Lackawanna ECO105 2022 February Module 3 Quiz Latest

ECO105 Macroeconomics

Module 3 Quiz  

Question 1Which of the four types of economic decision makers is most important?

  households, because they demand goods and services and supply resources

  government, because it ultimately sets and enforces the "rules of the game"

  firms, because they produce all goods and services in the economy

  the rest of the world, because there are over 150 countries

 Question 2Harold, a delivery man, washes and irons his own shirts. Sarah,his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?

  Harold must be better at ironing than Sarah is.

  Sarah has a higher opportunity cost of laundering her clothes than Harold does.

  The opportunity cost of ironing is greater for Harold.

  Harold must enjoy ironing more than Sarah does.

 Question 3The objective of the household is to

  maximize household wealth

  acquire as many goods as possible

  own as much land as possible

  maximize utility

 Question 4Rationality in the household decision-making process means that

  everyone in the household agrees on all decisions

  households act in their own best interests

  all households make the same decisions

  households want to earn as much income as possible

 

Question 5Which resource generates the largest share of the income in the United States?

  entrepreneurial ability

  labor

  capital

  land

 Question 6Which of the following is an example of an in-kind transfer?

  food stamps

  welfare payments

  unemployment compensation payments

  charitable contributions

 Question 7Which of the following represents the largest source of income for U.S. households?

  wages and salaries

  transfer payments

  personal interest

  rental income

 Question 8Households supply four basic types of resources. They include allof the following except

  labor

  final goods and services

  capital

  natural resources

 Question 9Which of the following is an example of a durable good?

  food prepared at home

  binoculars

  motor oil

  high-fashion clothing

 Question 10A cottage industry is one that

  carries out production in workers' homes

  uses highly specialized resources in a complex production process

  produces rural housing

  produces cottage cheese

 Question 11The demand for a product is the amount that

  buyers are willing and able to purchase at alternative prices

  sellers are willing to sell at a particular price

  buyers purchase in the market

  buyers are willing to purchase at a given price

 Question 12The law of demand says that the lower the price of a good, other things constant,

  the larger the quantity demanded of that good

  the larger the demand for that good

  the smaller the demand for that good

  the smaller the quantity demanded of that good

 Question 13In what way is consumer demand different from consumer wants

  Demand takes into account the ability to pay.

  Demand is only for necessities.

  Demand is only for luxuries.

  Consumer wants are only for luxuries.

 Question 14Suppose you drink more tea because the price of coffee has increased. Which of the following best explains your action?

  the law of supply

  the substitution effect

  tea and coffee are complements

  the income effect

 Question 15The law of demand is illustrated by a demand curve that is

  vertical

  downward sloping

  upward sloping

  horizontal

 Question 16For which of the following would the income effect of a price change be greatest?

  ballpoint pens

  air travel to Australia

  college textbooks

  haircuts

 Question 17A demand curve usually has a

  positive slope because price and quantity demanded are inversely related

  negative slope because price and quantity demanded are inversely related

  negative slope because as price rises, demand falls

  positive slope because price and quantity demanded are positively related

 Question 18Which of the following will not shift the demand curve for movie tickets?

  a change in the cost of babysitting services

  a change in the price of movie tickets

  a change in the quality of television programs

  a change in the income of movie-goers

 Question 19Which of the following is most likely to be an inferior good?

  restaurant meals

  used clothing

  soft drinks

  airline travel

 Question 20Which of the following is most likely to be a normal good?

  trips to the laundromat

  bus rides

  macaroni-and-cheese dinners

  tickets to major league baseball games