Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

Macroeconomics Principles Applications and Tools

Business

Quiz 2 :

The Key Principles of Economics

Quiz 2 :

The Key Principles of Economics

search
arrow
img Figure 2.2 -Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The reason why the production possibilities curve is shaped as it is (bowed outward) is because inputs for healthcare and highways are:
Free
Multiple Choice
Answer:

Answer:

B

arrow
When people interact in markets for their own self interest, it is described as the:
Free
Multiple Choice
Answer:

Answer:

B

arrow
The economic reason why you voluntarily pay tuition to get into the university/college that you are in right now is because:
Free
Multiple Choice
Answer:

Answer:

A

arrow
Spending money on a fixed budget is an example of:
Multiple Choice
Answer:
arrow
Suppose prices increase by 4% per year. What nominal percentage return on your savings account would you require to get a 1% real return?
Multiple Choice
Answer:
arrow
Suppose your bank pays you 6% interest per year on your savings account, so that $100 grows to $106 over a one- year period. If prices increase by 3% per year over that time, approximately how much real value do you gain by keeping $100 in the bank for a year?
Multiple Choice
Answer:
arrow
If a consumer can buy four pizzas for $24 and five pizzas for $25, then the marginal cost of the fifth pizza is:
Multiple Choice
Answer:
arrow
img Figure 2.1 -On the production possibilities curve in Figure 2.1 the gain from decreasing manufacturing production from 700 tons to 500 tons is:
Multiple Choice
Answer:
arrow
img Figure 2.4 -Joe runs a business and needs to decide how many hours to stay open. Figure 2.4 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe's marginal cost of staying open per hour is $40. How many hours should Joe stay open?
Multiple Choice
Answer:
arrow
img -Julianne runs a business and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that Julianne's marginal benefit of staying open per hour is $3. If she is following the marginal principle, how many hours should Julianne stay open?
Multiple Choice
Answer:
arrow
The marginal principle states that "we should increase the level of an activity as long as:
Multiple Choice
Answer:
arrow
Recall Application 2, "Why Not Walk Up an Escalator?," to answer the following questions -According to the application, an individual would walk up the stairs to listen to a music being played if:
Multiple Choice
Answer:
arrow
img Figure 2.4 -Joe runs a business and needs to decide how many hours to stay open. Figure 2.4 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 4 hours per day. If he is following the marginal principle, what must his marginal cost be?
Multiple Choice
Answer:
arrow
Suppose your bank pays you 5% interest per year on your savings account while prices increase by 3% per year over that time. Approximately how much nominal value do you gain by keeping $100 in the bank for a year?
Multiple Choice
Answer:
arrow
According to the marginal principle, an individual will do best by producing or consuming where:
Multiple Choice
Answer:
arrow
Recall Application 5, "The Declining Real Minimum Wage," to answer the following questions: -According to the application, if the nominal minimum wage is unchanged while prices fall, then the real minimum wage:
Multiple Choice
Answer:
arrow
What is the nominal value of money?
Multiple Choice
Answer:
arrow
img Figure 2.2 -Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The opportunity cost of the second new highway built in a year is:
Multiple Choice
Answer:
arrow
Recall Application 2, "Why Not Walk Up an Escalator?," to answer the following questions: -According to the application, most people stand still while using the escalator because:
Multiple Choice
Answer:
arrow
When deciding whether to engage in an activity or how much to do, people should follow:
Multiple Choice
Answer:
Showing 1 - 20 of 195