Principles of Economics-T123PWB-4
Dr. Klimis Vogiatzoglou
Wrap-Up Quiz 1
14/01/2023
Student:
The time limit for this quiz is 20 minutes.
Questions
1. An economic model is
a. a mechanical machine that replicates the functioning of the economy.
b. a fully detailed, realistic description of the economy.
c. a simplified representation of some aspect of the economy.
d. a computer program that predicts the future of the economy.
2. the circular-flow diagram illustrates that, in markets for the factors of production,
a. households are sellers, and firms are buyers.
b. households are buyers, and firms are sellers.
c. households and firms are both buyers.
d. households and firms are both sellers.
3. a point inside the production possibilities frontier is
a. efficient but not feasible.
b. feasible but not efficient.
c. both efficient and feasible.
d. neither efficient nor feasible.
4. all of the following topics fall within the study of microeconomics except
a. the impact of cigarette taxes on the smoking behavior of teenagers.
b. the role of microsoft’s market power in the pricing of software.
c. the effectiveness of antipoverty programs in reducing homelessness.
d. the influence of the government budget deficit on economic growth.
5. A nation will typically import those goods in which
a. the nation has an absolute advantage.
b. the nation has a comparative advantage.
c. other nations have an absolute advantage.
d. other nations have a comparative advantage.
6. Suppose that in the united States, producing an aircraft takes 10,000 hours of labor and
producing a shirt takes 2 hours of labor. in china, producing an aircraft takes 40,000 hours of
labor and producing a shirt takes 4 hours of labor. What will these nations trade?
a. china will export aircraft, and the united States will export shirts.
b. china will export shirts, and the united States will export aircraft.
c. Both nations will export shirts.
d. there are no gains from trade in this situation.
7. kayla can cook dinner in 30 minutes and wash the laundry in 20 minutes. her roommate
takes twice as long to do each task. how should the roommates allocate the work?
a. kayla should do more of the cooking based on her comparative advantage.
b. kayla should do more of the washing based on her comparative advantage.
c. kayla should do more of the washing based on her absolute advantage.
d. there are no gains from trade in this situation.
8. the best definition of a market is
a. a store that offers a variety of goods and services.
b. a place where buyers meet and an auctioneer calls out prices.
c. a group of buyers and sellers of a good or service.
d. a venue where the sole supplier of a good offers its product.
9. in a perfectly competitive market,
a. every seller tries to distinguish itself by offering a better product than its rivals.
b. every seller takes the price of its product as set by market conditions.
c. every seller tries to undercut the prices charged by its rivals.
d. one seller has successfully outcompeted its rivals so no other sellers remain.
10. the market for which product best fits the definition of a perfectly competitive market?
a. eggs
b. tap water
c. movies
d. computer operating systems
11. A change in which of the following will Not shift the demand curve for hamburgers?
a. the price of hot dogs
b. the price of hamburgers
c. the price of hamburger buns
d. the income of hamburger consumers
12. Which of the following will shift the demand curve for pizza to the right?
a. an increase in the price of hamburgers, a substitute for pizza
b. an increase in the price of root beer, a complement to pizza
c. the departure of college students, as they leave for summer vacation
d. a decrease in the price of pizza