devry ECON-312 week 1 quiz

(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.

Question 2. Question :

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

Student Answer: 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.

Question 3. Question :

(TCO 1) From an economic perspective, when a student decides to attend another year of college, the student has concluded that the marginal

Student Answer: costs of attending college has decreased that year.

benefits of attending college has increased that year. benefits of attending college are greater than the marginal costs.

costs of attending college will be subsidized by someone else such as parents or the government.

Question 4. Question :

(TCO 1) Which is not considered to be an economic resource?

Student Answer: Land (or natural resources)

CORRECT Money

Labor

Tools and machinery

I

Question 5. Question :

(TCO 1) If an economy is producing at a point inside a production possibilities curve, then

Student Answer: the economy is efficient.

there is economic growth.

resources are unemployed.

resources are fully employed.

Instructor Explanation: Chapter 1.

Points Received: 0 of 1

Comments:

Question 6. Question :

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

Student Answer: 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.

Question 7. Question :

(TCO 1) The development of CDs and DVDs that significantly reduced the market for cassette tapes would be an example of

Student Answer: specialization.

derived demand.

roundabout production.

creative destruction.

Question 8. Question :

(TCO 1) The circular flow model

Student Answer: assumes that central planning is taking place.

illustrates how natural resources are created.

illustrates how money is created by the banking system.

illustrates the interdependence of businesses and consumers.

Instructor Explanation: Chapter 2.

Points Received: 1 of 1

Comments:

Question 9. Question :

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

Student Answer: Government set prices in all markets

Reallocation of all resources from private to public use The right to own private property and control resource use

Central planning by government to provide goods and services

Instructor Explanation: Chapter 2

Question 10. Question :

(TCO 1) Which is necessary to make a trade in a barter economy?

Student Answer: Money

Unlimited wants

A medium of exchange

A coincidence of wants

Instructor Explanation: Chapter 2.

Points Received: 1 of 1

Comments:

Question 11. Question :

(TCO 1) After graduating from high school, Ron Willis plans to go to college. The college tuition is $15,000 a year. But, instead of going to college, Ron could take a full-time job paying $20,000. If Ron decides to go to college, what is his opportunity cost for attending for one year? Show your calculations.

Question 12. Question :

(TCO 1) How do the different economic systems (capitalism and socialism) differ in the way they answer these three questions – What to Produce? How to Produce? and For Whom to Produce?