes about human behavior.
1. Economics
2. Sociology
3. Evolutionary biology
4. Psychology - CORRECT ANSWER✅✅1. People rationally pursue their individual selfish goals.
2. People conform or try to conform to the norms and expectations of their group.
3. People act to promote the success of their offspring and genetic kin.
4.Brain chemistry determines much human behavior.
Which kind of economic behavior seems hardest to explain, using economists' fundamental assumptions
about behavior? - CORRECT ANSWER✅✅Contributing anonymously to a charity
Of the major groups of actors in the economy, which do economists generally assume make selfish and
rational decisions (for the purpose of building their models and making predictions? - CORRECT
ANSWER✅✅Firms and Consumers
, The opportunity cost of a resource is: - CORRECT ANSWER✅✅The current value of that resource in its
next best use
If a businessman owns a 20-year-old building, which is expected to last 10 more years, then what is the
annual opportunity cost of using that building in his business? - CORRECT ANSWER✅✅The annual rent
that he could currently earn from renting the building to someone else
If the economy is currently producing 8 units of cotton and 10 units of wheat, then the opportunity cost
of producing 3 more units of cotton is - CORRECT ANSWER✅✅2
If the economy is currently producing 11 units of wheat and 5 units of cotton, then the opportunity cost
of producing 1 more unit of cotton is closest to ______ units of wheat. - CORRECT ANSWER✅✅1/3
Suppose that the economy produces 10 units of wheat and 2 units of cotton. Which statements are true
- CORRECT ANSWER✅✅This combination is possible but inefficient because the economy could
produce more of both crops, using the same resources.
Suppose that the economy produces 7 units of wheat and 12 units of cotton. Which statements are true
- CORRECT ANSWER✅✅This will not occur because this combination is impossible.
What affects the position of the curve? - CORRECT ANSWER✅✅The technologies for producing wheat
and cotton and The quantity of resources available for the production of wheat and cotton.
Why does the PPC bow outward (compared to a straight line connecting the intercepts) - CORRECT
ANSWER✅✅Some of the available resources are better suited to producing wheat, while others are
better suited to producing cotton.
Which of the following can be true in a competitive market - CORRECT ANSWER✅✅The market has
more sellers than buyers and A significant barrier to entry makes it difficult for new sellers to enter the
market.
Many economists believe that ______ sometimes provide an exception to the Law of Supply. - CORRECT
ANSWER✅✅Labor markets
