ECO203 Assignments Week 1 – Quiz

Question 1

1 / 1 pts

The self-interest assumption is made by economists because

it allows economist security of revenue.

Correct!

economists believe that human behavior is influenced by costs and benefits, and the assumption allows economists to predict the average behavior of a group.

economists believe that human motives don’t matter in economic decision making.

it allows economists to predict the average of a group.

economists believe that human behavior is influenced by costs and benefits.

there are no other human motives in economics.

The answer can be found in Section 1.3 SOCIETY’S CHOICES: THE PRODUCTION POSSIBILITIES CURVE in Macroeconomics

Question 2

1 / 1 pts

Which of the following is a macroeconomic issue?

the price of cell phone service.

unemployment in the steel industry.

Correct!

the growth rate of total output.

the number of new cars produced.

the price of butter.

The answer can be found in Section 1.1 WHAT IS ECONOMICS? in Macroeconomics

Question 3

0 / 1 pts

When price changes, there is an opposite change in the

level of technology and income.

Correct Answer

quantity demanded.

supply.

demand.

You Answered

quantity supplied.

The answer can be found in Section 3.1 DEMAND in Macroeconomics

Question 4

1 / 1 pts

Demand relates the various amounts that consumers are willing to buy over a specified time period

when prices increase.

as their tastes change.

as their incomes change.

Correct!

at various prices.

The answer can be found in Section 3.1 Demand in Macroeconomics

Question 5

1 / 1 pts

A production possibilities curve shows

that in order to acquire more of one good, none of the alternative good must be given up.

Correct!

that in order to acquire more of one good, some of the alternative good must be given up.

that any amount of goods could be produced by society if people worked harder.

various combinations of guns, bullets, bread, and butter that can be produced under conditions of 6 percent unemployment.

The answer can be found in Section 1.3 SOCIETY’S CHOICES: THE PRODUCTION POSSIBILITIES CURVE in Macroeconomics

Question 6

1 / 1 pts

In a market economic system, the productive resources are owned by

anyone; it does not matter who owns the resources in a market system.

individuals, except for capital, which is owned by the government.

business firms only.

Correct!

individuals.

the government.

The answer can be found in Section 2.2 THE BASIC ECONOMIC QUESTIONS in Macroeconomics

Question 7

1 / 1 pts

In economics, scarcity means that

Correct!

there are not sufficient resources to produce everything that people want.

poverty will always exist.

a country can never feed all of its citizens.

the price of a good may increase more rapidly than the general price level.

there is not enough of a particular good for people to buy all they want at the prevailing price.

The answer can be found in Section 1.1 WHAT IS ECONOMICS? in Macroeconomics

Question 8

1 / 1 pts

If caviar is a normal good, a decrease in income will

increase the production of caviar.

shift the demand curve for caviar to the right.

Correct!

shift the demand curve for caviar to the left.

cause the price of caviar to increase.

The answer can be found in Section 3.1 DEMAND in Macroeconomics

Question 9

1 / 1 pts

The basis for a market solution to the basic economic questions is

a division of governmental functions into federal and state levels.

a government that never participates in economic activities.

Correct!

a well-established system of property rights.

a framework for the implementation of comparative advantages.

a central market organization.

The answer can be found in Section 2.4 THE ECONOMIC ROLE OF GOVERNMENT in Macroeconomics

Question 10

1 / 1 pts

Capital consists of

stocks and bonds.

Correct!

aids to production created by humans.

the assets of upper-income groups.

the assets of the government.

the assets of a firm.

The answer can be found in Section 2.1 LIMITED RESOURCES in Macroeconomics

Quiz Score: 9 out of 10