University:
Western Governors University
Course:
C211 | Global Economics
Academic year:

2021
Views:

151

Pages:

2
Author:

Oerallerxhcq

QUESTIONS & ANSWER 1. For economists, the word “utility” means: a. Pleasure and satisfaction 2. Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any money on my financial investment." His economist friend points out that in effect he did lose money, because he could have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of what? a. Opportunity costs 3. Which one of the following expressions best states the idea of opportunity cost? a. “there is no such thing as free lunch.” 4. An economic hypothesis a. Is a possible explanation of cause and effect 5. The basic purpose of the other-things-equal assumption is to: a. Allow one reason about the relationship between variable x and y without the intrusion of the variable z. 6. Refer to the budget line in the diagram. If the consumer’s money income is $20, which of the following combinations of goods is unattainable a. 4 units of c, and 6 units of d 7. Refer to the graphs. Assume that pizza is measured in slices and beer in pints. In the opportunity cost of a pint of beer the lowest a. Graph B 8. Answer the next question on the basis of the data given in the following production possibilities table. Referring to the table, if the economy is producing at production alternative c, the opportunity cost of the tenth unit of consumer goods will be: a. 1/3 of a unit of capital goods 9. Refer to the diagram. Points A,B,C,D AND E show: a. Combinations of bicycles and computers that society can produce by using to resources efficiently. 10. If we say that two variables are inversely related, this means that: a. An increase in one variable is associated with a decrease in the other 11. Refer to the diagram. The slope of the line: a. Is + ¼ 12. Refer to the diagram. The equation that shows the relationship between y and x is: a. Y= 50 + ¼ x 13. Refer to the graph. Which of the following schedules correctly reflects “supply” 14. Answer the question on the basis of the following five data sets wherein it is assumed that the variable shown on the left is the independent variable and the one on the right is the dependent variable. Assume in graphing these data that the independent variable is shown on the horizontal axis and the dependent variable on the vertical axis a. In data sets 1, 2, and 5 only 15. The slope of a line parallel to the horizontal axis is: a. zero