Exam_1-_Practice_Test_2

Exam_1-_Practice_Test_2 - Exam 1 Practice Test 2 1 Which of...

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Exam 1- Practice Test 2 1. Which of the following is true? a. Even in the wealthiest of countries, the desire for material goods is greater than productive capabilities. b. Goods are scarce because of greed c. The absence of scarcity means that a minimal level of income is provided to all individuals. d. Scarcity and poverty are basically the same thing. 2. Scarcity means that: a. human desires are limited. b. resources are insufficient to satisfy all human desires. c. all but the very wealthy must face choices. d. market prices are too low. e. choices are unnecessary. 3. All of the following are tangible goods except: a. a piano. b. a desk. c. a train locomotive. d. fairness. e. a skateboard. 4. A student has a chance to see Matchbox 20 in concert. The student also has a major economics exam in the morning. If the student goes to the concert: a. she may receive a lower grade on the economics exam. b. the (opportunity) cost of the concert is the value of the time spent studying. c. the decision involves a tradeoff d. all of the above are correct 5. Lance's boss offers him twice his usual wage rate to work tonight instead of taking his girlfriend on a romantic date. This offer will likely: a. not affect the (opportunity) cost of going on the date. b. increase the (opportunity) cost of going on the date c. reduce the (opportunity) cost of going on the date because giving up the additional work dollars will make his girlfriend feel even more appreciated. d. not be taken into consideration by Lance when deciding what to do tonight. 6. The marginal benefit of a slice of pizza is the: a. maximum amount that a consumer is willing to pay for the slice. b. difference between the value of the slice to the consumer and the price of the slice. c. price of the slice of pizza.
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d. total amount that a consumer is willing to pay for a whole pizza, divided by the number of slices. 7. Economists believe that in regards to criminal behavior: a. people engage in criminal activity because they are genetically predisposed to do so. b. those choosing to commit criminal acts weigh the expected marginal benefits versus the expected marginal costs. c. economics can shed very little light on the subject. d. individuals are irrational and don’t respond to incentives 8. According to the law of demand, when will higher corn prices reduce the quantity demanded of corn? a.
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Exam_1-_Practice_Test_2 - Exam 1 Practice Test 2 1 Which of...

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