ECON 200

Question 1

Something is a resource if?

Answer 1

Humans see it as potentially useful

Question 2

I am a college student deciding what career to pick. I could become a teacher and make $40,000. I could become an economist and make $60,000, or an engineer and make $80,000. In terms of foregone salaries, what is the opportunity cost of becoming a teacher?

Answer 2

$80,000

Question 3

Transaction costs include

Answer 3

All of the above:
transportation and packaging costs, bargaining and negotiation costs, enforcement and policing costs

Question 4

The marginal value of a good is the value obtained from.

Answer 4

One additional unit of a good

Question 5

You bought a gym membership for $20 that allows you to visit the gym at a cost of $5 per visit. The marginal cost of your twentieth visit to the gym is.

Answer 5

$5

Question 6

Institutions include

Answer 6

norms, customs, and beliefs

Question 7

A country’s PPF might shift or rotate inward as a result of

Answer 7

a war or natural disaster.

Question 8

Which of the following is NOT considered a condition necessary for trade?

Answer 8

advance payment

Question 9

An experienced business person is better than her assistant in customer relations and accounting. She has a comparative advantage in?

Answer 9

either customer relations or accounting, but not both

Question 10

Explain why trade is not a zero-sum game?

Answer 10

Trade is not a zero-sum game; a zero-sum game is when one person wins and the other loses. In a trade, both people benefit.

Question 11

What is the study of how people make decisions in the face of scarcity?

Answer 11

economics

Question 12

The idea we have limited resources but unlimited wants?

Answer 12

scarcity

Question 13

The costs of getting goods from sellers to buyers is

Answer 13

transaction cost

Question 14

Which of the following is not a characteristic of money?

Answer 14

Intrinsic Value

Question 15

The additional cost has taken on a decision

Answer 15

Marginal Cost

Question 16

Rules for interaction such as laws or social norms

Answer 16

Institutions

Question 17

The study of how large groups or continues to make decisions

Answer 17

Macroeconomics

Question 18

A graph that shows all combinations of two goods that are possible to produce given limited resources

Answer 18

PPF

Question 19

Is it possible for people/countries to consume beyond their PPFs?

Answer 19

Yes, with trade

Question 20

A technological innovation benefiting production of one output, but not both, will cause a PPF shift or pivot?

Answer 20

Pivot

Question 21

The economic system based on a central planner determining production and the allocation of goods

Answer 21

Command-based economy

Question 22

All of the following are true about Adam Smith’s beliefs except

Answer 22

He believed market economies were perfect and could never have any problems

Question 23

Land, labor, and capital are the three main categories of what?

Answer 23

Resources

Question 24

True/False: Objective value does depend on personal feelings, opinions, or beliefs

Answer 24

False (subjective value does)

Question 25

True/False: to maximize utility, people should consume up to the point where MB > MC

Answer 25

False

Question 26

How individuals make decisions in the face of scarcity

Answer 26

Microeconomics