EKN 110 EXAM QUESTIONS AND ANSWERS
Economics is a social science concerned with - Answer -the best use of scarce
resources to achieve the maximum satisfaction of economic wants
Economics may best be defined as the - Answer -social science concerned with how
individuals, institutions, and society make optimal choices under conditions of scarcity
The study of economics is primarily concerned with - Answer -choices that are made in
seeking the best use of resources
The assertion that "there is no free lunch" means that - Answer -all production involves
the use of scarce resources and thus the sacrifice of alternative goods
In economics, the pleasure, happiness, or satisfaction received from a product is called
- Answer -Utility
Alex sees that his neighbors lawns all need mowing. For $20 per hour, Economics
would describe Alex's behavior as: - Answer -Rational self-interest, because he's
attempting to increase his own income by identifying and satisfying someone else's
wants
Economics involves marginal analysis because - Answer -most decisions involve
changes from the present situation
A person should consume more of something when its marginal: - Answer -benefit
exceeds its marginal costs
Kara was out jogging and despite being tired, decided to one more mile. Based on her
actions, economists would conclude: - Answer -decided that the marginal benefit of
running one more mile would outweigh the cost of the additional mile
The process by which economists test hypotheses against facts to develop theories,
principles, and models is called: - Answer -scientific method
An economic hypothesis - Answer -possible explanation of cause and effect
A well-tested economic theory is often called - Answer -principle/law
Which is an illustration of a microeconomics question? - Answer -Will a new type of
television set increase the number of buyers?
Microeconomics is concerned with - Answer -a detailed examinations of specific
economic units that make up the economic system
, Microeconomics - Answer -concerned with individual economic units and specific
markets
Which of the following most closely relates to the idea of opportunity costs? - Answer -
tradeoffs
The budget line shows - Answer -all possible combinations of two goods that can be
purchased, given money income and the prices of the goods
Which of the following is not a main function of the entrepreneur? - Answer -make
routine pricing decisions
Which of the following is real capital? - Answer -a savings account
Which of the following are an economic resources? - Answer -A bulldozer for a
construction company and a new factory building for making ice cream, A collage
English professor
A point on the PPC indicates that all resources are put to full use in the economy -
Answer -True
On a production possibilities curve, the single optimal or best combination of output for
any society: - Answer -Depends upon the preferences of society
The production possibilities curve - Answer -is a frontier between all combinations of
two goods that can be produced and those combinations that cannot be produced
Any point inside the production possibilities curve indicates - Answer -that more output
could be produced with available resources
Unemployment - Answer -is illustrated by a point inside the production possibilities
curve
If we say that two variables are directly related, this means that - Answer -an increase
in one variable is associated with an increase in other variable
Economists - Answer -are somewhat arbitrary in assigning independent and dependent
variables to the horizontal and vertical axes
Which of the following statements is correct? - Answer -The value of the dependent
variable is determined by the value of the independent variable
The lope of a line parallel to the horizontal axis is - Answer -Zero
If we say that two variables are inversely related, this means that - Answer -an increase
in one variable is associated with a decrease with the other
Economics is a social science concerned with - Answer -the best use of scarce
resources to achieve the maximum satisfaction of economic wants
Economics may best be defined as the - Answer -social science concerned with how
individuals, institutions, and society make optimal choices under conditions of scarcity
The study of economics is primarily concerned with - Answer -choices that are made in
seeking the best use of resources
The assertion that "there is no free lunch" means that - Answer -all production involves
the use of scarce resources and thus the sacrifice of alternative goods
In economics, the pleasure, happiness, or satisfaction received from a product is called
- Answer -Utility
Alex sees that his neighbors lawns all need mowing. For $20 per hour, Economics
would describe Alex's behavior as: - Answer -Rational self-interest, because he's
attempting to increase his own income by identifying and satisfying someone else's
wants
Economics involves marginal analysis because - Answer -most decisions involve
changes from the present situation
A person should consume more of something when its marginal: - Answer -benefit
exceeds its marginal costs
Kara was out jogging and despite being tired, decided to one more mile. Based on her
actions, economists would conclude: - Answer -decided that the marginal benefit of
running one more mile would outweigh the cost of the additional mile
The process by which economists test hypotheses against facts to develop theories,
principles, and models is called: - Answer -scientific method
An economic hypothesis - Answer -possible explanation of cause and effect
A well-tested economic theory is often called - Answer -principle/law
Which is an illustration of a microeconomics question? - Answer -Will a new type of
television set increase the number of buyers?
Microeconomics is concerned with - Answer -a detailed examinations of specific
economic units that make up the economic system
, Microeconomics - Answer -concerned with individual economic units and specific
markets
Which of the following most closely relates to the idea of opportunity costs? - Answer -
tradeoffs
The budget line shows - Answer -all possible combinations of two goods that can be
purchased, given money income and the prices of the goods
Which of the following is not a main function of the entrepreneur? - Answer -make
routine pricing decisions
Which of the following is real capital? - Answer -a savings account
Which of the following are an economic resources? - Answer -A bulldozer for a
construction company and a new factory building for making ice cream, A collage
English professor
A point on the PPC indicates that all resources are put to full use in the economy -
Answer -True
On a production possibilities curve, the single optimal or best combination of output for
any society: - Answer -Depends upon the preferences of society
The production possibilities curve - Answer -is a frontier between all combinations of
two goods that can be produced and those combinations that cannot be produced
Any point inside the production possibilities curve indicates - Answer -that more output
could be produced with available resources
Unemployment - Answer -is illustrated by a point inside the production possibilities
curve
If we say that two variables are directly related, this means that - Answer -an increase
in one variable is associated with an increase in other variable
Economists - Answer -are somewhat arbitrary in assigning independent and dependent
variables to the horizontal and vertical axes
Which of the following statements is correct? - Answer -The value of the dependent
variable is determined by the value of the independent variable
The lope of a line parallel to the horizontal axis is - Answer -Zero
If we say that two variables are inversely related, this means that - Answer -an increase
in one variable is associated with a decrease with the other
