American Military University ECON 101: ECON 101 Tests 1-3.
Question 1 10 / 10 points The branch of economics that examines the impact of choices on aggregates in the economy is: Question options: positive economics. normative economics. macroeconomics. microeconomics. Question 2 10 / 10 points When we are forced to make choices we are facing the concept of: Question options: ceteris paribus. free goods. scarcity. the margin. Question 3 10 / 10 points An economic system is the set of rules that define _______ and _______ . Question options: resources; prices who gets to vote; when elections will be held market prices; factors of production how an economy's resources are to be owned; how decisions about the resources are to be made Question 4 0 / 10 points In a market capitalist economy: Question options: factors of production are owned privately and decisions about their use are basically made by individuals. factors of production are owned by the government but decisions about their use are made privately. private ownership exists but decisions about resource allocation are usually made centrally by the government. there is no role for the government. Question 5 10 / 10 points The branch of economics that examines the choices of consumers and firms is: Question options: positive economics. normative economics. macroeconomics. microeconomics. Question 10 / 10 6 points Scarcity in economics means: Question options: not having sufficient resources to produce all the goods and services we want. the wants of people are limited. there must be poor people in rich countries. economists are clearly not doing their jobs. Question 7 10 / 10 points In a command socialist economy: Question options: resources are government owned but individuals make some decisions over their use. resources are government owned and government exercises broad power over their use. resources are privately owned and individuals make decisions over their use. resources are privately owned but government exercises broad power over their use. Question 8 10 / 10 points The basic concern of economics is: Question options: to keep business firms from losing money. to prove that capitalism is better than socialism. to study the choices people make. to use unlimited resources to produce goods and services to satisfy limited wants. Question 9 10 / 10 points Whenever a choice is made: Question options: the value of all the other choices that could have been made is called opportunity cost. normative economics is encountered. the problem of "all other things unchanged" results. the opportunity cost of that choice is value of the next best alternative Question 10 10 / 10 points Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______. Question options: unlimited resources; economic systems human interactions; limited resources opportunity costs; choices social behavior; scarcity Question 1 10 / 10 points A shift of a demand curve to the right, all other things unchanged, will: Question options: increase equilibrium price and quantity. decrease equilibrium price and quantity. decrease quantity and increase price. increase quantity and decrease price. Question 2 10 / 10 points If the current price is above the equilibrium price, we would expect: Question options: quantity demanded to exceed quantity supplied. upward pressure on price. quantity supplied to exceed quantity demanded. no change in the market price. Question 3 0 / 10 points Demand is defined as: Question options: an amount that is purchased at a specific price, given supply. a schedule that establishes the price of a good. a schedule that shows how much will be purchased at various prices during a particular period, all other things unchanged. the amount that will be bought at a specific price. Question 4 10 / 10 points The primary difference between a change in demand and a change in the quantity demanded is: Question options: a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve. a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions. both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions. Question 5 10 / 10 points A negative relationship between the quantity demanded and price is called the law of ______. Question options: demand diminishing marginal returns market clearing supply Question 6 10 / 10 points The relationship between the quantity of a good or service sellers are willing and able to offer for sale and the independent variables that determine quantity is: Question options: supply. demand. equilibrium. disequilibrium. Question 7 0 / 10 points A price below the equilibrium price will: Question options: result in pressure for price to rise. result in a surplus. never be the case. result in pressure for price to fall. Question 8 10 / 10 points It is true that the equilibrium quantity will always go up if supply: Question options: and demand both increase. increases and demand decreases. and demand both decrease. decreases and demand remains unchanged. Question 9 10 / 10 points The intersection of the supply and demand curves indicates: Question options: the equilibrium solution in the market. a surplus that will cause the price to fall. a shortage that will cause the price to rise. the quantity demanded exceeds the quantity supplied. Question 10 10 / 10 points A decrease in supply means: Question options: a shift to the left of the entire supply curve. moving downward (to the left) along the supply curve with lower prices. less will be demanded at every price. more will be supplied at every price. Question 1 0 / 10 points Demand is price inelastic if: Question options: the price of the good responds slightly to a quantity change. the demand curve shifts very little when a demand shifter changes. the percentage change in quantity demanded is relatively small in response to a relatively large percentage change in price. all of the above are true. Question 2 10 / 10 points If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is: Question options: price elastic. price inelastic. unit price elastic. upward sloping. Question 3 10 / 10 points Which of the following will lead to a decrease in total revenue? Question options: price goes up and demand is perfectly inelastic price goes up and demand is price inelastic price declines and demand is price elastic price increases and demand is price elastic Question 4 0 / 10 points If total revenue goes up when price falls, the price elasticity of demand is said to be: Question options: price inelastic. unit price elastic. price elastic. positive. Question 5 10 / 10 points Price elasticity of demand measures the responsiveness of the change in: Question options: quantity demanded to a change in price. price to a change in quantity demanded. slope of the demand curve to a change in price. slope of the demand curve to a change in quantity demanded. Question 6 0 / 10 points The price elasticity of demand is: Question options: always positive. always greater than 1. usually equal to 1. always negative. Question 7 10 / 10 points A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per day when the price was $3 per tie. Hence, the absolute value of the price elasticity of demand is: Question options: greater than zero but less than 1. equal to 1. greater than 1 but less than 3. greater than 3. Question 0 / 10 8 points If the total revenue received by a firm does not change when it raises its price, this indicates that the demand for the firm's product is: Question options: unstable. price inelastic. price elastic. unit price elastic. Question 9 10 / 10 points The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is: Question options: total revenue. production possibilities. elasticity. slope. Question 10 0 / 10 points The price elasticity of a good will tend to be greater: Question options: the longer the relevant time period. the fewer number of substitute goods available. if it is a staple or necessity with few substitutes. All of the above are true.
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econ 101 tests 1 3
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econ 101
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econ 101 test
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the branch of economics that examines the impact o
