Part1_ExtraHomework-4

Part1_ExtraHomework-4 - Intro. Macro Extra Homework...

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Intro. Macro Extra Homework Questions Part 1 These questions are not a substitute for the questions in your study guide. These questions are to be done in addition to the questions in your study guide. Do not limit your studying to just these questions or only these topics. These questions will not be graded. They are to help you study. 1 . R e s o u r c e s a r e a. scarce for households but plentiful for economies. b. plentiful for households but scarce for economies. c. scarce for households and scarce for economies. d. plentiful for households and plentiful for economies. 2 . T h e p h e n o m e n o n o f scarcity stems from the fact that a. most economies’ production methods are not very good. b. in most economies, wealthy people consume disproportionate quantities of goods and services. c. governments restricts production of too many goods and services. d. resources are limited. 3 . W h e n a s o c i e t y c a n n o t p r o d u c e a l l t h e g o o d s a n d services people wish to have, it is said that the economy is experiencing a. scarcity. b. shortages. c. inefficiencies. d. inequities. 4 . I n e c o n o m i c s , t h e c o s t o f s o m e t h i n g i s a. the dollar amount of obtaining it. b. always measured in units of time given up to get it. c. what you give up to get it. d. often impossible to quantify, even in principle. 5 . T h e o p p o r t u n i t y c o s t o f a n i t e m i s a. the number of hours needed to earn money to buy the item. b. what you give up to get that item. c. usually less than the dollar value of the item. d. the dollar value of the item. 6 . R u s s e l l s p e n d s a n h o u r s t u d y i n g i n s t e a d o f p l a y ing tennis. The opportunity cost to him of studying is a. the improvement in his grades from studying for the hour. b. the improvement in his grades from studying minus the enjoyment of playing tennis. c. the enjoyment and exercise he would have received had he played tennis. d. zero. Since Russell chose to study rather than to play tennis, the value of studying must have been greater than the value of playing tennis.
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7.Factors of production are a. used to produce goods and services. b. also called output . c. abundant in most economies. d. assumed to be owned by firms in the circular-flow diagram. 8 . I n e c o n o m i c s , capital refers to a. the finances necessary for firms to produce their products. b. buildings and machines used in the production process. c. the money households use to purchase firms' output. d. goods, but not to services. 9
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This note was uploaded on 03/23/2011 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.

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Part1_ExtraHomework-4 - Intro. Macro Extra Homework...

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