1st Semester Final - True/False

Question 1

Positive Economics refers to making value judgments about existing or proposed economic policies.

Answer 1

False

Question 2

Normative Economics observes economic choices and predicts economic events.

Answer 2

False

Question 3

Menger proposed that an individual’s decisions are based on personal utility.

Answer 3

True

Question 4

Economics is considered science.

Answer 4

True

Question 5

A line graph provides more data than a tabular model.

Answer 5

True

Question 6

On a PPC, the point on the curve represent inefficient the production.

Answer 6

False

Question 7

Financial capital is the tool that business firms use to produce goods and services.

Answer 7

False

Question 8

Entrepreneurship is the most important factor of production.

Answer 8

True

Question 9

Transfer payments involve the government.

Answer 9

True

Question 10

If the government receives less in taxes than it is paying out, it is operating under a budget surplus.

Answer 10

False

Question 11

Dissaving is any time households withdraw money from an account over borrow it.

Answer 11

True

Question 12

Crowding out has nothing to do with government budget deficits.

Answer 12

False

Question 13

A financial market is the collection of a nation’s financial institutions.

Answer 13

True

Question 14

Inferior Goods increase in sales as consume income increases.

Answer 14

False

Question 15

When a demand curve stays the same, economists say that the product is experiencing a change in demand.

Answer 15

False

Question 16

Whenever a change in price causes a change in the number of items demanded, a change in quantity demanded has occured.

Answer 16

True

Question 17

US currency is the currently based on gold and silver.

Answer 17

False

Question 18

According to the Wolrd Factbook, the USA now has the 3rd largest GDP )gross domestic product) in the world.

Answer 18

True

Question 19

The principle of Diminishing Marginal Utility states that people tend to receive less and less additional satisfaction from any good or service as they recieve more and more of it during a specific period of time.

Answer 19

True

Question 20

Complementary goods work best when separated.

Answer 20

False

Question 21

China has a the largest GDP in the world.

Answer 21

True

Question 22

The average American has no idea how bad our debt situation is.

Answer 22

True

Question 23

A shift to the right on the supply schedule generally means that a decrease in supply has occured.

Answer 23

False

Question 24

When a supply schedule is plugged on a graph, it is called a supply curve.

Answer 24

True

Question 25

Supply is a the amount of goods and services business firms are willing and able to prodiuve at differently price

Answer 25

True

Question 26

The point at which buyers and sellers disagree is called the Market Equilibrium Point.

Answer 26

False

Question 27

A surplus is an excess of unsold products.

Answer 27

True

Question 28

Opportunity benefit is the regret you feel over a choice you made.

Answer 28

False