front 1 BIllie Jean has $120 to spend and wants to buy either a new amplifier for her guitar or a new mp3 player. Both the amp and the mp3 player cost $120, so she can only buy one. This illustrates the basic concept that | back 1 People face tradeoffs |
front 2 Efficiency means that | back 2 society is getting the maximum benefits from its scarce resources. |
front 3 When the government redistributes income from the wealthy to the poor | back 3 Equality is improved, but efficiency is not. |
front 4 When computing the opportunity cost of attending a basketball game, you should include what? | back 4 The price you pay for the ticket and the value of your time. |
front 5 Melody decides to spend 3 hours working overtime rather than going to the park with her friends. She earns $20 per hour for overtime work. Her opportunity cost of working is? | back 5 The enjoyment she would have received had she gone to the park. |
front 6 The "invisible hand" works to promote general well-being in the economy primarily through? | back 6 People's pursuit of self-interest. |
front 7 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. The opportunity cost of 1 mixer for Maya is | back 7 1.6 toasters |
front 8 The opportunity cost of 1 mixer for Miguel is | back 8 2 toasters |
front 9 The opportunity cost of 1 toaster for Maya is | back 9 0.625 mixers. |
front 10 The opportunity cost of 1 toaster for Miguel is | back 10 1/2 mixer. |
front 11 Maya has an absolute advantage in the production of what? | back 11 Both goods, and a comparative advantage in the production of mixers. |
front 12 Which of the following best describes the movement from E1 to E2? | back 12 A decrease in supply. |
front 13 Which of the following would explain a movement from E1 to E2? | back 13 The cost of an input to the production of this good increases. |
front 14 Equilibrium price and quantity are respectively: | back 14 $25 and 400 units. |
front 15 At a price of $35, there would be a: | back 15 surplus of 400 units. |
front 16 U.S GNP | back 16 excludes production of foreigners working in the US but includes production by US citizens working in foreign countries. |
front 17 A US citizen buys a tea kettle manufactered in China by a company that is owned and operated by US citizens. In which of the following components of US GDP is this transaction accounted for? | back 17 Consumption and imports. |
front 18 Which of the following items is included in US GDP? | back 18 All of the above are included in US GDP. |
front 19 If in some year nominal GDP was $20 billion and GDP deflator was 50, what was the real GDP? | back 19 $40 billion. |
front 20 When a US citizen buys $500 of Chinese made parts for a motorcycle: | back 20 US consumption increases by $500, US net exports decline by $500, and US GDP remains the same. |
front 21 Disposable personal income is the income that | back 21 Households and noncorporate businesses have left after paying taxes and non-tax payments to the government. |
front 22 Nominal GDP will definitely increase when | back 22 prices increase and outputs increase. |
front 23 In the economy of Talikastan in 2015, consumption was $200, exports were $150, GDP was $475, government purchases were $100, imports were $75, and investment was $100. What were Talikastan's net exports in 2015? | back 23 $75. |
front 24 If an economy is producing efficiently, then: | back 24 There is no way to produce more of one good without producing less of another good. |
front 25 Economics is the study of | back 25 How society manages its scarce resources. |
front 26 The adage, "there is no such thing as a free lunch", means | back 26 People face tradeoffs. |
front 27 The terms equality and efficiency are similar in that they both refer to benefits in society. However, they are different in that | back 27 equality refers to uniform distribution of those benefits, and efficiency refers to maximizing benefits from scarce resources. |