Econ 111 - Refresher

40 Questions | Total Attempts: 40

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Econ 111 - Refresher

A refresher for the upcoming test for Economics


Questions and Answers
  • 1. 
    Economics is the study of the allocation of free goods.
    • A. 

      True

    • B. 

      False

  • 2. 
    Which of these is NOT a factor of production?
    • A. 

      Event

    • B. 

      Land

    • C. 

      Labor

    • D. 

      Capital

  • 3. 
    Which BEST defines equity in the definition of economics?
    • A. 

      Is the allocation of resources based on the need.

    • B. 

      Is the equal allocation of resources to both poor and rich.

    • C. 

      Everyone is a common recipient of the resources of the society.

    • D. 

      All human beings are subject to same amount of resources.

  • 4. 
    Identify the economic system in this situation:The governement of Soseqsui controls all the resources and has the capacity to manipulate these resources, and the government has the capacity to allocate it on what they deem just.
  • 5. 
    Identify the economic system in this situation:Vyanaira owns a bakeshop and she also has a coffee shop. Marcus runs his own chain of restaurants. Eyricka works as a chemical engineer on a meat processing shop. No one forced them to do these things. 
  • 6. 
    Identify the economic system in this situation:The government of Natpretti is giving the people of Fhackhers their own area of land, the inhabitants of Fhackers has the liberty to do what they want with it. 
  • 7. 
    The etymology of the word economics means "household management".
    • A. 

      True

    • B. 

      False

  • 8. 
    It is the cost of something which you give up to get it.
  • 9. 
    Two scopes of economics include microeconomics and;
  • 10. 
    On a normal day, Racelle spends 3 gold bars for breakfast and 5 gold bars for lunch and she goes home for dinner. On one day Racelle's mother said she must eat dinner outside the house so she spends 6 gold bars for dinner that day. How much is the marginal cost?
  • 11. 
    Inflation is the increase of the individual level of price.
    • A. 

      True

    • B. 

      False

  • 12. 
    Identify the analysis used in the observation:The economic status of Crimea as of today is at its critical levels, for they lost connection to Kiev, Crimea's lifeline to the Ukraine economy.
  • 13. 
    Identify the analysis used in the observation:The Crimean people immediately chose to side with Russia because the Crimean inhabitants are attracted to the promises given by the Russian government.
  • 14. 
    In a Circular Flow Diagram the one that provides resources to the INPUT MARKET is the:
    • A. 

      Household

    • B. 

      Firm

    • C. 

      Output Market

    • D. 

      Input Market

  • 15. 
    In a Circular Flow Diagram the one that provides resources to the OUTPUT MARKET is the:
    • A. 

      Firm

    • B. 

      Household

    • C. 

      Output Market

    • D. 

      Input Market

  • 16. 
    The inferior goods are known as giffen goods, the status symbol goods are known as
  • 17. 
    Is the number of consumers' want that they can afford
  • 18. 
    Demand Curve and Supply Curve are graphical illustrations and Demand Schedule and Supply Schedule are tabular illustrations.
    • A. 

      True

    • B. 

      False

  • 19. 
    It is the sum of all individual demands
  • 20. 
    If the price of a product increases the demand; 
  • 21. 
    If a price of a veblen good increases the demand;
  • 22. 
    If the price of a giffen good decreases the demand;
  • 23. 
    If the income of the person increases the demand for the inferior product;
  • 24. 
    If the price of the complement decreases, the demand for the product;
  • 25. 
    It is the number of the producers' willingness to produce.
  • 26. 
    If the cost of production decreases the supply;
  • 27. 
    If the price of the substitute increases, the demand for the product;
  • 28. 
    If the price of the product increases the supply;
  • 29. 
    The Production Possibilities Frontier is used to detect trades that are better off and ineffiecencies.
    • A. 

      True

    • B. 

      False

  • 30. 
    David Ricardo's Comparative Advantage looks at a producer's ability to produce the same good with fewer resources.
    • A. 

      True

    • B. 

      False

  • 31. 
    Tydings Company is willing to spend up to 700 diamond stones to purchase IGACOS. It turns out that IGACOS' Current Market Price is only 200. What is the consumer surplus?
  • 32. 
    Price/Products  (10-9/5)  (8-9/4)  (7-8/3)  (6-7/2)  (5-6/1)Given the data above what is the producer surplus given that the current market price is 7?
  • 33. 
    It is the sum of the consumer surplus and the market surplus.
  • 34. 
    If price floor is the minimum amount to which below transaction allowed, the maximum amount to which above transaction is not allowed is called.
  • 35. 
    The current equilibrium is at 3, the current price ceiling is 5.If the price ceiling is change to 2, the price ceiling is binding.
    • A. 

      True

    • B. 

      False

  • 36. 
    If the current equilibrium is a 3, and the price floor is at 2If I raise the price floor to 2.5, the price floor is binding.
    • A. 

      True

    • B. 

      False

  • 37. 
    If the price floor is moved up above the equilibrium point it will cause the equilibrium point to go upwards but in this situation the price will change and the quantity will change causing a; 
  • 38. 
    If the price ceiling is moved below the equilibrium, it will force the equilibrium to go downwards, in this situation the price and the quantity will change causing a;