FSU HAMMOCK MACRO FINAL UPDATED QUESTIONS
AND ANSWERS
B - CORRECT ANSWER✅✅✅"An 10% increase in the minimum wage will increase unemployment by
1%. This statement is...
A. consistent with the economics of price ceilings.
B. a positive economic statement.
C. a normative economic statement.
D. a negative externality.
B D - CORRECT ANSWER✅✅✅This is a multiple answer question, which means that there may be
more than one correct answer. Select all the answers that are correct.
Which of the following are examples positive economic statements?
A. The unemployment rate is too high.
B. The unemployment rate is 4%.
C. If the price of gasoline rises above $3.00, that is too high.
D. A decrease in the price of gasoline will cause the quantity supplied to fall, ceteris paribus.
C - CORRECT ANSWER✅✅✅The opportunity cost of an action is
A. the monetary payment the action required.
B. the total time spent by all parties in carrying out the action.
C. the value of the best opportunity that must be sacrificed in order to take the action.
D. the cost of all alternative actions that could have been taken, added together.
b - CORRECT ANSWER✅✅✅The opportunity cost of going to college is
A. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses.
B. the value of the best opportunity a student gives up to attend college.
C. zero for students who are fortunate enough to have all of their college expenses paid by someone
else.
D. zero, since a college education will allow a student to earn a larger income after graduation.
,B - CORRECT ANSWER✅✅✅point A is
A. unattainable.
B. inefficient.
C. efficient.
D. preferable to point B.
A - CORRECT ANSWER✅✅✅Mateo values his camper at $4,000, and Nicole values it at $9,000. If
Nicole buys it from Mateo for $7,000, which of the following is true?
A. Mateo gains $3,000 of value, and Nicole gains $2,000 of value.
B. Mateo gains $7,000 of value, and Nicole loses $7,000 of value.
C. Mateo gains $7,000 of value, and Nicole gains $6,000 of value.
D. Mateo and Nicole both gain $7,000 of value.
D - CORRECT ANSWER✅✅✅The production possibilities curve illustrates the basic principle that
A. an economy's capacity to produce is unrelated to its population.
B. if all the resources of an economy are being used efficiently, more of one good can be produced only
if more of another good is produced.
C. an economy will automatically move toward a point at which all of its resources are being used
inefficiently.
D. if all the resources of an economy are being used efficiently, more of one good can be produced only
if less of another good is produced.
B - CORRECT ANSWER✅✅✅The market for printed economic textbooks is in equilibrium. As incomes
rise, students buy fewer printed textbooks, and buy more e-books instead. You can conclude (ceteris
paribus) that...
A. printed textbooks are normal goods
B. printed textbooks are inferior goods.
C. printed textbooks are complements for e-books.
D. e-books are inferior goods.
, B - CORRECT ANSWER✅✅✅Consider the demand curve for blue jeans. The price of blue jeans goes
down. Ceteris paribus, which of the following will occur?
A. The quantity of blue jeans demanded falls.
B. The quantity of blue jeans demanded rises.
C. The demand for blue jeans falls.
D. The demand for blue jeans rises.
B - CORRECT ANSWER✅✅✅The Law of Demand is...
A. a law of nature, like the law of gravity.
B. a general tendency in human behavior.
C. mostly false, except in a few circumstances.
D. always true, but only for computer programs.
C - CORRECT ANSWER✅✅✅According to the law of supply,
A. more of a good is desired by consumers as the price falls.
B. less of a good is desired by consumers as the price rises.
C. more of a good will be offered by suppliers as the price rises.
D. less of a good will be offered by suppliers as the price rises.
A - CORRECT ANSWER✅✅✅Which of the following would most likely increase the supply of beef?
A. lower prices of grains used to feed cattle
B. lower prices for chicken, a substitute for beef
C. new medical research suggesting that beef causes more serious health problems than was previously
thought
D. an increase in the cost of transporting beef products to the consumer market
D - CORRECT ANSWER✅✅✅How will an increase in lumber prices influence the home construction
market?
