Exam-1-StudyGuide

# Exam-1-StudyGuide - Name: _ Class: _ Date: _ ID: A Exam 1...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Exam 1 Study Guide Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following questions is not answered by the decisions that every society must make? a. What determines consumer preferences? b. What goods will be produced? c. Who will produce the goods? d. Who will consume the goods? ____ 2. Economics is the study of a. how society manages its scarce resources. b. the government's role in society. c. how a market system functions. d. how to increase production. ____ 3. When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included? a. Your full room-and-board expenses should always be included. b. None of your room-and-board expenses should ever be included. c. You should include only the amount by which your room-and-board expenses exceed the income you earn while attending college. d. You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food if you were not in college. ____ 4. The opportunity cost of an item is 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. ____ 5. A donut shop sells fresh baked donuts from 5 a.m. until 3 p.m. every day. The shop does not sell day-old donuts, so all unsold donuts are thrown away at 3 p.m. each day. The cost of making and selling a dozen donuts is \$1.50; there are no costs associated with throwing donuts away. If the manager has 10 dozen donuts left at 2:30 p.m. on a particular day, which of the following alternatives is most attractive? a. Lower the price of the remaining donuts, even if the price falls below \$1.50 per dozen. b. Lower the price of the remaining donuts, but under no circumstances should the price fall below \$1.50 per dozen. c. Throw the donuts away and produce 10 fewer dozen donuts tomorrow. d. Starting tomorrow, lower the price on all donuts so they will all be sold earlier in the day. ____ 6. Evidence indicates that seat belt laws have led to a. fewer pedestrian deaths. b. fewer automobile accidents. c. fewer deaths per automobile accident. d. All of the above are correct.

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Name: ________________________ ID: A 2 ____ 7. Which of the following statements about trade is false? a. Trade increases competition. b. With trade, one country wins and one country loses. c. Bulgaria can benefit, potentially, from trade with any other country. d. Trade allows people to buy a greater variety of goods and services at lower cost. ____ 8.
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## This note was uploaded on 02/03/2012 for the course ECON 302 taught by Professor Quan during the Spring '11 term at Canadian University College.

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Exam-1-StudyGuide - Name: _ Class: _ Date: _ ID: A Exam 1...

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