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Exam 1 - Question 1 Multiple Choice 3 of 3 points Since the...

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Question 1 Multiple Choice 3 of 3 points Since the test of a theory is its ability to predict, and since economics deals with human beings who can think and respond in a variety of ways, can economic theories really be tested? Selected Answer: Yes, since on the average human beings will respond predictably to changes in personal costs and benefits. Correct Answer: Yes, since on the average human beings will respond predictably to changes in personal costs and benefits. Question 2 Multiple Choice 3 of 3 points Which of the following could be considered to be a secondary effect caused by making drugs such as cocaine illegal? Selected Answer: All of the above would be considered secondary effects of making drugs illegal. Correct Answer: All of the above would be considered secondary effects of making drugs illegal. Question 3 Multiple Choice 3 of 3 points When a good is scarce, Selected Answer: both b and c are correct. Correct Answer: both b and c are correct. Question 4 Multiple Choice 0 of 3 points
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Figure 3-3 In Figure 3-3, if the initial demand for margarine were D 1 , the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as Selected Answer: a shift in the demand curve to D 2 . Correct Answer: a movement upward to the left along the original demand curve D 1 . Question 5 Multiple Choice 3 of 3 points According to the basic principle of economics, individuals will buy less of a commodity, compact discs, for example, if the price rises. However, if the price rises between period 1 and period 2, we may not observe people buying fewer compact discs because Selected Answer: other factors, such as the income of consumers, may have also changed, offsetting the expected effect on compact disc sales. Correct Answer: other factors, such as the income of consumers, may have also changed, offsetting the expected effect on compact disc sales. Question 6 Multiple Choice 0 of 3 points A local restaurant offers an "all you can eat" Sunday brunch for $12. Susan eats four servings but leaves half of a fifth helping uneaten. Why? Selected Answer: The total value she places on brunch today exactly equals $12. Correct Answer: Her marginal value of food has fallen to zero.
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Question 7 Multiple Choice 3 of 3 points In economics, secondary effects refer to the Selected Answer: unintended consequences of a change that are not immediately identifiable but are felt only with time.
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