ECON 2301 (Exam 1)

ECON 2301 (Exam 1) - ECON 2301-Exam 1 1. The founder of the...

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ECON 2301-Exam 1 1. The founder of the discipline of economics and the seminal book he wrote is A) Adam Smith; The Wealth of Nations B) Adam Smith; Free to Choose C) Milton Friedman; The Wealth of Nations D) Milton Friedman; Free to Choose 2. Which of the following forces us to choose among alternatives? A) Value B) Scarcity C) Rarity D) Market mechanism 3. Economics is primarily the study of: A) human greed. B) how firms compete for profits in the marketplace. C) the choices we make among our many wants and desires, given our limited resources. D) unemployed resources. E) how successful investors make money in the stock market. 4. When economists say goods are scarce, they mean that: A) consumers do not have enough money to purchase the goods. B) the desire for goods and services exceeds our ability to produce them with limited resources. C) at the current price, consumers are willing to buy more of a good than suppliers are willing to produce. D) government programs are needed to lift families out of poverty. 5. Economists believe that individuals act as if they are motivated: A) primarily by the opinions of their peers. B) primarily by human feelings. C) primarily by self-interest. D) only by concern for the larger community. E) by none of the above. 6. Mike wanted to volunteer with the rebuilding of Joplin, MO. Sue stayed home and partied. Who is engaging in self-interested behavior? A) Mike B) Sue C) Both D) It depends on their values and anticipated future circumstances. 7. Adrian flunked out of school because he didn't study. Would an economist say that Adrian 'did the best he could given his values and beliefs under current and anticipated future circumstances?' A) No. Economists recognize that people sometimes make choices they regret. Economists only believe people act rationally in groups, not as individuals. B) No. Adrian obviously had the academic ability to do well in school. He could have passed his classes. C) Yes. Economists assume rationality. D) Yes. Adrian obviously didn't have the ability to succeed in school. 8. An economy's resources: A) consist of land, labor, capital, and entrepreneurial skills. B) are unlimited in a country like the United States. C) are always efficiently utilized in wealthy nations. D) consist of land, labor, and entrepreneurial skills but not capital. 9. Alex works at an accounting firm. His effort in working for the firm is considered what type of resource? A) an entrepreneur B) management C) capital
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D) labor 10. Which of the following would be categorized as capital resources for a college or university? A) water, trees, and the acreage a campus rests on B) chalkboards, overhead projectors, and the expertise of professors C) exams, fuel oil (which heats the buildings), and electricity D) the work effort of registrars, clerical assistants, and teaching assistants 11. Human capital is: A) machinery owned by firms, but not by individuals.
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This note was uploaded on 10/01/2011 for the course ECON 2301 taught by Professor Butler during the Spring '08 term at Blinn College.

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ECON 2301 (Exam 1) - ECON 2301-Exam 1 1. The founder of the...

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