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ECO111 - Quizz01 - Spring2024 (1) - Nguyễn Thùy Dương
ECO111 - Quizz01 - Spring2024 (1) - Nguyễn Thùy Dương
Class: IB1905
Term: Spring2024
Handed out:
Time allowed:
STUDENT INFORMATION
MARK MARKED BY
Signature of Proctor
(NAME AND SIGNATURE)
ECO_111__No__Q01
Multiple Choice
Identify the choice that best completes the statement or answers the question.
QN=1 The marginal benefit John gets from eating a fourth cheese-
burger at a picnic is
a. the total benefit John gets from eating four cheeseburgers
minus the total benefit John gets from eating three cheese-
burgers.
b. the same as the total benefit of eating four cheeseburgers.
c. less than the marginal cost of eating the fourth cheeseburger
since he chose to eat the fourth cheeseburger.
d. the total benefit John gets from eating five cheeseburgers
minus the total benefit John gets from eating four cheese-
burgers.
QN=2 Mitch has $100 to spend and wants to buy either a new am-
plifier for his guitar or a new mp3 player to listen to music
while working out. Both the amplifier and the mp3 player
cost $100, so he can only buy one. This illustrates the basic
concept that
a. trade can make everyone better off.
b. people face trade-offs
c. rational people think at the margin.
d. people respond to incentives.
QN=9 Moira decides to spend two hours taking a nap rather than
attending her classes. Her opportunity cost of napping is
a. the value of the knowledge she would have received had she
attended class.
b. the $30 she could have earned if she had worked at her job
for those two hours.
c. the value of her nap less the value of attending class.
d. nothing, since she would valued sleep more than attendance
at class.
QN=25 When a society cannot produce all the goods and services
people wish to have it is said that the economy is experienc-
ing
a. scarcity.
b. communism.
c. externalities.
d. market failure.
QN=28 The terms equality and efficiency are similar in that they
both refer to benefits to society. However they are different
in that
a. equality refers to uniform distribution of those benefits and
efficiency refers to maximizing benefits from scarce re-
sources.
b. equality refers to maximizing benefits from scarce resources
and efficiency refers to uniform distribution of those bene-
fits.
c. equality refers to everyone facing identical tradeoffs and ef-
ficiency refers to the opportunity cost of the benefits.
d. equality refers to the opportunity cost of the benefits and ef-
ficiency refers to everyone facing identical tradeoffs.
QN=41 Refer to Figure 2-1. Which arrow shows the flow of spending by
households?
a. A
b. B
c. C
d. D
QN=4 Refer to Figure 2-8, Panel (a). In order to gain 2 donuts by moving
3 from point L to point M, society must sacrifice
a. (i) efficiency.
b. (ii) employment.
c. (iii) 4 cups of coffee.
d. More than one of (i), (ii), and (iii) is correct.
QN=54 The two basic reasons why economists often appear to give
conflicting advice to policymakers are differences in
a. opinions and education.
b. opinions and values.
c. scientific judgments and education.
d. scientific judgments and values.
a. 75 waffles
b. 150 waffles
c. 250 waffles
d. 325 waffles
QN=5 Refer to Figure 2-9, Panel (a). In order to gain 2 radios by moving
8 from point S to point T, society must sacrifice
a. (i) 6 televisions.
b. (ii) employment.
c. (iii) efficiency.
d. More than one of (i), (ii), and (iii) is correct.
QN=70 Refer to Figure 2-2. Alisha regularly buys fruits and vegeta-
bles at a grocery store. Santo regularly pays a lawn-care
company to mow his lawn. If the flow of fruits and vegeta-
bles from the grocery store to Alisha is represented by an ar-
row from Box C to Box B of this circular-flow diagram, then
the money paid by Santo to the lawn-care company is repre-
sented by an arrow
QN=7 Refer to Table 4-2. Whose demand does not obey the law of de-
6 mand?
a. Audrey’s
b. Bob’s
c. Chuck’s
d. Dottie’s
QN=83 Which of the following events would cause the price of or-
anges to fall?
a. (i) There is a shortage of oranges.
b. (ii) An article is published in which it is claimed that tanger-
ines cause a serious disease, and oranges and tangerines are
substitutes.
c. (iii) The price of land throughout Florida decreases, and
Florida produces a significant proportion of the nation’s or-
anges.
d. All of (i), (ii), and (iii) are correct.
QN=92 What will happen in the rice market now if sellers expect
higher rice prices in the near future?
a. The supply of rice will increase.
b. The supply of rice will decrease.
c. The supply of rice will be unaffected.
d. The demand for rice will decrease.
QN=93 Other things equal, when the price of a good falls, the
a. quantity demanded of the good decreases.
b. supply decreases.
c. quantity supplied of the good decreases.
d. demand increases.
QN=94 In a market economy, supply and demand determine
a. both the quantity of each good produced and the price at
which it is sold.
b. the quantity of each good produced, but not the price at
which it is sold.
c. the price at which each good is sold, but not the quantity of
each good produced.
d. neither the quantity of each good produced nor the price at
which it is sold.