ECON102 Lecture Notes - Opportunity Cost
ECON102 Full Course Notes
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1. Which of the following groups of countries are all advanced economies?
Ā | Ā |
Hong Kong, Japan, France, and the United Kingdom |
Ā | Ā |
Italy, the United States, China, and Russia |
Ā | Ā |
Singapore, Russia, France, and Chad |
Ā | Ā |
Australia, Brazil, and the United States |
QUESTION 2
1. The most people live in ________ economies and the fewest people live in ________ economies.
Ā | Ā |
developing; emerging market |
Ā | Ā |
advanced; emerging market |
Ā | Ā |
emerging market; developing |
Ā | Ā |
advanced; developing |
QUESTION 3
1. Households and firms in the U.S. economy interact with those in the rest of the world in the ________ market and the ________ market.
Ā | Ā |
goods; financial |
Ā | Ā |
government; goods |
Ā | Ā |
goods; factor |
Ā | Ā |
financial; factor |
QUESTION 4
1. As a factor of production, oil reserves are counted as
Ā | Ā |
labor. |
Ā | Ā |
capital. |
Ā | Ā |
entrepreneurship. |
Ā | Ā |
land. |
QUESTION 5
1. ________ the owners of the factors of production, while ________ what amounts of those factors to hire.
Ā | Ā |
Households are; the government determines |
Ā | Ā |
Firms are; households determine |
Ā | Ā |
The government is; firms determine |
Ā | Ā |
Households are; firms determine |
QUESTION 6
1. The emerging market economies are
Ā | Ā |
the nations that are currently agricultural in nature. |
Ā | Ā |
most of the nations of Western Europe. |
Ā | Ā |
the largest grouping including the nations of China and India. |
Ā | Ā |
in the transition from state-owned production to free markets. |
QUESTION 7
1. In the United States, the productive factor that, as a group, receives the largest fraction of the nation's total income was
Ā | Ā |
consumption of goods and services. |
Ā | Ā |
entrepreneurship. |
Ā | Ā |
capital. |
Ā | Ā |
labor. |
QUESTION 8
1. Items bought by individuals to provide personal enjoyment are termed
Ā | Ā |
personal goods. |
Ā | Ā |
consumption of goods. |
Ā | Ā |
consumption or investment goods. |
Ā | Ā |
standard goods. |
QUESTION 9
1. In the advanced economies, ________ of the factories use advanced capital equipment and in the developing economies ________ of the factories use advanced capital equipment
