Economics Quiz Ultimate Exam!

1. Which of the following goods are in joint supply?

Deathclaw Meat and Deathclaw gauntlets

Purified water and dirty water

Carrots and Corn

Orange Mentats and Grape Mentats

Deathclaw Meat and Deathclaw gauntlets are in joint supply because they are both derived from the same source, which is the Deathclaw creature. The meat is obtained by killing the Deathclaw and can be used for consumption, while the gauntlets are made from the Deathclaw's claws and can be used as a weapon or armor. Since both goods come from the same origin and are produced together, they are considered to be in joint supply.

Explanation

Deathclaw Meat and Deathclaw gauntlets are in joint supply because they are both derived from the same source, which is the Deathclaw creature. The meat is obtained by killing the Deathclaw and can be used for consumption, while the gauntlets are made from the Deathclaw's claws and can be used as a weapon or armor. Since both goods come from the same origin and are produced together, they are considered to be in joint supply.

2. If the price for fusion core increases, the price for power armor also increases.

True

False

Fusion cores and power armor are complements. If fusion cores are more expensive, then demand of power armor should fall. Thus price per suit should also fall.

Explanation

Fusion cores and power armor are complements. If fusion cores are more expensive, then demand of power armor should fall. Thus price per suit should also fall.

3. If the Legion impose an effective quota on firearms import, the total social surplus will decrease.

True

False

If the Legion imposes an effective quota on firearms import, it means that they will limit the amount of firearms that can be imported into the country. This restriction on imports will reduce the availability of firearms in the market, leading to a decrease in supply. As a result, the equilibrium price of firearms will increase, and the quantity demanded will decrease. This decrease in quantity demanded will lead to a decrease in consumer surplus and producer surplus, resulting in a decrease in total social surplus. Therefore, the statement that the total social surplus will decrease is true.

Explanation

If the Legion imposes an effective quota on firearms import, it means that they will limit the amount of firearms that can be imported into the country. This restriction on imports will reduce the availability of firearms in the market, leading to a decrease in supply. As a result, the equilibrium price of firearms will increase, and the quantity demanded will decrease. This decrease in quantity demanded will lead to a decrease in consumer surplus and producer surplus, resulting in a decrease in total social surplus. Therefore, the statement that the total social surplus will decrease is true.

4. Study the following table:

Settlers	Tools	Food production	Marginal production
1	1	2	2
2	1	5	3
3	1	9	4
4	1	11	3

Diminishing Marginal returns occur when the _____ settler was assigned to the field

First

Second

Third

Fourth

The table shows the relationship between the number of settlers and the corresponding food production and marginal production. As the number of settlers increases, the food production initially increases, but at a decreasing rate. The marginal production, which represents the additional food production from adding one more settler, decreases from 2 to 3 to 4. This indicates diminishing marginal returns, where the additional output gained from each additional settler decreases. Therefore, the correct answer is "Fourth" settler.

Explanation

The table shows the relationship between the number of settlers and the corresponding food production and marginal production. As the number of settlers increases, the food production initially increases, but at a decreasing rate. The marginal production, which represents the additional food production from adding one more settler, decreases from 2 to 3 to 4. This indicates diminishing marginal returns, where the additional output gained from each additional settler decreases. Therefore, the correct answer is "Fourth" settler.

5. The Shi exports a lot of high-end electrics to the NCR. However, they rarely import anything from the outside world. Thus the Shi has trade deficit.

True

False

The Shi has a trade surplus as their net export is positive.

Explanation

The Shi has a trade surplus as their net export is positive.

6. (Continued from question 2) Which of the following will increase the cost of selling the wreck to the BoS?

The rust devils refuse to buy anything from you since you only have 1 Charisma

The Brotherhood of Steel is now offering 200 caps instead of 250 caps for the wreck

The local trader offers 75 caps instead of 50 caps for the wreck

You can now craft a new sentry bot using the wreck and sell the new robot for 3000 caps

Only the highest valued option forgone is included in the calculation of opportunity cost. In this case, rebuilding the sentry bot is now the highest valued option as it is worth more than simply selling the wreck.

Explanation

Only the highest valued option forgone is included in the calculation of opportunity cost. In this case, rebuilding the sentry bot is now the highest valued option as it is worth more than simply selling the wreck.

7. Let's get started with the basics: What is Economics?

The way to make lots of money/caps

Charts and graphs

The study of how societies and people use scarce resources to satisfy their unlimited wants

The study of the relationship between money, humans and societies

[INT 1] Wat's eeeee-coner-mics?

