Econ 1500 exam 1 2025/2026 (Answered)
140 Q&A.
Adam Smith:
A. Thought that a market based economic system was superior to Mercantilism for maximizing the
wealth of a nation.
B. Thought a market system would result in goods being produced efficiently.
C. Thought a market system would tend to result in the correct combination of goods being
produced.
D. All of the above are correct.
D
Adam Smith's book, The Wealth of Nations:
A. Argued that Mercantilism would result in the correct answer to the question of what to produce.
B. Argued in favor of primarily using political forces to answer the question of what to produce.
C. Supported a policy of government intervention into the economy.
D. None of the above are correct.
D
According to the Invisible Hand Theorem, the market system will
A. distribute income equally.
B. eliminate scarcity.
C. produce goods efficiently.
D. None of the above are correct.
C
According to the Invisible Hand Theorem, the market system will
A. allocate resources inefficiently.
B. guarantee equality of opportunity.
C. produce goods that people want and demand.
D. eliminate Scarcity.
C
Which of the following is(are) scarce?
A. Clean water.
B. Electricity.
C. Workers.
D. All of the above are correct.
D
If you make decisions as assumed by economists, you are working full time as a "sales bro" or "sales
gal"for Fox Pest Control in Texas this semester rather than the alternative of attending USU in Logan
because you perceive the _____________ of being a "sales bro/gal" as less than the
________________ of being a"sales bro/gal this semester.
,A. Marginal Benefit; Marginal Cost.
B. Marginal Cost; Marginal Benefit.
C. Total Cost; Total Benefit.
D. Total Benefit; Total Cost.
B
For which of the following questions can the discipline of economics provide an explanation as to the
correct answer?
A. For Whom to Produce?
B. How to Produce?
C. What is the correct income distribution?
D. None of the above.
B
Applying the economic decision rule, you would attend USU this semester rather than work full time
forFedX if you perceive that the:
A. Marginal benefit to society of you attending USU > marginal cost to you of attending USU.
B. Total benefit to you of attending USU > marginal cost to you of attending USU.
C. Marginal benefit to society of you attending USU < marginal cost to you of attending USU.
D. Marginal benefit to you of attending USU > marginal cost to you of attending USU.
D
Scarcity results in:
A. opportunity costs.
B. the no free lunch principle.
C. the necessity of choice.
D. All of the above are correct.
D
Which word or phrase best explains what determines the average price and quantity sold per week
in theU.S. of the iPhone 14 Pro?
A. The price mechanism.
B. government control.
C. tradition.
D. All of the above
A
Which statement best summarizes the Invisible Hand theory?
A. Social forces channel individual self-interest to achieve the common or social good.
B. It requires political forces to channel individual self-interest to achieve the common good.
C. Markets typically channel individual self-interest to achieve the common or social good.
D. Socialism results in a more equitable distribution of income.
, C
Economics as a discipline
A. is a very narrow discipline concerned primarily with three issues - interest rates, inflation and the
stock market.
B. typically assumes that individuals are capable of comparing costs and benefits associated with
choices.
C. typically assumes that individuals primarily make decisions based on a social as opposed to an
individual perspective.
D. All of the above correct.
B
In the United States, which is primarily used to determine how cars are produced?
A. Government Forces
B. Tradition
C. Political Forces
D. Markets
D
In the United States, which is used to determine the wages of welders?
A. Social Forces
B. Tradition
C. Political Forces
D. Markets
D
In addition to The Wealth of Nations, Adam Smith is also the author of:
A. On Human Understanding
B. Two Treatises of Government
C. A Theory of Moral Sentiments
D. All of the above were written by the great Adam Smith
C
Which of the following are associated with Adam Smith and his book, Wealth of Nations:
A. Individual choice.
B. The Invisible Hand.
C. The Market System.
D. All of the above are correct.
D
Typically, USU would have more juniors and seniors on its men's basketball team compared to Duke
since:
A. USU players are not rational.
B. Duke players face a higher marginal cost of staying in college.
C. USU players face a higher marginal cost of staying in college.
D. Duke players face a higher marginal benefit of staying in college.
140 Q&A.
Adam Smith:
A. Thought that a market based economic system was superior to Mercantilism for maximizing the
wealth of a nation.
