ECO232Quiz1

Question 1 Marks: 1 Efficiency means that Choose one answer. a. society is conserving resources in order to save them for the future. b. society's goods and services are distributed equally among society's members. c. society's goods and services are distributed fairly, though not necessarily equally, among society's members. d. society is getting the maximum benefits from its scarce resources. Correct Marks for this submission: 1/1. Question 2 Marks: 1 Economists use the word equity to describe a situation in which Choose one answer. a. each member of society has the same income. b. each member of society has access to abundant quantities of goods and services, regardless of his or her income. c. society is getting the maximum benefits from its scarce resources. d. the benefits of society's resources are distributed fairly among society's members. Correct Marks for this submission: 1/1. Question 3 Marks: 1 What you give up to obtain an item is called your Choose one answer. a. opportunity cost. b. explicit cost. c. true cost. d. direct cost.

Correct Marks for this submission: 1/1. Question 4 Marks: 1 The opportunity cost of going to college is Choose one answer. a. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses. b. the value of the best opportunity a student gives up to attend college. c. zero for students who are fortunate enough to have all of their college expenses paid by someone else. d. zero, since a college education will allow a student to earn a larger income after graduation. Incorrect Marks for this submission: 0/1. Question 5 Marks: 1 A marginal change is a Choose one answer. a. change that involves little, if anything, that is important. b. large, significant adjustment. c. change for the worse, and so it is usually a short-term change. d. small, incremental adjustment. Correct Marks for this submission: 1/1. Question 6 Marks: 1 A rational decision maker takes an action only if the Choose one answer. a. marginal benefit is less than the marginal cost. b. marginal benefit is greater than the marginal cost. c. average benefit is greater than the average cost.

d. marginal benefit is greater than both the average cost and the marginal cost.

Incorrect Marks for this submission: 0/1. Question 7 Marks: 1 The term used to describe a situation in which markets fail to allocate resources efficiently is called Choose one answer. a. economic meltdown. b. market failure. c. disequilibrium.

d. the effect of the invisible hand.

Correct Marks for this submission: 1/1. Question 8 Marks: 1 An example of an externality is the impact of Choose one answer. a. bad weather on the income of farmers. b. the personal income tax on a person's ability to purchase goods and services. c. pollution from a factory on the health of people in the vicinity of the factory. d. increases in health care costs on the health of individuals in society.

Correct Marks for this submission: 1/1. Question 9 Marks: 1 Which of the following firms is most likely to have market power? Choose one answer. a. a fast food restaurant in a college town

b. a wheat farm in Kansas c. the last gas station in New Mexico for 100 miles d. a shoe store in Kentucky

Correct Marks for this submission: 1/1. Question 10 Marks: 1 The term "productivity" Choose one answer. a. means the same thing as "efficiency." b. is seldom used by economists, as its meaning is not precise. c. refers to the quantity of goods and services produced from each hour of a worker's time. d. refers to the variety of goods and services from which households can choose when they shop. Correct Marks for this submission: 1/1.