EXAM 1 ECONOMICS 110 AL-HAMDI
KSU (50 QUESTION
VERSION)QUESTIONS WITH
CORRECT ANSWERS!!
Scarcity refers to the situation in which - ANSWERunlimited wants exceed limited
resources.
Refer to Table above.
Using marginal analysis, how many hours should Eva extend her bakery's hours of
operations? She hires a worker for every hour she opens for $8 an hour. -
ANSWER5 hours (Similar to Homework 1, #9)
Opportunity cost is defined as - ANSWERthe highest valued alternative that must be
given up to engage in an activity.
When every good or service is produced up to the point where the last unit provides
a marginal benefit to society equal to the marginal cost of producing it, ________
occurs. - ANSWERAllocative efficiency
The branch of economics which studies the behavior of entire economies and
policies that affect the economy as a whole is called - ANSWERmacroeconomics.
Human capital refers to - ANSWERthe accumulated skills and training workers have.
Refer to Figure above. A decrease in the number of firms in the market would be
represented by a movement from - ANSWERS2 to S1. (shift in supply curve, shift to
left is a decrease in supply)
An increase in the price of MP3 players will result in - ANSWERa larger quantity of
MP3 players supplied.
Refer to Figure above. If the current market price is $25, the market will achieve
equilibrium by - ANSWERa price increase, increasing the quantity supplied and
decreasing the quantity demanded.
Which of the following statements is true? - ANSWERA curved line has slope values
that change at every point.
The decision about what goods and services will be produced in a market economy
is made by - ANSWERconsumers and firms choosing which goods and services to
buy or produce.
KSU (50 QUESTION
VERSION)QUESTIONS WITH
CORRECT ANSWERS!!
Scarcity refers to the situation in which - ANSWERunlimited wants exceed limited
resources.
Refer to Table above.
Using marginal analysis, how many hours should Eva extend her bakery's hours of
operations? She hires a worker for every hour she opens for $8 an hour. -
ANSWER5 hours (Similar to Homework 1, #9)
Opportunity cost is defined as - ANSWERthe highest valued alternative that must be
given up to engage in an activity.
When every good or service is produced up to the point where the last unit provides
a marginal benefit to society equal to the marginal cost of producing it, ________
occurs. - ANSWERAllocative efficiency
The branch of economics which studies the behavior of entire economies and
policies that affect the economy as a whole is called - ANSWERmacroeconomics.
Human capital refers to - ANSWERthe accumulated skills and training workers have.
Refer to Figure above. A decrease in the number of firms in the market would be
represented by a movement from - ANSWERS2 to S1. (shift in supply curve, shift to
left is a decrease in supply)
An increase in the price of MP3 players will result in - ANSWERa larger quantity of
MP3 players supplied.
Refer to Figure above. If the current market price is $25, the market will achieve
equilibrium by - ANSWERa price increase, increasing the quantity supplied and
decreasing the quantity demanded.
Which of the following statements is true? - ANSWERA curved line has slope values
that change at every point.
The decision about what goods and services will be produced in a market economy
is made by - ANSWERconsumers and firms choosing which goods and services to
buy or produce.
