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Exam 1: Economics and Life

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Question 71

Multiple Choice

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The two flows,or things being exchanged,in the circular flow model are:

A) inputs and outputs.
B) imports and exports.
C) inputs/outputs and money.
D) land and labor.

E) B) and C)
F) A) and D)

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Question 72

Multiple Choice

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In order to understand when a model may not be accurate,it is important to:

A) omit details when developing a model.
B) make sure assumptions made in the model are clear.
C) test the model.
D) All of these.

E) All of the above
F) B) and C)

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Question 73

Multiple Choice

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Judy would like to enjoy freshly grown vegetables from her own garden but also wants her daughter to enjoy summers with a swimming pool in the backyard.Despite having a green thumb,she chooses to use her extra land for a swimming pool.The opportunity cost of the swimming pool is:

A simplified representation of the important parts of a complicated situation is:

You decided to take a college accounting course to brush up on your knowledge of the language of business.The tuition expense was $500.After the date has expired to receive a refund for the course,you are offered a job that would conflict with your class time.In making the decision to accept or decline the offer,the $500 is:

Entrepreneurs tend to take greater risks if low tax rates offer greater after-tax profit potentials.The government's decision to offer low tax rates to entrepreneurs is:

Cameron can spend the afternoon playing golf,driving his boat,or cleaning his house.Although he enjoys golf,he sometimes becomes frustrated when playing.He decides to enjoy a more relaxing afternoon on his boat.Cameron never thought about cleaning the house but did give golf some serious consideration.Cameron's opportunity cost of taking his boat out was:

A positive statement:

Scarcity reflects our inability to satisfy wants due to:

The idea of efficiency is used to address which of the following questions?

If Johnny weren't in economics class this morning,he'd be sleeping.The value Johnny places on sleeping represents his:

When we assume that consumers want to pay the lowest price possible,we assume that consumers are:

Individuals,firms,and societies are limited in the amount of goods and services that they can produce.This is a direct result of:

Which of the following is an example of a normative statement?

If people have never implemented an idea that you believe offers substantial opportunity:

The study of economics can help us:

After purchasing a coffee cup from your local gas station for $5.00,you can always refill your cup for $0.50.The sunk cost of the coffee purchased at the gas station is:

An Incentive is a concept that addresses which question used by economists?

Mitt Romney argued in a debate with President Obama that the economy had grown more slowly in each year of the President's term than in the previous year.This claim is most related to the field of:

Which of the following would be considered a microeconomic topic?