Question (TCO 1) The general concern of economics is with the study of the

03 Jun Question (TCO 1) The general concern of economics is with the study of the

Question
(TCO 1) The general concern of economics is with the study of the

: degree of competition in stock and bond markets in the economy.

efficient use of limited productive resources to satisfy economic wants.

issue of equality in the distribution of income and wealth among households.

budget deficits in the domestic economy and trade deficits in the international economy.

Instructor Explanation: Chapter 1.

Points Received: 1 of 1

Comments:

Question 2. Question :

(TCO 1) The basic economic problem is essentially one of deciding how to make the best use of

: limited resources to satisfy limited economic wants.

limited resources to satisfy unlimited economic wants.

unlimited resources to satisfy unlimited economic wants.

unlimited resources to satisfy limited economic wants.

Points Received:

Comments:

Question 3. Question :

(TCO 1) Are the goods that businesses offer for “free” to consumers also free to society?

: Yes, because the individual consumer does not have to pay for them.

Yes, because the marginal benefit is greater than the marginal cost.

No, because scarce resources were used to produce the free goods.

No, because society does not assign a value to free goods.

Instructor Explanation: Chapter 1.

Points Received: 1 of 1

Comments:

Question 4. Question :

(TCO 1) The individual who brings together economic resources and assumes the risk in a capitalist economy is called the

: manager.

entrepreneur.

stockbroker.

banker.

Instructor Explanation: Chapter 1.

Points Received: 1 of 1

Comments:

Question 5. Question :

(TCO 1) A movement along the production possibilities curve would imply that

: the labor force has grown.

productivity has increased.

productivity has declined.

society has chosen a different set of outputs.

Instructor Explanation: Chapter 1.

Points Received: 0 of 1

Comments:

Question 6. Question :

(TCO 1) Which statement best describes a capitalist economy?

: The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government.

The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets.

The production and allocation of goods and services is determined primarily through markets.

The production and allocation of goods and services is determined primarily through government.

Instructor Explanation: Chapter 2.

Points Received: 0 of 1

Comments:

Question 7. Question :

(TCO 1) The term dollar votes means

: inflation will occur if consumers don’t spend wisely.

voters may be offered dollars to help elect certain political candidates.

government is responsible for determining what will be considered legal tender.

consumers “vote” for certain products to be produced by how they spend their incomes.

Instructor Explanation: Chapter 2.

Points Received: 1 of 1

Comments:

Question 8. Question :

(TCO 1) Which of the following would be primarily determined in the resource market?

: The price of compact discs

The wage rates for electricians

The number of automobiles produced

The amount of money in circulation

Instructor Explanation: Chapter 2.

Points Received: 0 of 1

Comments:

Question 9. Question :

(TCO 1) Which is a major feature of the market system?

: Government set prices in all markets

Reallocation of all resources from private to public uses

The right to own private property and control resource use

Central planning by government to provide goods and services

Question 10. Question :

(TCO 1) Consider a barter situation where you have pens and you want pencils. To achieve your objective, there must be a(n)

use of capital goods.

entry and exit from the market.

large number of sellers.

coincidence of wants.

Instructor Explanation: Chapter 2.

Points Received: 0 of 1

Comments:

Question 11. Question :

(TCO 1) Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. What is the opportunity cost of Tammie’s trip to the concert? Show your calculations

:

Question 12. Question :

(TCO 1) Identify some intrinsic qualities of capitalist and command economic systems. Identify two countries that practice each.

: