STUDENTS SUCCESS
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
ECS1501 ASSIGNMENT 10 SEMESTER 2 2024/2025 - DISTINCTION
GUARANTEED 100%
An individual's value for a good or service is....?
a. the amount of money he or she used to pay for
a good.
b. the amount of money he or she is willing to pay
for it.
c. the amount of money he or she has to spend on
goods.
d. None of the above.
ans:> The amount of money he or she is willing to pay for it.
The biggest advantage of capitalism is that...?
a. it allows the market to self-regulate.
b. it allows a person to follow his self-interest.
c. it allows voluntary transactions, which create
wealth.
d. All of the above
ans:> all of the above
Wealth-creating transactions are more likely to occur...?
a. with private property rights.
b. with strong contract enforcement.
c. with black markets.
d. All of the above.
ans:> all of the above
Which of these actions creates value?
a. buying a struggling firm and selling off its assets
for more than the purchase price
b. baseball slugger drawing paying fans into the
ballpark
, c. student increasing his decision making ability
with an MBA
d. all of the above
ans:> all of the above
Which of the following are examples of a price floor?
a. Minimum wages.
b. Rent controls in New York.
c. Both a and b.
d. None of the above.
ans:> minimum wages
A price ceiling
a. is a government-set maximum price.
b. is an implicit tax on producers and an implicit subsidy to consumers.
c. will create a surplus.
d. causes an increase in consumer and producer surplus.
ans:> is an implicit tax on producers and an implicit subsidy to
consumers.
Taxes
a. impede the movement of assets to higher-valued uses.
b. reduce incentives to work.
c. decrease the number of wealth-creating transactions.
d. All of the above.
ans:> all of the above
A consumer values a car at $20,000 and it costs a producer $15,000 to
make the same car. If the transaction is completed at $18,000, the
transaction will generate
a. no surplus.
b. $5,000 worth of seller surplus and unknown amount of buyer surplus.
c. $2,000 worth of buyer surplus and $3,000 of seller surplus.
d. $3,000 worth of buyer surplus and unknown amount of seller surplus.
ans:> $2,000 worth of buyer surplus and $3,000 of seller surplus.
A consumer values a car at $525,000 and a producer values the same
car at $485,000. If sales tax is 8% and is levied on the seller, then the
seller's bottom-line price is (rounded to the nearest thousand)
a. $527,000.
b. $524,000.
c. $525,000.
d. $500,000.
,ans:> $527,000
Wealth generating activities always:
a. produce positive externalities to society
b. produce gains for one party
c. increase wealth for everyone
d. increase total surplus
ans:> increase total surplus
Determining whether a policy is good or bad requires that we look:
a. At those who benefit from the policy
b. Those who lose because of the policy
c. A profit and loss spreadsheet recording the effects of the policy.
d. Both a and b
ans:> both a and b
Money-making opportunities result from:
a. A lack of efficiency
b. assets in lower-valued uses
c. assets in higher-valued uses
d. a failure to consider the longer-term
ans:> assets in lower-valued uses
The absence of property rights contributes to:
a. wealth
b. poverty
c. an equal playing field
d. none of these
ans:> poverty
A buyer willingly buys if the price of a good is:
a. above his value
b. below his value
c. at his value
d. less than he expected
ans:> below his value
The rational-actor paradigm is:
a. a tool for problem-solving
b. a tool giving advice on how to live your life.
c. a tool for analyzing behavior
d. a tool for evaluating options for action
ans:> a tool for analyzing behavior
, There are three levers one can push to correct bad decision-making.
Which of the following is NOT such a lever?
a. change the current decision makers' incentives
b. give more information to the current decision maker.
c. let someone else who has no relationship to the problem make the
decision.
d. let someone else who has better information or incentives make the
decision.
ans:> let someone else who has better information or incentives make
the decision.
if people behave rationally, optimally, and self-interestedly, a bad
decision occurs for which of these reason(s)?
a. the decision-maker did not have enough information to make a good
decision.
b. the decision maker-did not take the necessary time to make a good
decision.
c. the decision-maker did not have the incentive to make a good
decision.
d. both a and c
ans:> both a and c
A well-designed organization is one in which employee incentives are
aligned with:
a. organizational design
b. the relation-actor paradigm
c. corporate incentives
d. organizational goals
ans:> organizational goals
The one thing that unites all economists is their use of:
a. organizational design
b. the rational-actor paradigm
c. incentives
d. organizational history
ans:> the rational-actor paradigm
The owners of a small manufacturing concern have hired a vice
president to run the company with the expectation that he will buy the
company after five years. For the first $150,000 of profit, the vice
president's compensation is a flat annual salary of $50,000 plus 80% of
company profits. Beyond the first $150,000 in profits, the vice president's
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
ECS1501 ASSIGNMENT 10 SEMESTER 2 2024/2025 - DISTINCTION
GUARANTEED 100%
An individual's value for a good or service is....?
a. the amount of money he or she used to pay for
a good.
b. the amount of money he or she is willing to pay
for it.
c. the amount of money he or she has to spend on
goods.
d. None of the above.
ans:> The amount of money he or she is willing to pay for it.
