ECON 312 Week 4 Midterm (Version 1)
1. (TCO 1) As a consequence of the condition of scarcity
2. (TCO 1) The opportunity cost of constructing a new public highway is the
3. (TCO 1) A nation can increase its production possibilities by
4. (TCO 1) Which expression is another way of saying "marginal benefit"?
5. (TCO 1) The individual who brings together economic resources and assumes the risk of business ventures in a capitalist economy is called the
6. (TCO 1) The Soviet Union economy of the 1980s would best be classified as
7. (TCO 1) The simple circular-flow model shows that workers, entrepreneurs, and the owners of land and capital offer their services through
8. (TCO 1) Consumers express self-interest when they
9. (TCO 1) Which is not one of the five fundamental questions that an economy must deal with?
10. (TCO 1) The major "success indicator" for business managers in command economies like the Soviet Union and China in the past was
11. (TCO 2) An increase in demand means that
12. (TCO 2) At the point where the demand and supply curves intersect
13. (TCO 2) Black markets are associated with
14. (TCO 2) An increase in demand for oil along with a simultaneous increase in supply of oil will
15. (TCO 2) If Product Y is an inferior good, a decrease in consumer incomes will
16. (TCO 2) If the price elasticity of demand for a product is equal to 0.5, then a 10 percent decrease in price will increase quantity demanded by
17. (TCO 2) Total revenue falls as the price of a good is raised, if the demand for the good is
18. (TCO 2) You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues, you should:
19. (TCO 2) A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective...