ExamView_Pro_-_Econ2020Exam1.2008S - Name: _ AU email: _...

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Name: ________________________ AU email: ___________________ ID: A 1 Econ2020Exam1.2008S Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. If scarcity were eliminated, a. all goods would be free. b. no one would have to make any choices. c. everyone could have all they want at no cost. d. all of the above are true. ____ 2. Which of the following is true of resources? a. Resources are inputs used to produce goods and services. b. The availability of resources is unlimited. c. Economists often use the term capital when referring to man-made resources such as tools, machines, and buildings. d. Both a and c are true. ____ 3. Peyton no longer needs her old sofa . She pays $5 to post an ad in the campus newspaper :”FREE Sofa -- you haul”. Eli needs a sofa for his trailer . He spots the ad and rents a van for $25 on order to pick up the sofa. Eli earns $10 per hour tutoring economics students; he takes an hour off this job to haul the sofa home. What are the tranactions costs associated with the exchange of Peyton’s old sofa ? a. $30. b. $40. c. $25. d. $15. ____ 4. The acronym TANSTAAFL implies a. everyone has to pay for his or her own lunch. b. the person consuming an item must always use cash or credit card to pay for the item. c. no one has time for a good lunch anymore. d. opportunity costs are always incurred when scarce resources are used to produce goods - - food or otherwise. ____ 5. When an individual weighs her options and makes a choice that maximizes her benefit at the minimum cost, economists refer to this as a process of a. rational decision making. b. objective decision making because the value of goods is determined objectively. c. marginal management analysis. d. random decision making. ____ 6. A basic postulate of economics, and one of the “guideposts” discussed in chapter 1, argues that changes in incentives influence a. the actions of producers but not consumers. b. the actions of consumers but not producers. c. the choices of individuals only when they buy and sell goods in the marketplace. d. the choices of individuals with regard to a wide range of activities, including those generally perceived as social or political.
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2 ____ 7. Which of the following is true? a. Positive economics deals with how people react to changes in benefits, and normative economics deals with how people react to changes in costs. b. Positive economic statements are testable, but normative statements are not. c. Positive economic statements involve value judgments while normative economics focuses on whether a policy will achieve its intended objectives. d. Positive economic statements focus on policy issues while normative economics focuses on economic theory. ____ 8.
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ExamView_Pro_-_Econ2020Exam1.2008S - Name: _ AU email: _...

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