The biggest advantage of capitalism is that...?
a. it allows the market to self-regulate.
b. it allows a person to follow his self-interest.
c. it allows voluntary transactions, which create
wealth.
d. All of the above
ans:> all of the above
Wealth-creating transactions are more likely to occur...?
a. with private property rights.
b. with strong contract enforcement.
c. with black markets.
d. All of the above.
ans:> all of the above
Which of these actions creates value?
a. buying a struggling firm and selling off its assets
for more than the purchase price
b. baseball slugger drawing paying fans into the
ballpark
, c. student increasing his decision making ability
with an MBA
d. all of the above
ans:> all of the above
Which of the following are examples of a price floor?
a. Minimum wages.
b. Rent controls in New York.
c. Both a and b.
d. None of the above.
ans:> minimum wages
A price ceiling
a. is a government-set maximum price.
b. is an implicit tax on producers and an implicit subsidy to consumers.
c. will create a surplus.
d. causes an increase in consumer and producer surplus.
ans:> is an implicit tax on producers and an implicit subsidy to
consumers.
Taxes
a. impede the movement of assets to higher-valued uses.
b. reduce incentives to work.
c. decrease the number of wealth-creating transactions.
d. All of the above.
ans:> all of the above
A consumer values a car at $20,000 and it costs a producer $15,000 to
make the same car. If the transaction is completed at $18,000, the
transaction will generate
a. no surplus.
b. $5,000 worth of seller surplus and unknown amount of buyer surplus.
c. $2,000 worth of buyer surplus and $3,000 of seller surplus.
d. $3,000 worth of buyer surplus and unknown amount of seller surplus.
ans:> $2,000 worth of buyer surplus and $3,000 of seller surplus.
A consumer values a car at $525,000 and a producer values the same
car at $485,000. If sales tax is 8% and is levied on the seller, then the
seller's bottom-line price is (rounded to the nearest thousand)
a. $527,000.
b. $524,000.
c. $525,000.
d. $500,000.
,ans:> $527,000
Wealth generating activities always:
a. produce positive externalities to society
b. produce gains for one party
c. increase wealth for everyone
d. increase total surplus
ans:> increase total surplus
Determining whether a policy is good or bad requires that we look:
a. At those who benefit from the policy
b. Those who lose because of the policy
c. A profit and loss spreadsheet recording the effects of the policy.
d. Both a and b
ans:> both a and b
Money-making opportunities result from:
a. A lack of efficiency
b. assets in lower-valued uses
c. assets in higher-valued uses
d. a failure to consider the longer-term
ans:> assets in lower-valued uses
The absence of property rights contributes to:
a. wealth
b. poverty
c. an equal playing field
d. none of these
ans:> poverty
A buyer willingly buys if the price of a good is:
a. above his value
b. below his value
c. at his value
d. less than he expected
ans:> below his value
The rational-actor paradigm is:
a. a tool for problem-solving
b. a tool giving advice on how to live your life.
c. a tool for analyzing behavior
d. a tool for evaluating options for action
ans:> a tool for analyzing behavior
, There are three levers one can push to correct bad decision-making.
Which of the following is NOT such a lever?
a. change the current decision makers' incentives
b. give more information to the current decision maker.
c. let someone else who has no relationship to the problem make the
decision.
d. let someone else who has better information or incentives make the
decision.
ans:> let someone else who has better information or incentives make
the decision.
if people behave rationally, optimally, and self-interestedly, a bad
decision occurs for which of these reason(s)?
a. the decision-maker did not have enough information to make a good
decision.
b. the decision maker-did not take the necessary time to make a good
decision.
c. the decision-maker did not have the incentive to make a good
decision.
d. both a and c
ans:> both a and c
A well-designed organization is one in which employee incentives are
aligned with:
a. organizational design
b. the relation-actor paradigm
c. corporate incentives
d. organizational goals
ans:> organizational goals
The one thing that unites all economists is their use of:
a. organizational design
b. the rational-actor paradigm
c. incentives
d. organizational history
ans:> the rational-actor paradigm
The owners of a small manufacturing concern have hired a vice
president to run the company with the expectation that he will buy the
company after five years. For the first $150,000 of profit, the vice
president's compensation is a flat annual salary of $50,000 plus 80% of
company profits. Beyond the first $150,000 in profits, the vice president's
