Which of the following statements is true about scarcity? Scarcity refers to the situation in which unlimited wants exceed limited resources Scarcity is only a problem when a country has too large a population Scarcity arises when there is a wide disparity in income distribution 6
Scarcity is not a problem for the wealthy Question 17 3 / 3 pts Economists assume that individuals behave in unpredictable ways are rational and respond to incentives prefer to live in a society that values fairness above all else will never take actions to help others Question 18 3 / 3 pts Which of the following is a normative economic statement? Rising global demand for coal has led to increases in the price of coal The state of Texas is considering increasing funds for light-rail development to promote the use of public transportation Pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable With rising mortgage rates and rising unemployment rates, the number of unsold homes has increased Question 19 3 / 3 pts Which of the following is a positive economic statement? The U.S. government should not have bailed out U.S. auto manufacturers The government should revamp the health care system If the price of iPhones falls, a larger quantity of iPhones will be purchased The standard of living in the United States should be higher Question 20 3 / 3 pts Jen makes $12 per hour and Sammie makes $20 per hour. Both Jen and Sammie like to eat hamburgers that cost $5 each. Select the correct answer below Sammie’s real wage is equal to 4 hamburgers Jen’s real wage is higher than Sammie’s real wage 7
Sammie’s real wage is equal to 100 hamburgers Jen and Sammie’s real wages are equal Jen’s real wage is equal to 5 hamburgers Part 2: 20 questions worth 2 points each for a total of 40 points. Question 21 2 / 2 pts Examining the conditions that could lead to a recession in an economy is an example of a macroeconomics topic. True False Question 22 2 / 2 pts Every individual, no matter how rich or poor, is faced with making trade-offs. True False Question 23 2 / 2 pts When voluntary exchange takes place, only one party gains from the exchange. True False Question 24 2 / 2 pts A college must decide if it wants to offer more Internet-based classes. This decision involves answering the economic question of "what to produce." True False Question 25 2 / 2 pts One desirable outcome of a market economy is that it leads to a more equitable distribution of income.