Homework 1 In Tutorial Library

This is Tutorial details page

TITLE: Homework 1

UNIVERSITY / INSTITUTE: Purdue University

CLASS / COURSE: ECON 25100: Microeconomics

QUESTION DESCRIPTION:

 

Homework 1
 
 
 
1.   The opportunity cost to a consumer who smokes cigarettes is the: 
 
 A. Products that the consumer could have bought instead of cigarettes      
B. Costs imposed on others who inhale tobacco smoke  
C. Amount of tax levied on the cigarettes this consumer buys  
D. Cost of complementary products such as lighters, ashtrays, and cigarette holders  
 
2.   The observation that people compare the marginal benefits with the marginal costs in making such decisions as how to spend time, which products to buy, whether or not to work, and which goods to produce and sell, is most closely associated with: 
 
A. The other things being equal assumption  
 B. The economic perspective      
C. Macroeconomic analysis  
D. Policy economics  
 
3.   The role of an assumption in an economic theory is to: 
 
A. Add realism  
B. Prove the theory  
C. Cover special cases  
 D. Simplify the theory      
 
4.   Which is an illustration of a macroeconomic question? 
 
A. Should the salaries of financial executives be regulated by the government?  
 B. Are increasing wage demands by workers contributing to price inflation?      
C. What is the least costly way to produce automobiles and trucks in the United States?  
D. Will the introduction of a new computer chip change the demand for computers?  
 
5.   Which would be a positive economic statement? 
 
 
 
A. Government should provide free housing shelter for the homeless  
B. The minimum wage should be increased to give people a decent wage  
C. Americans should buy American products to boost the national economy  
 D. Stock prices rose to a new record last month for the fourth month in a row      
 
6.   Suppose that a consumer purchases just two goods, good X and good Y. The ratio of the price of good Y to good X is the: 
 
A. Intercept for the Y axis of the budget line  
B. Intercept for the X axis of the budget line  
C. Size of the shift in the budget line  
 D. Slope of the budget line      
 
7.   A point to the left of a budget line is: 
 
 A. Attainable, but a point to the right is unattainable      
B. Unattainable, but a point to the right is attainable  
C. A tradeoff, but a point to the right is an opportunity cost  
D. An opportunity cost, but a point to the right is a tradeoff  
 
8.   The role of the entrepreneur in society is to: 
 
A. Provide capital to the firm which the management combines with labor  
 B. Bring the factors of production together and take the risks of producing      
C. Control the land upon which all production takes place to get the most rent  
D. Regulate what products are considered safe to market  
 
9.   Which of the following is one of the four simplifying assumptions made in constructing the production possibilities model? 
 
A. The state of technology is constantly changing  
B. More than two products are produced  
 C. The economy is fully employed and is using least-cost methods of production    
D. The quantities of all resources available to the economy are not fixed, but are variable  
 
10. The combination of food and clothing shown by point G on the above graph: 
 
 A. Is not attainable, given society's available resources and technology      
B. Can be attained only if some of society's resources are unemployed  
C. Suggests that the law of increasing opportunity costs is not relevant in this case  
D. Results only because society allocates its resources inefficiently  
 
11. The combination of food and clothing shown by point F on the above graph: 
 
A. Is an efficient use of society's resources because it is below the production possibilities curve  
B. Would be a desirable combination of outputs only if there was no international trade  
 C. Is attainable but involves the unemployment or inefficient use of some of society's resources      
D. Is not attainable with current resources and technology  
 
12.   Along a production possibilities curve, an increase in the production of one good can be accomplished only by: 
 
 A. Decreasing the production of the other good      
B. Increasing the production of the other good  
C. Holding constant the production of the other good  
D. Decreasing the price of the other good  
 
13.   The law of increasing opportunity costs says that: 
 
A. Costs of production increase and then decrease  
B. Increases in wages cause increases in the costs of production  
 C. Along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good    
D. Along a production possibilities curve, increases in the production of one good make the production of that good become easier and easier  
 
14.   The production possibilities curve bows outward from the origin because: 
 
A. Opportunity costs decrease as the production of a good increases  
 B. Opportunity costs increase as the production of a good increases      
C. More production of one good results in more production of the other good  
D. Resources are of uniform quality  
 
15.   If a production possibilities curve is concave and not a straight line, then: 
 
A. Resources are equally suited to producing alternative products  
 B. Resources are not equally suited to producing alternative products      
C. Resources are perfectly interchangeable to alternative uses  
D. There are unemployed resources  
 
16. The graph above shows the production possibilities curve for an economy producing two goods, X and Y. All of the following may allow the economy to produce combination D in the future, except? 
 
 A. Lower unemployment   
B. Increasing labor supply  
C. Economic growth    
D. Technological advances  
 
17.   From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the: 
 
A. Marginal cost of waiting is less than the marginal benefit of being served  
 B. Marginal cost of waiting is greater than the marginal benefit of being served  
C. Management is exhibiting irrational behavior by not maximizing profits  
D. Management is making an assumption that other things are equal  
 
18.   The slope of a straight line is the ratio of the: 
 
A. Absolute horizontal change to the absolute vertical change between two points on the line  
 B. Absolute vertical change to the absolute horizontal change between two points on the line      
C. Horizontal intercept to the absolute vertical change  
D. Vertical intercept to the absolute horizontal change  
 
19.   If a linear relation is described by the equation was C = 35 - 5D, then the slope of the line would be: 
 
A. 35 and the intercept 5  
 B. -5 and the intercept 35      
C. 5 and the intercept 35  
D. -35 and the intercept 5  
 
20.   If you knew that the vertical intercept for a straight line was 150 and that the slope of the line was 4, then the dependent variable would be 250 when the value of the independent variable is: 
 
A. 15  
B. 20  
 C. 25    
D. 30  
 
 

SOLUTION DESCRIPTION: Completed Solution is attached. Click on Buy button and then download file to get full solution.

SUBJECTS / CATEGORIES:
1. Business Economics
2. Economics
3. Microeconomics

$3.00 USD

Press BUY button to download solution of this Question.

Buy

Comment

    No comment on this tutorial.