1. Florida schools offered cash bonuses to students who scored high on the state's standardized exams. Cash bonuses are an example of this economic principle:
There are gains from trade.
The real cost of something is what you must give up to get it.
People usually take advantage of opportunities to make themselves better off.
Resources are scarce.
Score: 1 of1
2.
In Ventura County, California, strawberry production is limited by the number of acres available for agricultural production. This statement best represents this economic concept:
There are gains from trade.
"How much" is a decision at the margin.
Resources are scarce.
Resources should be used as efficiently as possible to achieve society's goals.
Score: 1 of1
3.
Market failure occurs when:
mutually beneficial trades take place.
a business declares bankruptcy.
individual actions have side effects that are not properly taken into account.
prices of essential goods such as gas become very high.
Score: 1 of1
4.
Reference: Ref 4-14
(Table: Producer Surplus) Look at the table Producer Surplus. If the price of a ticket to seeThe Nutty Nutcrackeris $50, then Francisco's producer surplus is:
$90.
$40.
$240.
$0.
Score: 1 of1
5.
If the price of chocolate-covered peanuts decreases from $1. 15 to $0. 90 and the quantity demanded increases from 0 bags to 400 bags, then the price elasticity of demand (by the midpoint method) is:
greater than 2.
2.
1.
0. 5.
Score: 0 of1
6.
Figure: Supply and Demand Reference: Ref 5-9 (Figure: Supply and Demand) Look at the figure Supply and Demand. A price ceiling ofP1causes:
no change to the market.
a shortage equal to the distanceDE.
a shortage equal to the distanceAB.
a surplus equal to the distanceAB.
Score: 0 of1
7.
Assume that as your income increases, your consumption of burgers increases. We can assume that you consider burgers a(n) _____ good.
normal
negative
positive
inferior
Score: 1 of1
8.
Economists tend to believe that to change people's behavior you must:
appeal to their religious values.
appeal to their concern for society.
change their incentives.
legislate the change.
Score: 1 of1
9.
An increase in the price of hamburgers would probably result in _____ in the demand for hamburger buns.
no change
an increase
random fluctuations
a decrease
Score: 0 of1
10.
Reference: Ref 2-10
(Table: Production Possibilities Schedule I) Look at the table Production Possibilities Schedule I. If the economy produces 4 units of consumer goods per period, it also can produce at most _____ units of capital goods per period.
18
10
28
30
Score: 1 of1
11.
When the price...
