E002

Which is an example of a physical resource?

• Lamont Butler's ability to make a jump shot at the buzzer and send SDSU to the NCAA Champs Game.

• The new, more energy efficient solar panels that are designed by Tesla

• The acres of unharvested timber that exist in the Pacific Northwest

• All of the above are examples of physical resources

Answer explanation

while the sun is a natural resource, the PANELS are PHYSICAL resources

What would be a likely result of forcing parents to put young children in safety seats on an airplane?

• This will increase the safety of traveling families as it is less likely that children will die in an airplane crash

• This will result in more terrorism attempts as it makes it easier for terrorists to smuggle bombs onto the plane in these safety seats

• Familiies will be more likely to choose to drive rather than fly when traveling, which will increase the danger of traveling to that family

• This will increase the desire fo families with small children to travel, which will help boost the economy

J.R. sells fruits, veggies, and other market items. Mr. Potato needs to buy fruit and plastic bag. If he buys 9 different fruits at $2.00 per box, the bag cost is $1.50. However, J.R. is running a special where you buy 10 different fruits and get a bag for gree. Given that Mr. Potato is going to get a bag, what is the marginal cost of the 10th fruit?

• Zero

• $0.50

• $1.50

• $2.00

Answer explanation

- A: 9*$2 =$18 + $1.50 = $19.50

- B: 10 * $2 = $20 + free = $20

$20 - $19.50 = $0.50

"The resources now going into the War on Terrorism and into improved airport security could save more lives if they were invested in medical research." The statement most clearly reflects which of the following?

• The government always knows the best way to use the economy's resources

• There is no such thing as a free lunch--the use of scarce resoruces always has an opportunity cost

• Selfishness; if people were not selfish, we could have more of everything

• The value of anything can be determined objectively

Answer explanation

trade-offs!

Which of the following is an example of a human resource?

• Cooper Kupp's ability to catch touchdown passes & win the 2022 Super Bowl MVP award

• The new more energy efficient solar panels that are designed by Tesla

• The acres of unharvested timber that exist in the Pacific Northwest

• All are examples of human resources

Answer explanation

- Cooper: ABILITY

- panels: physical

- timber: natural

"The resources now going into the newest stimulus package could help more people if they were invested in medical research." This statement most clearly reflects which of the following?

• There is no such thing as a free lunch--the use of scarce resources always has an opportunity cost

• The government always knows the best way to use the economy's resources

• Selfishness; if people were not selfish, we could have more of everything

• The value of anything can be determined objectively

Answer explanation

we have to engage in trade-offs

Which one of the following is a normative statement?

• When income tax rates go up, people choose to work less or spend more time hiding their income from the government

• A 10% increase in income tax rates on the rich will cause the toal tax revenue to increase by 5%

• The government should increase tax rates on the top 1% of income earners

• All of the above are normative statements

Which of the following is a normative statement?

• The government should raise the minimum wage to help the working poor.

• A 10% increase in minimum wage will increase the unemployment rate among workers without a college degree by 1-3%.

• Increasing minimum wage will lead to larger increases in unemployment among traditionally marginalized group of people compared to less marginalized groups of people.

• An increase in the federal minimum wage to $15 an hour will lift 100,000 families above the poverty line.

Which of the following best captures what economists mean when they say that medical care is scarce?

• There is not enough medical care available for everyone to have as much as they want, which is why we have to pay for medical care.

• Some countries don’t have access to the same level of medical care as other countries.

• People’s desire for medical care will increase even if the price of medical care goes up.

• Medical care is so abundant that would it be free if it were just provided by the government.

Answer explanation

Scarcity refers to the idea that there is not enough freely available from nature to satisfy everyone’s desires.  Medical care is not freely available from nature as it is expensive to provide and, thus, must be paid for, either by us directly when we purchase it privately, by the insurance company through the funds we pay for medical insurance, or by taxpayers if that care is provided by the government.  No matter how great a country’s medical care system is, it is never free.

Which of the following is an example of a human resource?

• The paper and ink used to print a book.

• The land on which the printing press factory that prints books sits.

• J. K. Rowling’s creativity used to create the Harry Potter Novels.

• All

Answer explanation

- J.K. Rowling’s CREATIVITY: intangible quality that she uses to produce a good = HUMAN resource

- PAPER AND INK used to print the book: human-made ingredient of the book: PHYSICAL resource

- LAND on which the factory sits: NATURAL resource