Who or what is responsible for bringing together scarce resources to produce most of the goods and services in the U.S.? A) the U.S. government B) the United Nations C) the Federal Reserve Bank D) markets and prices ANSWER D
Date: September 9th, 2020
Which of the following is a fundamental topic addressed by microeconomics? A) whether to extend unemployment insurance B) determining how many new iPhones the Apple company should produce C) the level of inflation in the country D) the impact of interest rates on savings in the economy ANSWER B
Date: September 9th, 2020
A “twinkie tax” on fatty foods would aim to A) reduce the consumption of fatty foods. B) reduce the production of fatty foods. C) raise tax revenues for other uses. D) All of the above. ANSWER D
Date: September 9th, 2020
Which choice below illustrates the tradeoff faced by surfboard manufacturers after Clark foam shut down in 2005, eliminating 80% of the worlds foam blanks used to shape surfboards? The firms decide to A) substitute foam blanks for balsa wood blanks as used in the 1940s. B) advertise their new surfboard wax. C) offer surf classes. […]
Date: September 9th, 2020
In the Soviet Union, which boasted about giving every worker a job, some workers were given the task of digging holes and filling them again. What function of microeconomic analysis did this policy address? A) What goods/services to produce B) How to produce the goods and services C) Who gets the goods and services D) […]
Date: September 9th, 2020
The objective of creating a permit trading system for SO2 (sulfur dioxide) is to A) employ environmental protection agency (EPA) workers. B) create a market in which one did not previously exist. C) make annual company tax reporting more difficult. D) increase the incidence of acid rain. ANSWER B
Date: September 9th, 2020
In Faraway country, every citizen receives a birthday cake voucher as a gift for their birthday. What function of microeconomic analysis does this public policy address? A) What goods/services to produce B) How to produce the goods and services C) Who gets the goods and services D) A and B ANSWER C
Date: September 9th, 2020
A country produces cars and books. All of its resources are currently being employed in the production of these two goods. If this country increases the production of cars, what will happen with the quantity produced of books? A) The quantity of books produced will not change. B) The quantity of books produced will decrease. […]
Date: September 9th, 2020
Which of the following situations represents a trade-off? A) Each additional hour of leisure reduces Billy’s consumption of goods by $15. B) Bob ate a slice of cranberry pie with one scoop of vanilla ice cream. C) Jill can afford either a sports car or a 4-year college tuition. D) A and C ANSWER […]
Date: September 9th, 2020
Governments do not respond to prices. Indicate whether the statement is true or false ANSWER False. When products or services that governments purchase become more expensive, governments tend to purchase less of the products. For example, when the price of gasoline increased dramatically in the spring of 2006, the state of Georgia restricted the […]
Date: September 9th, 2020
