Quiz: Unit 1.

1: Reading Quiz 9/2/18, 5)58 PM

Unit 1.1: Reading Quiz

Started: Sep 2 at 5:55pm

Quiz Instruc!ons
For the following multiple-choice questions, select the best answer and click on that answer and remember
to save your answers when you are done. It must be completed within the time limit and by the assigned
date. You will not be allowed to access the quiz, exit it, and come back to it later. If you exit the quiz before
you submit it for grading, your answers will be lost. Once you submit and exit the quiz it will be submitted for
grading. You will receive a score for your multiple-choice questions. You have two attempts for this quiz, so
take advantage of this opportunity. You will see the correct answers after your last attempt.

Question 1 1 pts

Studying economics:

helps one become a better-informed citizen and voter.

is important because students will someday have a job and need the information to make good
choices.

is important because economics is the science of earning money.

is a waste of time since we all participate in the economy whether we understand it or not.

is detrimental to good citizenship because economics emphasizes individualism.

Question 2 1 pts

Economic models:

are unrealistic and therefore of no practical consequence.

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 1 of 10
Quiz: Unit 1.1: Reading Quiz 9/2/18, 5)58 PM

emphasize basic economic relationships by abstracting from the complexities of the real world.

are limited to variables that are directly related to one another.

are of limited use because they cannot be tested empirically.

Question 3 1 pts

A caller to a radio talk show states that protesters against globalization are a collection of
"anarchist punks, naïve college students, and trade union radicals." This is an example
of:

loaded terminology.

marginal analysis.

the economic perspective.

the fallacy of composition.

Question 4 1 pts

The claim by economists that "there is no free lunch" is:

contradicted by the presence of free goods offered by firms.

applies to agricultural goods, but not to manufactured goods.

remains true even for goods given away free by firms.

applies to goods that have prices, not to goods given away free by firms.

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 2 of 10
Quiz: Unit 1.1: Reading Quiz 9/2/18, 5)58 PM

Question 5 1 pts

Suppose you have a $40 iTunes gift card with which you can buy (download) songs or
videos. Songs cost $1.00 each and videos cost $2.00 each. The opportunity cost of one
video

is $1.00

is constant and equal to 2 songs

increases as more videos are purchased

is constant and equal to 1/2 song

decreases as more videos are produced.

Question 6 1 pts

Which of the following is an economic explanation for why most college-aged movie stars
do not attend college.

the opportunity cost in terms of reduced income is too great

they would find college life boring

they cannot afford the room, board, and tuition fees most colleges charge.

they are too dumb to get into college

Question 7 1 pts

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 3 of 10
Quiz: Unit 1.1: Reading Quiz 9/2/18, 5)58 PM

As it relates to production possibilities analysis, the law of increasing opportunity cost is

reflected in curve that is ________ and the law of constant opportunity costs is reflected
in a curve that is :

bowed in and bowed out

bowed in and straight line

bowed out and a straight line

straight line and bowed out

Question 8 1 pts

At the onset of the Second World War the United States had large amounts of idle human
and property resources. Using a PPF, its economic adjustment from peacetime to
wartime can best be described by the movement from point ______ to a point _______.

under the curve to outside the curve

on the curve to outside the curve

under the curve to closer to the curve

on the curve to inside the curve

Question 9 1 pts

Commodity A B C D E

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 4 of 10
Quiz: Unit 1.1: Reading Quiz 9/2/18, 5)58 PM

Movie 100 75 50 25 0

Computers 0 30 55 70 80

Gingerland produces two commodities: movies and computers. Gingerland’s resources

include workers, factories, electricity and so on. The following schedule indicates some of
the points on Gingerland’s production possibilities curve.

What kind of opportunity costs does movie production exhibit?

decreasing opportunity costs

no opportunity costs

increasing opportunity costs

per-unit opportunity costs

Question 10 1 pts

Commodity A B C D E

Movie 100 75 50 25 0

Computers 0 30 55 70 80

Gingerland produces two commodities: movies and computers. Gingerland’s resources

include workers, factories, electricity and so on. The following schedule indicates some of
the points on Gingerland’s production possibilities curve.

What will happen to Gingerland’s PPF if technology improves production of both movies
and computers?

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 5 of 10
Quiz: Unit 1.1: Reading Quiz 9/2/18, 5)58 PM

shift of the PPF to the right or outward

there is a movement along the PPF towards computers

nothing, the PPF remains constant

shift the PPF to the left or inward

Question 11 1 pts

A nation's production possibilities curve is bowed out from the origin because:

resources are scarce.

wants are virtually unlimited.

resources are not equally efficient in producing every good.

the originator of the idea drew it this way and modern economists follow this convention.

Question 12 1 pts

The production possibilities curve illustrates the basic principle that:

an economy's capacity to produce increases in proportion to its population size.

the production of more of any one good will in time require smaller and smaller sacrifices of other
goods.

if all the resources of an economy are in use, more of one good can be produced only if less of
another good is produced.

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 6 of 10
Quiz: Unit 1.1: Reading Quiz 9/2/18, 5)58 PM

an economy will automatically obtain full employment of its resources.

Question 13 1 pts

Which of the following lists includes only capital resources (and therefore no labor or land
resources)?

an ice arena; a professional hockey player; hockey uniforms.

a hydroelectric dam; water behind the dam; power lines.

the owner of a new startup firm; a chemistry lab; a researcher.

autos owned by a car rental firm; computers at the car rental agency; the vans that shuffle rental
customers to and from the airport.

Question 14 1 pts

Macroeconomics mainly focuses on

the economy as a whole

specific product and resource markets

international trade and foreign exchange markets

individual consumers and producers.

Question 15 1 pts

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 7 of 10
Quiz: Unit 1.1: Reading Quiz 9/2/18, 5)58 PM

Microeconomics

is concerned with the economy as a whole

describes the aggregate flows of output and income

studies how supply and demand determine prices in individual markets

is particularly subject to the "fallacy of composition"

Question 16 1 pts

When constructing a typical PPF, economists assume

resources are equally productive in many alternative uses

economic resources are underutilized

all resources are fully employed

production technology is allowed to vary

Question 17 1 pts

Which of the following would lead to an inward shift of a nation's PPF?

an increase in the average skill level of the population

increased production of capital goods

immigration of skilled workers into the nation

a decrease in the size of the working-age population

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 8 of 10
Quiz: Unit 1.1: Reading Quiz 9/2/18, 5)58 PM

Question 18 1 pts

The scarcity problem:

persists only in developing countries

will be eliminated if full employment is achieved.

can be eliminated if all countries adopt laissez-faire capitalism

will persist so long as productive resources are limited.

Question 19 1 pts

At the birthday party of your best friend, you see Sklyar help himself to a second piece of
cake. For this individual. it must be the case that

the marginal benefit of the second piece of cake is more than the marginal cost.

Sklyer is irrationally consuming too much cake.

the marginal benefit of the second piece of cake is less than the marginal cost.

the total benefit received from eating the cake is falling.

the ratio of the marginal benefit over marginal cost is less than 1

Question 20 1 pts

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 9 of 10
Quiz: Unit 1.1: Reading Quiz 9/2/18, 5)58 PM

All of the following are illustrated on a production possibilities model EXCEPT:

opportunity costs

trade-offs

law of increasing or constant opportunity costs

scarcity of resources

the supply and demand for goods

Quiz saved at 5:58pm Submit Quiz

https://proximity.instructure.com/courses/2434817/quizzes/5048011/take Page 10 of 10