Econ exam 1

Efficiency

• 1. and equality both refer to how much a society can produce with its resources.

• 1. and equality both refer to how fairly the benefits from using resources are distributed between members of a society.

• 1. refers to how much a society can produce with its resources. Equality refers to how evenly the benefits from using resources are distributed among members of society.

• refers to how evenly the benefits from using resources are distributed between members of society.
  Equality refers to how much a society can produce with its resources.

When computing the opportunity cost of attending a rodeo as a spectator, you should include

• the price you pay for the ticket and the value of your time.

• 1. the price you pay for the ticket, but not the value of your time.

• 1. the value of your time, but not the price you pay for the ticket.

• 1. neither the price of the ticket nor the value of your time.

Laws that enforce chemical hazard control are examples of government intervention that is intended to reduce

• 1. equality.

• 1. efficiency.

• externalities.

• productivity.

Prices direct economic activity in a market economy by

• influencing the actions of buyers and sellers.

• reducing scarcity of the goods and services produced.

• reducing opportunity cost of goods and services produced

• allocating goods and services in the most equitable way.

The primary determinant of a country's standard of living is

• the country's ability to prevail over foreign competition.

• the country's ability to produce goods and services.

• 1. the total supply of money in the economy.

• 1. the average age of the country's labor force.

Economics is the study of how society manages its

• 1. limited wants and limited resources.

• 1. unlimited wants and unlimited resources.

• 1. limited wants and unlimited resources.

• 1. unlimited wants and limited resources.

Instead of conducting laboratory experiments to generate data to test their theories, economists often

• 1. rely upon hypothetical data that were previously concocted by other economists.

• 1. do without data.

• 1. use whatever data the world gives them.

• assume that data would support their theories.

8. A circular-flow diagram is a model that

• 1. helps to explain how consumers and the government interact with one another.

• 1. explains how countries trade with each other.

• 1. incorporates all aspects of the real economy.

• 1. helps to explain how the economy is organized.

What is the opportunity cost of increasing the production of rye from 700 bushels to 1200 bushels?

• 250 bushels of corn

• 500 bushels of corn

• 1. 750 bushels of corn

• 1. 1000 bushels of corn

Efficient production is represented by which points)?

• C D

• B

• C D B

• C D A