econ

Question 1

Which is the best example of specialization?

Answer 1

An assistant in a tailoring shop only replaces zippers

Question 2

How does the division of labor increase productivity?

Answer 2

Workers become expert at one task

Question 3

What is the main reason Americans specialize more today than the early pioneers did?

Answer 3

We have more access to markets

Question 4

In a voluntary exchange; why do people give something up?

Answer 4

To get something they want more

Question 5

How does the commerce clause promote economic interdependence?

Answer 5

It keeps states from creating trade barriers

Question 6

What does it mean to say that Jen has a comparative advantage over Julian for weeding peoples gardens?

Answer 6

Jen’s opportunity cost for weeding is lower than Julian’s

Question 7

Which of these is the main reason for national differences in comparative advantage in producing raw materials?

Answer 7

Differences in allocations of natural resources

Question 8

Why has much clothing manufacturing moved from the U.S. to other countries ?

Answer 8

Nations with large low skilled workforces have a comparative advantage for assembly line production.

Question 9

How does trade increase the value of an item?

Answer 9

It transfers the item to someone who values it more

Question 10

Which term best describes the fact that we depend on others to produce most of the goods and services we want?

Answer 10

Economic interdependence

Question 11

People’s wants are unlimited. This fact means that which of the following is always present?

Answer 11

Scarcity

Question 12

What are the factors of production?

Answer 12

land; labor; and capital

Question 13

which of the following is a major reason the standard of living iin japan is much higher than in nigeria?

Answer 13

greater human capital

Question 14

risk taker

Answer 14

entrepreneur

Question 15

why are tradeoffs necessary?

Answer 15

resources are limited

Question 16

what does it mean to maximize utility

Answer 16

to gain the most satisfaction possible

Question 17

Which scenario best illustrates the law of diminishing marginal utility ?

Answer 17

a new toy is less exciting to a child with many toys than to a child with just a few

Question 18

Why might some historians consider Adam Smith one of the most influential people in history?

Answer 18

he introduced a way of thinking about economic ideas

Question 19

which of these statements is an ex of normative economics

Answer 19

taxes ought to be lowered

Question 20

which of these terms is most closely related to tradeoffs

Answer 20

scarcity

Question 21

economists assume people choose something when its expected costs are less than its

Answer 21

anticipated benefits

Question 22

A limitation of using graphs to represent relationships is that they

Answer 22

omit factors other than those being graphed

Question 23

which statement is the best ex of thinking at the margin

Answer 23

john has six shirts and is trying to decide whether to buy a seventh

Question 24

what is the best test of an economic model

Answer 24

it is useful for both explaining past events and predictiong future ones

Question 25

which of the following is not a market

Answer 25

a high school classroom

Question 26

what does it mean to say that free markets are efficient

Answer 26

buyers and sellers trade until both are satisfied

Question 27

what is the law of unintended consequences

Answer 27

actions often have unforeseen effects

Question 28

The law of demand states that as quantity demanded decreses

Answer 28

prices increases

Question 29

in the summer picnic season; a sharp rise in the price of burgers may lead to an increase in demand for

Answer 29

chicken

Question 30

quantity demanded moves along the demand curve in response to changes in

Answer 30

price

Question 31

which of these is most likely to happen to demand for clothes in a clothing store when blizzards keep customers at home?

Answer 31

the demand curve shifts to the left

Question 32

supply depends on the willingness and ability of

Answer 32

producers to produce

Question 33

according to the law of supply what happens when price increases

Answer 33

the quantity supplied increases

Question 34

which of these would most likely increase the supple of soccer balls

Answer 34

a decrease in the price of raw materials

Question 35

the degree to which quantity demanded responds to changes in price is called

Answer 35

elasticity

Question 36

which of these is most likely to quickly become avaliable in larger quantities as a result of a price increase?

Answer 36

babysitters

Question 37

which of these is the best example of diminishing marginal utility

Answer 37

someone who has one bicylcle will have less use for another

Question 38

Which of these situations best illustrates market equilibrium

Answer 38

the amount of soap made matches the amount of soap that people want to buy

Question 39

how is the market clearing price determined

Answer 39

it is reached through trial and error

Question 40

the equilibruium price is the price at which

Answer 40

demand and supply curves intersect

Question 41

if a manufacturer introduced a new product with a successful advertising campaign and an artificually low introductory price which of these will most likely result

Answer 41

shortage

Question 42

which event in florida and cali would most likely shift the supply curve for orange juice to the left

Answer 42

an early frost accompanied by ice storms

Question 43

which of these might est signal furniture makers to cut back production

Answer 43

a drop in the price consumers are willing to pay

Question 44

what is the usual result of setting a price ceiling on rents

Answer 44

more people want to rent aparments than are avaliable to rent

Question 45

new deal jobs programs offered employment during the great depression. in economic terms ; such programs were designed to respond to

Answer 45

a surplus of workers

Question 46

the purpose of rationing during ww2 was to ensure that

Answer 46

everone could get essential scarce goods

Question 47

the most important argument many economists make against price controls is that they are

Answer 47

inefficient