A. The demand for newly constructed homes will increase.
AND ANSWERS
B - CORRECT ANSWER✅✅✅"An 10% increase in the minimum wage will increase unemployment by
1%. This statement is...
A. consistent with the economics of price ceilings.
B. a positive economic statement.
C. a normative economic statement.
D. a negative externality.
B D - CORRECT ANSWER✅✅✅This is a multiple answer question, which means that there may be
more than one correct answer. Select all the answers that are correct.
Which of the following are examples positive economic statements?
A. The unemployment rate is too high.
B. The unemployment rate is 4%.
C. If the price of gasoline rises above $3.00, that is too high.
D. A decrease in the price of gasoline will cause the quantity supplied to fall, ceteris paribus.
C - CORRECT ANSWER✅✅✅The opportunity cost of an action is
A. the monetary payment the action required.
B. the total time spent by all parties in carrying out the action.
C. the value of the best opportunity that must be sacrificed in order to take the action.
D. the cost of all alternative actions that could have been taken, added together.
b - CORRECT ANSWER✅✅✅The opportunity cost of going to college is
A. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses.
B. the value of the best opportunity a student gives up to attend college.
C. zero for students who are fortunate enough to have all of their college expenses paid by someone
else.
D. zero, since a college education will allow a student to earn a larger income after graduation.
,B - CORRECT ANSWER✅✅✅point A is
A. unattainable.
B. inefficient.
C. efficient.
D. preferable to point B.
A - CORRECT ANSWER✅✅✅Mateo values his camper at $4,000, and Nicole values it at $9,000. If
Nicole buys it from Mateo for $7,000, which of the following is true?
A. Mateo gains $3,000 of value, and Nicole gains $2,000 of value.
B. Mateo gains $7,000 of value, and Nicole loses $7,000 of value.
C. Mateo gains $7,000 of value, and Nicole gains $6,000 of value.
D. Mateo and Nicole both gain $7,000 of value.
D - CORRECT ANSWER✅✅✅The production possibilities curve illustrates the basic principle that
A. an economy's capacity to produce is unrelated to its population.
B. if all the resources of an economy are being used efficiently, more of one good can be produced only
if more of another good is produced.
C. an economy will automatically move toward a point at which all of its resources are being used
inefficiently.
D. if all the resources of an economy are being used efficiently, more of one good can be produced only
if less of another good is produced.
B - CORRECT ANSWER✅✅✅The market for printed economic textbooks is in equilibrium. As incomes
rise, students buy fewer printed textbooks, and buy more e-books instead. You can conclude (ceteris
paribus) that...
A. printed textbooks are normal goods
B. printed textbooks are inferior goods.
C. printed textbooks are complements for e-books.
D. e-books are inferior goods.
, B - CORRECT ANSWER✅✅✅Consider the demand curve for blue jeans. The price of blue jeans goes
down. Ceteris paribus, which of the following will occur?
A. The quantity of blue jeans demanded falls.
B. The quantity of blue jeans demanded rises.
C. The demand for blue jeans falls.
D. The demand for blue jeans rises.
B - CORRECT ANSWER✅✅✅The Law of Demand is...
A. a law of nature, like the law of gravity.
B. a general tendency in human behavior.
C. mostly false, except in a few circumstances.
D. always true, but only for computer programs.
C - CORRECT ANSWER✅✅✅According to the law of supply,
A. more of a good is desired by consumers as the price falls.
B. less of a good is desired by consumers as the price rises.
C. more of a good will be offered by suppliers as the price rises.
D. less of a good will be offered by suppliers as the price rises.
A - CORRECT ANSWER✅✅✅Which of the following would most likely increase the supply of beef?
A. lower prices of grains used to feed cattle
B. lower prices for chicken, a substitute for beef
C. new medical research suggesting that beef causes more serious health problems than was previously
thought
D. an increase in the cost of transporting beef products to the consumer market
D - CORRECT ANSWER✅✅✅How will an increase in lumber prices influence the home construction
market?
A. The demand for newly constructed homes will increase.
