ECO100 Knowledge Check 1 latest 2018-Strayer University

ECO100 Knowledge Check 1 latest 2018-Strayer University

        Question 1

In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire workers?

wage levels

the macroeconomy

the firm's income

household income

·         Question 2

Which of the following are not typically considered macroeconomic topics?

the profit-maximizing decisions of an individual manufacturer.

the rate of inflation.

the rate of unemployment.

economic growth.

·         Question 3

Which of the following is most likely a topic of discussion in macroeconomics?

an increase in the price of a hamburger

a decrease in the production of DVD players by a consumer electronics company

an increase in the wage rate paid to automobile workers

a decrease in the unemployment rate

·         Question 4

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

all consumers.

buyers and sellers.

producers and input suppliers.

producers and government planning committees.

·         Question 5

Which of the following statements most likely lies within the realm of macroeconomics?

An increase in the price of automobiles will lead to a decrease in the quantity of automobiles demanded.

Due to process innovations in computer chip manufacturing, the market supply of computers increased.

Due to an economic recession, manufacturing firms began implementing layoffs of their workforces.

Anticipating that the benefits would outweigh costs involved, an undergraduate student purchases the course textbook.

·         Question 6

Scarcity implies that:

consumers would be willing to purchase the same quantity of a good at a higher price.

it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available.

at the current market price, consumers are willing to purchase more of a good than suppliers are willing to produce.

consumers cannot afford the goods and services available.

·         Question 7

As a person receives more of a good, the _______________ from each additional unit of the good declines.

Answers:

utility

sunk cost

marginal utility

budget constraint

·         Question 8

Forgetting about the money that's irretrievably gone and instead focusing on the marginal costs and benefits of future options, is the lesson of which of the following?

marginal utility

sunk costs

marginal analysis

budget constraints

·         Question 9

The law of ____________________________ explains why people and societies rarely make all-or-nothing choices.

consumption

marginal analysis

diminishing marginal utility

utility

·         Question 10

Attending college is a case where the ________________ exceeds the monetary cost.

budget constraint

marginal analysis

opportunity cost

marginal utility