BUSINESS (C13V) - Microeconomics Exam 1 > Latest - Ashworth College { Attempt Score- 100/100}

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Microeconomics Exam 1 BUSINESS (C13V) Question 1 of 20 5.0/ 5.0 Points Because resources are limited, . • A. only the very wealthy can get everything they want • B. firms will be forced ou... t of business • C. the availability of goods will be limited but the availability of services will not • D. people must make choices Question 2 of 20 5.0/ 5.0 Points Resources are all of the following EXCEPT . • A. unlimited and in abundance • B. the things we use to produce goods and services • C. limited in quantity and can be used in different ways • D. scarce and therefore require choices to be made Question 3 of 20 5.0/ 5.0 Points All of the following are considered natural resources EXCEPT . • A. a coral reef • B. gold • C. labor • D. a redwood forest Question 4 of 20 5.0/ 5.0 Points Jacinda quit her job as a blackjack dealer where she made $42,000 per year to start her own florist business. Her business expenses are $14,000 per year on rent, $21,000 per year on supplies, and $9,000 per year on part-time help. As for her personal expenses, her apartment costs her $12,000 per year and her personal bills are an extra $6,000 per year. What is Jacinda's opportunity cost of running the business? • A. $104,000 • B. $86,000 • C. $62,000 • D. $44,000 Question 5 of 20 5.0/ 5.0 Points The principle that the cost of something is equal to what is sacrificed to get it is known as the . • A. marginal principle • B. principle of opportunity cost • C. principle of diminishing returns • D. reality principle Question 6 of 20 5.0/ 5.0 Points You have an hour between your economics and math classes. What is the opportunity cost of that time if you use it to complete your math homework instead of your economics homework? • A. the economics homework you could have completed • B. the math homework you chose to complete • C. the cost of your calculator and math textbook • D. zero, because it doesn't cost any money to do your math homework Question 7 of 20 5.0/ 5.0 Points The effort used to coordinate the factors of production is a description of . • A. physical capital • B. human capital • C. labor • D. entrepreneurship Question 8 of 20 5.0/ 5.0 Points The knowledge and skills acquired by a worker through education and experience is a description of which factor of production? Question 9 of 20 5.0/ 5.0 Points An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is . • A. the cost of bait and any other monetary expenses • B. zero, because the person doesn't have a job • C. the cost of bait, any other monetary expenses, and the value of the individual's wages while he was working • D. the cost of bait, any other monetary expenses, and the value of the best alternative use of the individual's time Question 10 of 20 5.0/ 5.0 Points The opportunity cost of something is . • A. the cost of the labor used to produce it • B. what you sacrifice to get it • C. the price charged for it • D. the search cost required to find it Question 11 of 20 5.0/ 5.0 Points You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a friend about the film and your friend asks to come over and watch the movie with you before it is due back. What is your opportunity cost if you decide to watch the movie a second time instead of going to a football game? Question 12 of 20 5.0/ 5.0 Points Spending money on a new car instead of a used car when you are on a fixed budget is an example of . • A. the incursion of an opportunity cost • B. isolating variables • C. a bad thing to do because you run out of money • D. living on the edge Question 13 of 20 5.0/ 5.0 Points Angelina, age seven, decides to dress up like Princess Fiona for Halloween. What is the opportunity cost of her decision? • A. the cost of the costume • B. the fact that she can't dress up like Dora the Explorer, her second choice • C. zero, because seven-year-olds don't have opportunity costs • D. the cost of the Lady Gaga costume which she did not want Question 14 of 20 5.0/ 5.0 Points The opportunity cost of going to college . Question 15 of 20 5.0/ 5.0 Points Economics is the study of . • A. how to invest in the stock market • B. how society uses limited resources • C. the role of money in markets • D. how government officials decide which goods and services are produced Question 16 of 20 5.0/ 5.0 Points An arrangement that allows buyers and sellers to exchange things is called . • A. a contract • B. a market • C. money • D. efficient Question 17 of 20 5.0/ 5.0 Points Which of the following is an example of a normative question? • A. How will an increase in the inheritance tax affect tax revenues? • B. What fraction of an income tax cut will be spent on imported goods? • C. Should Florida implement a state income tax to reduce its deficit? • D. How will an increase in unemployment benefits affect the unemployment rate? Question 18 of 20 5.0/ 5.0 Points Steven lives in a big city where there is a shortage of parking. He has a parking spot in his driveway where he parks his car. Which of the following statements is most correct? • A. Steven has a lower opportunity cost of owning a car than his neighbor, who must rent a parking spot. • B. The opportunity cost of using the spot is zero, because Steven owns the house. • C. The opportunity cost of using the parking spot is the price he could charge someone else for using the spot. • D. The opportunity cost depends on how much Steven's mortgage payment is. Question 19 of 20 5.0/ 5.0 Points Suppose that your tuition to attend college is $14,000 per year and you spend $5,000 per year on room and board. If you were working full time, you could earn $26,000 per year. What is your opportunity cost of attending college? • A. $19,000 • B. $31,000 • C. $40,000 • D. $45,000 Question 20 of 20 5.0/ 5.0 Points The physical and mental effort people use to produce goods and services is a description of which factor of production? • A. physical capital • B. human capital • C. labor • D. entrepreneurship [Show More]

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