Ā | Ā |
virtually all; none |
Ā | Ā |
some; some |
Ā | Ā |
virtually all; virtually all |
Ā | Ā |
virtually all; some |
QUESTION 10
1. The productive resource that includes all the "gifts of nature" is called
Ā | Ā |
land. |
Ā | Ā |
labor. |
Ā | Ā |
entrepreneurship. |
Ā | Ā |
capital. |
QUESTION 11
1. What would be an example of government good?
Ā | Ā |
Donald Trump purchases furniture for his office. |
Ā | Ā |
Antonio, the manager of the local Taco Hut, purchases a new deep fryer. |
Ā | Ā |
The local driver's license office purchases a new digital camera and printer. |
Ā | Ā |
Jake buys an iPhone. |
QUESTION 12
1. The world population is approximately ________ people.
Ā | Ā |
2 trillion |
Ā | Ā |
680 million |
Ā | Ā |
6.8 billion |
Ā | Ā |
6.8 million |
QUESTION 13
1. Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as
Ā | Ā |
U.S. exports of goods and services. |
Ā | Ā |
U.S. government goods and services. |
Ā | Ā |
foreign capital goods. |
Ā | Ā |
U.S. consumer goods and services. |
QUESTION 14
1. Of the following, the federal government obtains most revenue from
Ā | Ā |
corporate income taxes. |
Ā | Ā |
excise taxes. |
Ā | Ā |
sales taxes. |
Ā | Ā |
social security taxes. |
QUESTION 15
1. Items bought by businesses to help produce other goods and services are called
Ā | Ā |
capital goods. |
Ā | Ā |
government goods and services. |
Ā | Ā |
consumption of goods and services. |
Ā | Ā |
exports of goods and services. |
QUESTION 16
1. The majority of the income earned in the United States is paid in
Ā | Ā |
profit. |
Ā | Ā |
interest. |
Ā | Ā |
rent. |
Ā | Ā |
wages. |
QUESTION 17
1. Dan missed class the day the professor covered the circular flow model. Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market
Ā | Ā |
must include a written contract between buyers and sellers. |
Ā | Ā |
requires a physical location for buyers and sellers to get together. |
Ā | Ā |
is only a place to purchase groceries. |
Ā | Ā |
is an arrangement that brings buyers and sellers together. |
QUESTION 18
1. The United States possesses a large amount of human capital. As a result of this fact, in the United States, there is a
Ā | Ā |
highly skilled and educated labor force. |
Ā | Ā |
a large number of kind and generous humans. |
Ā | Ā |
a large number of people and a great deal of land. |
Ā | Ā |
a large amount of machinery and equipment. |
QUESTION 19
1. Which of the following correctly lists the categories of factors of production?
Ā | Ā |
labor, machines, buildings, capital, and entrepreneurship |
Ā | Ā |
land, buildings, capital, and entrepreneurship |
Ā | Ā |
land, labor, capital, and entrepreneurship |
Ā | Ā |
forests, fish, buildings, capital, and entrepreneurship |
QUESTION 20
1. Which of the following correctly lists the categories of factors of production?
Ā | Ā |
capital, money, and labor |
Ā | Ā |
hardware, software, land, and money |
Ā | Ā |
land, labor, capital, and entrepreneurship |
Ā | Ā |
machines, buildings, land, and money |
QUESTION 21
1. In the United States, the poorest 20 percent of households receive roughly ________ percent of total income.
Ā | Ā |
10 |
Ā | Ā |
3 |
Ā | Ā |
15 |
Ā | Ā |
20 |
QUESTION 22
1. What would be an example of a consumption service?
Ā | Ā |
Jake buys an iPhone. |
Ā | Ā |
The local driver's license office purchases a new digital camera and printer. |
Ā | Ā |
Antonio, the manager of the local Taco Hut, purchases a new deep fryer. |
Ā | Ā |
Rhianna gets a haircut. |
QUESTION 23
1. The total value of capital in the United States is around
Ā | Ā |
$47 trillion. |
Ā | Ā |
$10 trillion. |
Ā | Ā |
$100 trillion. |
Ā | Ā |
$79 trillion. |
QUESTION 24
1. An export good is a good produced
Ā | Ā |
by foreigners in the United States and purchased by U.S. households. |
Ā | Ā |
in another country and purchased by U.S. residents. |
Ā | Ā |
in the United States and sold to foreigners living in the United States. |
Ā | Ā |
in the United States and sold in other countries. |
QUESTION 25
1. ________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital.
Ā | Ā |
Interest is; wages are; profit is |
Ā | Ā |
Rent is; wages are; interest is |
Ā | Ā |
Rent is; interest is; wages are |
Ā | Ā |
Mortgages are; interest is; wages are |
1. Which of the following groups of countries are all advanced economies?
Ā | Ā |
Hong Kong, Japan, France, and the United Kingdom |
Ā | Ā |
Italy, the United States, China, and Russia |
Ā | Ā |
Singapore, Russia, France, and Chad |
Ā | Ā |
Australia, Brazil, and the United States |
QUESTION 2
1. The most people live in ________ economies and the fewest people live in ________ economies.
Ā | Ā |
developing; emerging market |
Ā | Ā |
advanced; emerging market |
Ā | Ā |
emerging market; developing |
Ā | Ā |
advanced; developing |
QUESTION 3
1. Households and firms in the U.S. economy interact with those in the rest of the world in the ________ market and the ________ market.
