EKN 110 Exam Questions and Answers Already Passed
Economics is a social science concerned with - Answers the best use of scarce resources to
achieve the maximum satisfaction of economic wants
Economics may best be defined as the - Answers social science concerned with how individuals,
institutions, and society make optimal choices under conditions of scarcity
The study of economics is primarily concerned with - Answers choices that are made in seeking
the best use of resources
The assertion that "there is no free lunch" means that - Answers 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 -
Answers Utility
Alex sees that his neighbors lawns all need mowing. For $20 per hour, Economics would
describe Alex's behavior as: - Answers 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 - Answers most decisions involve changes from
the present situation
A person should consume more of something when its marginal: - Answers 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: - Answers 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: - Answers scientific method
An economic hypothesis - Answers possible explanation of cause and effect
A well-tested economic theory is often called - Answers principle/law
Which is an illustration of a microeconomics question? - Answers Will a new type of television
set increase the number of buyers?
Microeconomics is concerned with - Answers a detailed examinations of specific economic
units that make up the economic system
Microeconomics - Answers concerned with individual economic units and specific markets
The problems of aggregate inflation and employment are - Answers major topics of
, macroeconomics
Which of the following is a microeconomics statement? - Answers The price of personal
computers declined last year
A normative statement is one that - Answers is based on value judgements
Ben says that "increase in the tax on beer will raise its price." Holly argues "taxes should be
increased on beer because college students drink too much" - Answers Holly's statement is
normative, but Ben's is positive
In deciding whether to study for an economics quiz or go to a movie, one is confronted by the
ideas of - Answers scarcity and opportunity costs
Which of the following most closely relates to the idea of opportunity costs? - Answers
tradeoffs
The budget line shows - Answers 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? - Answers make routine
pricing decisions
Which of the following is real capital? - Answers a savings account
Which of the following are an economic resources? - Answers 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 - Answers True
On a production possibilities curve, the single optimal or best combination of output for any
society: - Answers Depends upon the preferences of society
The production possibilities curve - Answers 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 - Answers that more output could
be produced with available resources
Unemployment - Answers is illustrated by a point inside the production possibilities curve
If we say that two variables are directly related, this means that - Answers an increase in one
variable is associated with an increase in other variable
Economists - Answers are somewhat arbitrary in assigning independent and dependent
variables to the horizontal and vertical axes
Which of the following statements is correct? - Answers The value of the dependent variable is
Economics is a social science concerned with - Answers the best use of scarce resources to
achieve the maximum satisfaction of economic wants
Economics may best be defined as the - Answers social science concerned with how individuals,
institutions, and society make optimal choices under conditions of scarcity
The study of economics is primarily concerned with - Answers choices that are made in seeking
the best use of resources
The assertion that "there is no free lunch" means that - Answers 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 -
Answers Utility
Alex sees that his neighbors lawns all need mowing. For $20 per hour, Economics would
describe Alex's behavior as: - Answers 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 - Answers most decisions involve changes from
the present situation
A person should consume more of something when its marginal: - Answers 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: - Answers 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: - Answers scientific method
An economic hypothesis - Answers possible explanation of cause and effect
A well-tested economic theory is often called - Answers principle/law
Which is an illustration of a microeconomics question? - Answers Will a new type of television
set increase the number of buyers?
Microeconomics is concerned with - Answers a detailed examinations of specific economic
units that make up the economic system
Microeconomics - Answers concerned with individual economic units and specific markets
The problems of aggregate inflation and employment are - Answers major topics of
, macroeconomics
Which of the following is a microeconomics statement? - Answers The price of personal
computers declined last year
A normative statement is one that - Answers is based on value judgements
Ben says that "increase in the tax on beer will raise its price." Holly argues "taxes should be
increased on beer because college students drink too much" - Answers Holly's statement is
normative, but Ben's is positive
In deciding whether to study for an economics quiz or go to a movie, one is confronted by the
ideas of - Answers scarcity and opportunity costs
Which of the following most closely relates to the idea of opportunity costs? - Answers
tradeoffs
The budget line shows - Answers 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? - Answers make routine
pricing decisions
Which of the following is real capital? - Answers a savings account
Which of the following are an economic resources? - Answers 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 - Answers True
On a production possibilities curve, the single optimal or best combination of output for any
society: - Answers Depends upon the preferences of society
The production possibilities curve - Answers 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 - Answers that more output could
be produced with available resources
Unemployment - Answers is illustrated by a point inside the production possibilities curve
If we say that two variables are directly related, this means that - Answers an increase in one
variable is associated with an increase in other variable
Economists - Answers are somewhat arbitrary in assigning independent and dependent
variables to the horizontal and vertical axes
Which of the following statements is correct? - Answers The value of the dependent variable is