Economics is the study of how societies and individuals make choices to allocate scarce resources to fulfill their unlimited wants. It involves analyzing production, distribution, and consumption of goods and services. By understanding the principles of economics, individuals and societies can make informed decisions about resource allocation, trade-offs, and maximizing utility.

Explanation

Economics is the study of how societies and individuals make choices to allocate scarce resources to fulfill their unlimited wants. It involves analyzing production, distribution, and consumption of goods and services. By understanding the principles of economics, individuals and societies can make informed decisions about resource allocation, trade-offs, and maximizing utility.

8. Bottle caps are considered to be money in Fallout games. Which of the following is correct?

All economies needs money to function

Caps are considered to be a type of commodity money

Caps can be used as a unit of account

Bottle caps are not good money as they are backed by water instead of gold or silver

Barter Economy does not require money to function Caps are not commodity money as they worth little themselves. Instead they are backed by the value of water Bottle caps can be good money as long as it is a generally accepted medium of exchange

Explanation

Barter Economy does not require money to function Caps are not commodity money as they worth little themselves. Instead they are backed by the value of water Bottle caps can be good money as long as it is a generally accepted medium of exchange

9. Which of the following is a free good?

Stimpaks that are crafted by the Followers of the Apocalypse and given out for free

Sea water

Nuclear waste that you want to get rid of

Both A and B

Free good is not scarce but we prefer to have more than to have less.

Explanation

Free good is not scarce but we prefer to have more than to have less.

10. Rad-X increases the user's radiation resistance. This is particularly important for people living in the Commonwealth as radiation storms are both frequent and deadly. Trade caravans sometimes travel through the Commonwealth before moving on to other parts of the former United States. Such caravans typically sell Rad-X at Diamond City for 15 caps/dose. However, caravans sometimes sell faulty merchandise. You are a long-standing resident of Diamond City and open up a store to sell Rad-X. Which of the following prices is likely to be the most profitable for you?

Charge 12 caps for one dose of Rad-X

Charge 15 caps/dose

Charge 17 caps/dose

Let the buyer set the price

As you are a permanent store you are able to develop a reputation for quality, so will have customers willing to pay a higher price than the less reliable caravans.

Explanation

As you are a permanent store you are able to develop a reputation for quality, so will have customers willing to pay a higher price than the less reliable caravans.

11. To deal with the influx of refugees, the NCR imposed a price ceiling for food. What will most likely happen?

Black markets that sell food for a lower price will emerge

More people will get food as the price of food now drops to a record low

Non-price allocation methods will be replaced by price competition

Producer surplus will decrease

Black markets that sell food for a lower price will not emerge. Instead a Black market that sell food for a higher-than-legal price will emerge

Explanation

Black markets that sell food for a lower price will not emerge. Instead a Black market that sell food for a higher-than-legal price will emerge

12. It is found that the Institute has a higher GDP per capita than Vault 81. What can be deduced from this?

People living in the Institute must enjoy a higher standard of living relative to inhabitants of vault 81

There are less people living in the Institute than vault 81

Goods from the institute are generally more expensive comparing to goods from vault 81

None of the above

not-available-via-ai

Explanation

not-available-via-ai

13. There are a lot of Chem vendors in the Capital Wasteland. Some of them sell high-quality chems with high purity. Others sell chems in a slightly cheaper price. From above, what is the market structure of Chem trade in the Capital Wasteland?

Perfect competition

Monopolistic competition

Oligopoly

Monopoly

The market structure of chem trade in the Capital Wasteland is monopolistic competition. This is because there are multiple chem vendors selling similar but slightly differentiated products (high-quality chems with high purity or slightly cheaper chems). In monopolistic competition, there are many sellers with differentiated products, allowing for some control over pricing and the ability to differentiate their products through branding or product features. However, there is still competition among the sellers due to the availability of substitutes.

Explanation

The market structure of chem trade in the Capital Wasteland is monopolistic competition. This is because there are multiple chem vendors selling similar but slightly differentiated products (high-quality chems with high purity or slightly cheaper chems). In monopolistic competition, there are many sellers with differentiated products, allowing for some control over pricing and the ability to differentiate their products through branding or product features. However, there is still competition among the sellers due to the availability of substitutes.