B. Thought a market system would result in goods being produced efficiently.
C. Thought a market system would tend to result in the correct combination of goods being
produced.
D. All of the above are correct.
D
Adam Smith's book, The Wealth of Nations:
A. Argued that Mercantilism would result in the correct answer to the question of what to produce.
B. Argued in favor of primarily using political forces to answer the question of what to produce.
C. Supported a policy of government intervention into the economy.
D. None of the above are correct.
D
According to the Invisible Hand Theorem, the market system will
A. distribute income equally.
B. eliminate scarcity.
C. produce goods efficiently.
D. None of the above are correct.
C
According to the Invisible Hand Theorem, the market system will
A. allocate resources inefficiently.
B. guarantee equality of opportunity.
C. produce goods that people want and demand.
D. eliminate Scarcity.
C
Which of the following is(are) scarce?
A. Clean water.
B. Electricity.
C. Workers.
D. All of the above are correct.
D
If you make decisions as assumed by economists, you are working full time as a "sales bro" or "sales
gal"for Fox Pest Control in Texas this semester rather than the alternative of attending USU in Logan
because you perceive the _____________ of being a "sales bro/gal" as less than the
________________ of being a"sales bro/gal this semester.
,A. Marginal Benefit; Marginal Cost.
B. Marginal Cost; Marginal Benefit.
C. Total Cost; Total Benefit.
D. Total Benefit; Total Cost.
B
For which of the following questions can the discipline of economics provide an explanation as to the
correct answer?
A. For Whom to Produce?
B. How to Produce?
C. What is the correct income distribution?
D. None of the above.
B
Applying the economic decision rule, you would attend USU this semester rather than work full time
forFedX if you perceive that the:
A. Marginal benefit to society of you attending USU > marginal cost to you of attending USU.
B. Total benefit to you of attending USU > marginal cost to you of attending USU.
C. Marginal benefit to society of you attending USU < marginal cost to you of attending USU.
D. Marginal benefit to you of attending USU > marginal cost to you of attending USU.
D
Scarcity results in:
A. opportunity costs.
B. the no free lunch principle.
C. the necessity of choice.
D. All of the above are correct.
D
Which word or phrase best explains what determines the average price and quantity sold per week
in theU.S. of the iPhone 14 Pro?
A. The price mechanism.
B. government control.
C. tradition.
D. All of the above
A
Which statement best summarizes the Invisible Hand theory?
A. Social forces channel individual self-interest to achieve the common or social good.
B. It requires political forces to channel individual self-interest to achieve the common good.
C. Markets typically channel individual self-interest to achieve the common or social good.
D. Socialism results in a more equitable distribution of income.
, C
Economics as a discipline
A. is a very narrow discipline concerned primarily with three issues - interest rates, inflation and the
stock market.
B. typically assumes that individuals are capable of comparing costs and benefits associated with
choices.
C. typically assumes that individuals primarily make decisions based on a social as opposed to an
individual perspective.
D. All of the above correct.
B
In the United States, which is primarily used to determine how cars are produced?
A. Government Forces
B. Tradition
C. Political Forces
D. Markets
D
In the United States, which is used to determine the wages of welders?
A. Social Forces
B. Tradition
C. Political Forces
D. Markets
D
In addition to The Wealth of Nations, Adam Smith is also the author of:
A. On Human Understanding
B. Two Treatises of Government
C. A Theory of Moral Sentiments
D. All of the above were written by the great Adam Smith
C
Which of the following are associated with Adam Smith and his book, Wealth of Nations:
A. Individual choice.
B. The Invisible Hand.
C. The Market System.
D. All of the above are correct.
D
Typically, USU would have more juniors and seniors on its men's basketball team compared to Duke
since:
A. USU players are not rational.
B. Duke players face a higher marginal cost of staying in college.
C. USU players face a higher marginal cost of staying in college.
D. Duke players face a higher marginal benefit of staying in college.