Ā | Ā |
goods; financial |
Ā | Ā |
government; goods |
Ā | Ā |
goods; factor |
Ā | Ā |
financial; factor |
QUESTION 4
1. As a factor of production, oil reserves are counted as
Ā | Ā |
labor. |
Ā | Ā |
capital. |
Ā | Ā |
entrepreneurship. |
Ā | Ā |
land. |
QUESTION 5
1. ________ the owners of the factors of production, while ________ what amounts of those factors to hire.
Ā | Ā |
Households are; the government determines |
Ā | Ā |
Firms are; households that determine |
Ā | Ā |
The government is; firms determine |
Ā | Ā |
Households are; firms that determine |
QUESTION 6
1. The emerging market economies are
Ā | Ā |
the nations that are currently agricultural in nature. |
Ā | Ā |
most of the nations of Western Europe. |
Ā | Ā |
the largest grouping including the nations of China and India. |
Ā | Ā |
in the transition from state-owned production to free markets. |
QUESTION 7
1. In the United States, the productive factor that, as a group, receives the largest fraction of the nation's total income was
Ā | Ā |
consumption of goods and services. |
Ā | Ā |
entrepreneurship. |
Ā | Ā |
capital. |
Ā | Ā |
labor. |
QUESTION 8
1. Items bought by individuals to provide personal enjoyment are termed
Ā | Ā |
personal goods. |
Ā | Ā |
consumption of goods. |
Ā | Ā |
consumption or investment goods. |
Ā | Ā |
standard goods. |
QUESTION 9
1. In the advanced economies, ________ of the factories use advanced capital equipment and in the developing economies ________ of the factories use advanced capital equipment
Ā | Ā |
virtually all; none |
Ā | Ā |
some; some |
Ā | Ā |
virtually all; virtually all |
Ā | Ā |
virtually all; some |
QUESTION 10
1. The productive resource that includes all the "gifts of nature" is called
Ā | Ā |
land. |
Ā | Ā |
labor. |
Ā | Ā |
entrepreneurship. |
Ā | Ā |
capital. |
QUESTION 11
1. What would be an example of government good?
Ā | Ā |
Donald Trump purchases furniture for his office. |
Ā | Ā |
Antonio, the manager of the local Taco Hut, purchases a new deep fryer. |
Ā | Ā |
The local driver's license office purchases a new digital camera and printer. |
Ā | Ā |
Jake buys an iPhone. |
QUESTION 12
1. The world population is approximately ________ people.
Ā | Ā |
2 trillion |
Ā | Ā |
680 million |
Ā | Ā |
6.8 billion |
Ā | Ā |
6.8 million |
QUESTION 13
1. Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as
Ā | Ā |
U.S. exports of goods and services. |
Ā | Ā |
U.S. government goods and services. |
Ā | Ā |
foreign capital goods. |
Ā | Ā |
U.S. consumer goods and services. |
QUESTION 14
1. Of the following, the federal government obtains most revenue from
Ā | Ā |
corporate income taxes. |
Ā | Ā |
excise taxes. |
Ā | Ā |
sales taxes. |
Ā | Ā |
social security taxes. |
QUESTION 15
1. Items bought by businesses to help produce other goods and services are called
Ā | Ā |
capital goods. |
Ā | Ā |
government goods and services. |
Ā | Ā |
consumption of goods and services. |
Ā | Ā |
exports of goods and services. |
QUESTION 16
1. The majority of the income earned in the United States is paid in
Ā | Ā |
profit. |
Ā | Ā |
interest. |
Ā | Ā |
rent. |
Ā | Ā |
wages. |
QUESTION 17
1. Dan missed class the day the professor covered the circular flow model. Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market
Ā | Ā |
must include a written contract between buyers and sellers. |
Ā | Ā |
requires a physical location for buyers and sellers to get together. |
Ā | Ā |
is only a place to purchase groceries. |
Ā | Ā |
is an arrangement that brings buyers and sellers together. |
QUESTION 18
1. The United States possesses a large amount of human capital. As a result of this fact, in the United States, there is a
