ECONOMICS CSE1000 UNIT 2 • EXAM 1

Front

A highly charitable person, such as Mother Theresa, will be influenced by

Back

both changes in benefits and costs.

Front

What is Susan’s opportunity cost of attending college next year?

Back

$25,500

Front

According to the law of supply, as the price of a good increases,

Back

sellers will produce more of the good.

Front

Caitlyn buys a new phone for $700. We can conclude that

Back

she must value the new phone more than the $700.

Front

Does voluntary exchange create wealth (value)?

Back

Yes, trade generally permits the trading partners to gain more of what they value; this is why they agree to the terms of the exchange.

Front

Voluntary trade promotes economic progress because it

Back

makes larger outputs possible as a result of specialization.

Front

When competition is present and property rights protected and enforced, market prices will

Back

encourage self-interested individuals to develop skills that are expected to be valuable in the future.

Front

More companies are avoiding rising oil prices by converting their energy equipment from oil to natural gas. This situation could be described as

Back

a movement along the demand curve for oil and a shift in the demand curve for natural gas.

Front

Which of the following would most likely increase the supply of gasoline? Lower prices of gas at the pump. Lower housing prices. A major oil boom in North Dakota. A fire destroys main refineries.

Back

A major oil boom in North Dakota.

Front

Back

An increase in wages and decrease in hiring workers.