Econ 201 Exam questions with
answers well graded 100%
Because people's wants are unlimited but resources are scarce, - ANS✅✅choices must be made
An economist would classify 100 shares of Apple Computer stock as capital. - ANS✅✅False
Goods and services are scarce because - ANS✅✅they are produced using scarce resources
Households - ANS✅✅Own and sell resources
Rational economic decision makers will make a change only if - ANS✅✅The expected marginal
benefit exceeds expected marginal cost
In economics, marginal means - ANS✅✅incremental or decremental
most economists consider a theory a good one if it predicts well. - ANS✅✅True
Economics employs a scientific methodology. In part, this means that - ANS✅✅economic
hypotheses are tested to determine their validity
Which of the following is not a part of the scientific method in economics? - ANS✅✅Normative
statements
A normative economic statement - ANS✅✅is a statement of what ought to be, not what is
When labor is relatively expensive, as it is in Japan - ANS✅✅businesses will substitute capital --
such as vending machines -- in place of labor
Which of the following is not an example of the fallacy of composition? - ANS✅✅If the best TV
reception can be gotten with a Couch Potato antenna, then everyone should have a Couch Potato
antenna.
, Step one in the scientific method is - ANS✅✅identify the question and define relevant variables
Your opportunity cost of choosing a particular activity - ANS✅✅varies, depending on time and
circumstances
A test was scheduled for Monday morning, but you went to a party on Saturday night. If you hadn't
attended the party, you could have studied for the test or gone to a movie. Which of the following is
true? - ANS✅✅From the above information, it's not possible to determine the opportunity cost of
attending the party.
It is possible for one person to have a comparative advantage in the production of all products? -
ANS✅✅False
It is possible for one person to have an absolute advantage in something even if she has no
comparative advantage in anything. - ANS✅✅False
Barter is - ANS✅✅the direct exchange of goods, without the use of money
The "division of labor" refers to - ANS✅✅separating a job into smaller tasks completed by
different people
https://moodle2016.coastal.edu/pluginfile.php/176806/question/questiontext/
216664/23/337864/Exhibit%202-3.png
Society's production possibilities frontier - ANS✅✅is based on simplifying assumptions, but is still
useful for illustrating scarcity, opportunity cost, and economic growth Correct
The law of increasing opportunity cost reflects the fact that - ANS✅✅resources are not perfectly
substitutable
Which of the following would not shift the production possibilities frontier? - ANS✅✅a change to a
more inefficient production process
The set of mechanisms and institutions that resolve the basic economic questions is called the -
ANS✅✅economic system
answers well graded 100%
Because people's wants are unlimited but resources are scarce, - ANS✅✅choices must be made
An economist would classify 100 shares of Apple Computer stock as capital. - ANS✅✅False
Goods and services are scarce because - ANS✅✅they are produced using scarce resources
Households - ANS✅✅Own and sell resources
Rational economic decision makers will make a change only if - ANS✅✅The expected marginal
benefit exceeds expected marginal cost
In economics, marginal means - ANS✅✅incremental or decremental
most economists consider a theory a good one if it predicts well. - ANS✅✅True
Economics employs a scientific methodology. In part, this means that - ANS✅✅economic
hypotheses are tested to determine their validity
Which of the following is not a part of the scientific method in economics? - ANS✅✅Normative
statements
A normative economic statement - ANS✅✅is a statement of what ought to be, not what is
When labor is relatively expensive, as it is in Japan - ANS✅✅businesses will substitute capital --
such as vending machines -- in place of labor
Which of the following is not an example of the fallacy of composition? - ANS✅✅If the best TV
reception can be gotten with a Couch Potato antenna, then everyone should have a Couch Potato
antenna.
, Step one in the scientific method is - ANS✅✅identify the question and define relevant variables
Your opportunity cost of choosing a particular activity - ANS✅✅varies, depending on time and
circumstances
A test was scheduled for Monday morning, but you went to a party on Saturday night. If you hadn't
attended the party, you could have studied for the test or gone to a movie. Which of the following is
true? - ANS✅✅From the above information, it's not possible to determine the opportunity cost of
attending the party.
It is possible for one person to have a comparative advantage in the production of all products? -
ANS✅✅False
It is possible for one person to have an absolute advantage in something even if she has no
comparative advantage in anything. - ANS✅✅False
Barter is - ANS✅✅the direct exchange of goods, without the use of money
The "division of labor" refers to - ANS✅✅separating a job into smaller tasks completed by
different people
https://moodle2016.coastal.edu/pluginfile.php/176806/question/questiontext/
216664/23/337864/Exhibit%202-3.png
Society's production possibilities frontier - ANS✅✅is based on simplifying assumptions, but is still
useful for illustrating scarcity, opportunity cost, and economic growth Correct
The law of increasing opportunity cost reflects the fact that - ANS✅✅resources are not perfectly
substitutable
Which of the following would not shift the production possibilities frontier? - ANS✅✅a change to a
more inefficient production process
The set of mechanisms and institutions that resolve the basic economic questions is called the -
ANS✅✅economic system