Ā | Ā |
highly skilled and educated labor force. |
Ā | Ā |
a large number of kind and generous humans. |
Ā | Ā |
a large number of people and a great deal of land. |
Ā | Ā |
a large amount of machinery and equipment. |
QUESTION 19
1. Which of the following correctly lists the categories of factors of production?
Ā | Ā |
labor, machines, buildings, capital, and entrepreneurship |
Ā | Ā |
land, buildings, capital, and entrepreneurship |
Ā | Ā |
land, labor, capital, and entrepreneurship |
Ā | Ā |
forests, fish, buildings, capital, and entrepreneurship |
QUESTION 20
1. Which of the following correctly lists the categories of factors of production?
Ā | Ā |
capital, money, and labor |
Ā | Ā |
hardware, software, land, and money |
Ā | Ā |
land, labor, capital, and entrepreneurship |
Ā | Ā |
machines, buildings, land, and money |
QUESTION 21
1. In the United States, the poorest 20 percent of households receive roughly ________ percent of total income.
Ā | Ā |
10 |
Ā | Ā |
3 |
Ā | Ā |
15 |
Ā | Ā |
20 |
QUESTION 22
1. What would be an example of a consumption service?
Ā | Ā |
Jake buys an iPhone. |
Ā | Ā |
The local driver's license office purchases a new digital camera and printer. |
Ā | Ā |
Antonio, the manager of the local Taco Hut, purchases a new deep fryer. |
Ā | Ā |
Rhianna gets a haircut. |
QUESTION 23
1. The total value of capital in the United States is around
Ā | Ā |
$47 trillion. |
Ā | Ā |
$10 trillion. |
Ā | Ā |
$100 trillion. |
Ā | Ā |
$79 trillion. |
QUESTION 24
1. An export good is a good produced
Ā | Ā |
by foreigners in the United States and purchased by U.S. households. |
Ā | Ā |
in another country and purchased by U.S. residents. |
Ā | Ā |
in the United States and sold to foreigners living in the United States. |
Ā | Ā |
in the United States and sold in other countries. |
QUESTION 25
1. ________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital.
Ā | Ā |
Interest is; wages are; profit is |
Ā | Ā |
Rent is; wages are; interest is |
Ā | Ā |
Rent is; interest is; wages are |
Ā | Ā |
Mortgages are; interest is; wages are |
21. The English word that comes from the Greek word for "one who manages a household" is
A- market
B- consumer
C- producer
D- economy
B- should be counted only to the extent that they are more expensive at college than elsewhere. C- usually exceed the opportunity cost of going to college. D- plus the cost of tuition, equals the opportunity cost of going to college. |
B- in most economies, wealthy people consume disproportionate quantities of goods and services. C- governments restrict the production of too many goods and services. D- resources are limited. |
B- markets guiding economic activity. Today many countries that did not have this system have implemented it. C- government guiding economic activity. Today many countries that had this system have abandoned it. D- government guiding economic activity. Today many countries that did not have this system have implemented it. |
B- we should agree with Senator Johnson. C- a good decision requires that we recognize both viewpoints. D- there are no tradeoffs between equity and efficiency. |
B- it does not matter if they charge $10 or $15. C- they would do better charging $15 than $10. D- they should raise the price even more. |
B- helps to explain how the economy is organized. C- incorporates all aspects of the real economy. D- Both (a) and (b) are correct. |
B- households provide firms with labor, land, and capital. C- firms provide households with output. D- firms provide households with profit. |
B- grew rapidly, due to several increases in the minimum wage during those decades. C- grew rapidly, due to government policies that discouraged the importation of foreign products during those decades. D- grew slowly, due to the slow growth of the output of goods and services per hour of U.S. workers' time during those decades. |
Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
B- true statements and false statements.
C- specific statements and general statements.
D- positive statements and normative statements.