14. The following table shows the number of man-hours needed for vault 101 and Megaton to produce one 10mm pistol and one Laser rifle:

	Vault 101	Megaton
10mm pistol	10 man-hours	20 man-hours
Laser Rifle	50 man-hours	400 man-hours

If Vault 101 starts trading with Megaton, what should they import?

Nothing. They are more efficient in producing both items so they should make both for themselves

10mm pistol

Laser rifle

They should import both weapons as they can ask for a lower price

Vault 101 should import nothing because they are more efficient in producing both the 10mm pistol and the Laser rifle. They can produce the 10mm pistol in 10 man-hours compared to Megaton's 20 man-hours, indicating that Vault 101 has a comparative advantage in producing the 10mm pistol. Therefore, they should focus on producing the 10mm pistol themselves rather than importing it from Megaton.

Explanation

Vault 101 should import nothing because they are more efficient in producing both the 10mm pistol and the Laser rifle. They can produce the 10mm pistol in 10 man-hours compared to Megaton's 20 man-hours, indicating that Vault 101 has a comparative advantage in producing the 10mm pistol. Therefore, they should focus on producing the 10mm pistol themselves rather than importing it from Megaton.

15. Question 4 to 6 refers to the scenario below: The courier retrieved valuable agricultural data from Vault 22 and the NCR was able to use the data to increase food production. Meanwhile, the Second Battle of Hoover Dam raged on and thousands of refugees were evacuated to California to avoid the advancing Legion troops. Which of the following must be true for the food market in California?

The quantity supplied of food increases

Supply of food increases

The equilibrium price of food in California increases

The quantity transected decreases

Quantity supplied is only affected by price. This is a case of increase in supply instead

There is no enough to determine the equilibrium price of food. If the increase in demand for food is higher than the increase in supply of food, then the price may fall.

Quantity transected will increase.

Explanation

Quantity supplied is only affected by price. This is a case of increase in supply instead

There is no enough to determine the equilibrium price of food. If the increase in demand for food is higher than the increase in supply of food, then the price may fall.

Quantity transected will increase.

16. You have just destroyed a sentry bot and you can now do one of the following: Option 1: Sell its wreck to a local trader for 50 caps Option 2: Sell its wreck to the rust devils (a raider gang that use robots) for 100 caps Option 3: Sell its wreck to the Brotherhood of Steel for 250 caps What will the opportunity cost be if you sell the wreck to the Brotherhood of Steel?

50 caps

100 caps

150 caps

250 caps

Opportunity cost is the highest valued option forgone. In this case it will be option 2. The 100 caps is considered income forgone.

Explanation

Opportunity cost is the highest valued option forgone. In this case it will be option 2. The 100 caps is considered income forgone.

17. If the Nuka-Cola Corporation successfully take over a fast-food restaurant chain, which type of expansion is involved?

Horizontal expansion

Lateral expansion

Vertical expansion

Conglomerate expansion

Vertical expansion refers to the growth of a company by acquiring or merging with businesses that are part of its supply chain or distribution network. In this case, if the Nuka-Cola Corporation takes over a fast-food restaurant chain, it would involve vertical expansion as they would be expanding their operations in the same industry but at a different stage of the supply chain. This allows them to have more control over production, distribution, and sales, resulting in increased efficiency and profitability.

Explanation

Vertical expansion refers to the growth of a company by acquiring or merging with businesses that are part of its supply chain or distribution network. In this case, if the Nuka-Cola Corporation takes over a fast-food restaurant chain, it would involve vertical expansion as they would be expanding their operations in the same industry but at a different stage of the supply chain. This allows them to have more control over production, distribution, and sales, resulting in increased efficiency and profitability.

18. Which of the following is included as a part of the NCR's GDP?

President Kimball's salary

The earnings of a NCR citizen working in the capital wasteland

The price of second-hand medical equipment sold to the Followers of the Apocalypse operating in NCR territory

A Brotherhood of Steel paladin buying a laser pistol from a black market based in California

President Kimball's salary is included as a part of the NCR's GDP because GDP measures the total value of all goods and services produced within a country's borders during a specific time period. As the president of the NCR, Kimball's salary represents a service provided by the government, which contributes to the overall economic output of the country.

Explanation

President Kimball's salary is included as a part of the NCR's GDP because GDP measures the total value of all goods and services produced within a country's borders during a specific time period. As the president of the NCR, Kimball's salary represents a service provided by the government, which contributes to the overall economic output of the country.