Bonus Exam For Intoeco L81, T1, Ay2010-11

25 Questions | Total Attempts: 60

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Money Quizzes & Trivia

This is the bonus quiz for INTOECO L81 T1, AY2010-11 class.


Questions and Answers
  • 1. 
    Markets...
    • A. 

      Are places

    • B. 

      Are exchanges between buyers and sellers

    • C. 

      Are means of allocating resources

    • D. 

      All of the above

  • 2. 
    The basic coordinating mechanism in a market is...
    • A. 

      Quantity

    • B. 

      Price

    • C. 

      Government

    • D. 

      Corporation

  • 3. 
    Which of the following statements is the best definition of economics?
    • A. 

      The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided

    • B. 

      The study of how consumers spend their income

    • C. 

      The study of how business firms decide what inputs to hire and what outputs to produce

    • D. 

      The study of how the government allocates tax revenues

  • 4. 
    The study of economics...
    • A. 

      Is a very narrow endeavor

    • B. 

      Is a way of analyzing decision-making processes caused by scarcity.

    • C. 

      Is concerned with proving that capitalism is better than socialism.

    • D. 

      Focuses on how a business should function.

  • 5. 
    The reason that opportunity costs arise is that…
    • A. 

      An economy relies on money to facilitate exchange of goods and services.

    • B. 

      There are no alternative decisions that could be made

    • C. 

      Resources are scarce

    • D. 

      People have limited wants

  • 6. 
    You own the complete Star Wars DVD set. The opportunity cost of watching these DVDs for the second time…
    • A. 

      Is zero.

    • B. 

      Is one-half the cost of the DVDs, as this is the second time you have watched it.

    • C. 

      Is the value of the alternative use of the time you spend watching the DVDs.

    • D. 

      Cannot be calculated

  • 7. 
    If information is less costly and more easily available, then usually this…
    • A. 

      Makes markets more efficient.

    • B. 

      Makes markets less efficient.

    • C. 

      Increases profit opportunities

    • D. 

      Increases the opportunity cost of acquiring more information.

  • 8. 
    An efficient market is characterized by the fact that…
    • A. 

      Output is steady or growing and there is low inflation.

    • B. 

      Profit opportunities are eliminated almost instantaneously.

    • C. 

      There are no opportunity costs.

    • D. 

      Wealth is distributed fairly

  • 9. 
    An efficient economy is an economy...
    • A. 

      In which output is steady or growing and there is low inflation.

    • B. 

      That produces what consumers demand and does so at the least possible cost.

    • C. 

      That distributes output equally among all consumers

    • D. 

      In which there is a fair distribution of wealth

  • 10. 
    The four criteria that are frequently used in judging the outcome of economic policy are...
    • A. 

      Efficiency, equity, profitability, and stability.

    • B. 

      Efficiency, equality, stability, and economic growth.

    • C. 

      Efficiency, equality, profitability, and stability.

    • D. 

      Efficiency, equity, stability, and economic growth.

  • 11. 
    A price ceiling...
    • A. 

      Is always above equilibrium price

    • B. 

      Creates excess demand

    • C. 

      Provides incentives for sellers to produce more

    • D. 

      Is effectively the same as a price floor

  • 12. 
    A price floor...
    • A. 

      Is always above equilibrium price

    • B. 

      Creates excess demand

    • C. 

      Provides incentives for buyers to purchase more

    • D. 

      Is effectively the same as a price ceiling

  • 13. 
    According to the theory of comparative advantage, specialization and free trade will benefit…
    • A. 

      Only that trading party that has both an absolute advantage and a comparative advantage in the production of all goods.

    • B. 

      All trading parties, even when some are absolutely more efficient producers than others.

    • C. 

      Only that trading party that has an absolute advantage in the production of all goods.

    • D. 

      Only that trading party that has a comparative advantage in the production of all goods.

  • 14. 
    Someone has a comparative advantage in producing a good if they can produce that good…
    • A. 

      In greater quantities.

    • B. 

      Without sunk costs.

    • C. 

      Using more capital and less labor.

    • D. 

      At a lower opportunity cost.

  • 15. 
    Which of the following statements is true?
    • A. 

      The basic coordinating mechanism in a free market is quantity adjustments toward equilibrium.

    • B. 

      In a free market system, competition leads to inefficiency.

    • C. 

      Individuals, guided by their own self-interest, will produce goods and services that other people want

    • D. 

      There is no role for any government in any market, as intervening will only create uncertainty.

  • 16. 
    Which of the following instances is a market failure?
    • A. 

      An oil company paying citizens for damages caused by an oil spill

    • B. 

      Getting a free cellphone with a camera you just bought

    • C. 

      Passers-by enjoying the view of fireworks launched for a nearby invitation-only event

    • D. 

      All of the above

    • E. 

      None of the above

  • 17. 
    A price increase can increase or decrease revenues for a producer, depending on the elasticity of demand for the product.
    • A. 

      True

    • B. 

      False

    • C. 

      It depends

  • 18. 
    Which of the following will NOT cause a shift in the demand curve for audio CDs?
    • A. 

      A change in income

    • B. 

      A change in people’s preferences for CDs

    • C. 

      A change in the price of CDs

    • D. 

      A change in the price of downloading music online

  • 19. 
    The law of demand states that…
    • A. 

      As prices fall, demand increases

    • B. 

      As prices rise, demand increases

    • C. 

      As prices fall, quantity demanded increases

    • D. 

      As prices fall, quantity demanded decreases

  • 20. 
    As an individual consumes more of a product within a given period of time, it is likely that each additional unit consumed will yield…
    • A. 

      Successively less satisfaction.

    • B. 

      Successively more satisfaction.

    • C. 

      The same amount of satisfaction.

    • D. 

      Less satisfaction for a while and then start to add more satisfaction.

  • 21. 
    A frozen food manufacturer can produce either pizzas or calzones. As the result of an increase in the price of calzones, the firm produces more calzones and fewer pizzas. An economist would explain this by saying…
    • A. 

      The supply of calzones increased and the supply of pizzas decreased.

    • B. 

      There has been an increase in the quantity supplied of calzones and a decrease in the quantity supplied of pizzas.

    • C. 

      There has been an increase in the quantity supplied of calzones and a decrease in the supply of pizza.

    • D. 

      The supply of calzones increased and the quantity supplied of pizza decreased.

  • 22. 
    Which of the following topics concern macroeconomics?
    • A. 

      Impact on Southeast Asian economies of a sudden oil price decrease

    • B. 

      President Aquino’s preference not to travel overseas as much as possible

    • C. 

      Your decision to take this bonus quiz

    • D. 

      The near- and long-term prospects of the local call center industry

  • 23. 
    Yearly nominal GDP figures are used to track the country’s economic performance.
    • A. 

      True

    • B. 

      False

    • C. 

      It depends

  • 24. 
    The labor force includes…
    • A. 

      "Discouraged workers,” or those who are no longer looking for work

    • B. 

      Undergraduate and full-time graduate (Master’s and Ph.D./doctoral) students

    • C. 

      Unpaid family business workers

    • D. 

      Every Filipino, regardless of age, who is employed or has work

  • 25. 
    Which of the following individuals should be classified as unemployed?
    • A. 

      A student working as a call center agent during evenings

    • B. 

      A retired professor who just completed a consulting project

    • C. 

      A child actor awaiting the final details of his contract

    • D. 

      A 30-year old professional basketball player without a sports team

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