Peregrine Exam Economics Review Quiz
No choice is free because __________?
Options:
- Resources are unlimited
- Resources vary by economy
- Resources are limited
- Resources are constant over time - answers- Resources are limited
Choose the economic concept that best fits the question or statement: I've already done
45 minutes of exercises; how many more calories will I get rid of if I exercise for another
10 minutes?
Options:
- Average Production (or Productivity)
- Marginal Thinking
- Opportunity Cost - answers- Marginal Thinking
The Law of Demand can be explained as __________.
Options:
- A lot of people wanting the same thing
- The higher the price, the smaller the quantity demanded, ceteris paribus
- People are willing to make limited sacrifices to acquire products
- Legal reasons people make purchases in the marketplace - answers- The higher the
price, the smaller the quantity demanded, ceteris paribus
The law of supply states that __________.
, Options:
- Producers should produce what they can sell, but only sometimes
- Producers should only sell goods when the price is low
- There is a positive relationship between price and quantity supplied, ceteris paribus
- Producers are legally required to make necessary goods available in the marketplace -
answers- There is a positive relationship between price and quantity supplied, ceteris
paribus
Real GDP will increase if:
Options:
- The price level increases by more than the increase in the quantity of final goods and
services from the base year to today
- The price level and quantity of final goods and services decrease equally from the
base year to today
- The quantity of final goods and services remains the same as it was in the base year,
while the price level increases from the base year price level to today
- The price level today remains the same as it was in the base year, while the quantity
of final goods and services increases from the base year to today - answers- The price
level increases by more than the increase in the quantity of final goods and services
from the base year to today
Which GDP Component is best associated with this activity?: The State of Idaho
constructs a new wing to one of its office buildings downtown.
Options:
- "C" Component
- "G" Component
- "I" Component
- "NX" Component - answers- "G" Component
Which GDP Component is best associated with this activity?: A farmer purchases a new
tractor for the their use.
Options:
- "C" Component
- "G" Component
- "I" Component
- "NX" Component - answers- "I" Component
Which activity is included in GDP?
Options:
- The bread Subway buys to use for making and selling its sandwiches
- The tomatoes Subway puts on a sandwich it will then sell
- The sale of the finished sandwich
No choice is free because __________?
Options:
- Resources are unlimited
- Resources vary by economy
- Resources are limited
- Resources are constant over time - answers- Resources are limited
Choose the economic concept that best fits the question or statement: I've already done
45 minutes of exercises; how many more calories will I get rid of if I exercise for another
10 minutes?
Options:
- Average Production (or Productivity)
- Marginal Thinking
- Opportunity Cost - answers- Marginal Thinking
The Law of Demand can be explained as __________.
Options:
- A lot of people wanting the same thing
- The higher the price, the smaller the quantity demanded, ceteris paribus
- People are willing to make limited sacrifices to acquire products
- Legal reasons people make purchases in the marketplace - answers- The higher the
price, the smaller the quantity demanded, ceteris paribus
The law of supply states that __________.
, Options:
- Producers should produce what they can sell, but only sometimes
- Producers should only sell goods when the price is low
- There is a positive relationship between price and quantity supplied, ceteris paribus
- Producers are legally required to make necessary goods available in the marketplace -
answers- There is a positive relationship between price and quantity supplied, ceteris
paribus
Real GDP will increase if:
Options:
- The price level increases by more than the increase in the quantity of final goods and
services from the base year to today
- The price level and quantity of final goods and services decrease equally from the
base year to today
- The quantity of final goods and services remains the same as it was in the base year,
while the price level increases from the base year price level to today
- The price level today remains the same as it was in the base year, while the quantity
of final goods and services increases from the base year to today - answers- The price
level increases by more than the increase in the quantity of final goods and services
from the base year to today
Which GDP Component is best associated with this activity?: The State of Idaho
constructs a new wing to one of its office buildings downtown.
Options:
- "C" Component
- "G" Component
- "I" Component
- "NX" Component - answers- "G" Component
Which GDP Component is best associated with this activity?: A farmer purchases a new
tractor for the their use.
Options:
- "C" Component
- "G" Component
- "I" Component
- "NX" Component - answers- "I" Component
Which activity is included in GDP?
Options:
- The bread Subway buys to use for making and selling its sandwiches
- The tomatoes Subway puts on a sandwich it will then sell
- The sale of the finished sandwich
