ECON 213 Quiz 1 Complete Solution

Question: #9213

Liberty University ECON 213 quiz 5 complete solutions

Question 1: Which of the following is most clearly consistent with the basic postulate of economics regarding the reaction of people to a change in incentives

Question 2: Criteria for rationing goods and resources must be established because of

Question 3: What is the best test of an economic theory?

Question 4: Economics is primarily the study of

Question 5: Which of the following is often referred to as the basic postulate of economics

Question 6: When an individual weighs her options and makes a choice that maximizes her benefit at the minimum cost, economists refer to this as a process of

Question 7: “If income were redistributed in favor of the poor, we would eliminate scarcity.” The preceding statement is

Question 8: “ As soon as I announced my ‘get tough on crime’ policy, criminals got scared and the crime rate went down” Supposed that the lower crime rate was actually caused by freezing cold temperatures in January—it was just too cold for anybody to be out robbing other people. Which fundamental economic mistake did the politician make?

Question 9: Which of the following is true?

Question 10: What is the best test of an economic theory?

Question 11: In economics, the term marginal refers to

Question 12: Which of the following represents a normative statement?

Question 13: A tradeoff exists between a clean environment and a higher level of income in that

Question 14: Susan wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $1.50 per gallon, the car was costs $1, but if she buys 10 gallons of gasoline, the car wash is free. For Susan, the marginal cost of the tenth gallon of gasoline is

Question 15: Scarcity implies that

Question 16: The economizing problem is essentially one of deciding how to make the best use of

Question 17: Which of the following is a positive economic statement?

Question 18: People are more likely to purchase a consumer ratings magazine that reviews new automobiles before buying a new car than they are to purchase a consumer ratings magazine that reviews pens and pencils before buying a new pen or pencil. Which of the following best explains this behavior?

Question 19: The expression “There’s no such thing as a free lunch,” implies that

Question 20: “Mediocre economists often consider only immediate apparent effects of a change, whereas a good economist will also consider effects that may only become observable over time.” This statement most clearly emphasizes

Solution: #9250

ECON-213 -Quiz-exams-1- complete solutions

Question 1: Which of the following is most clearly consistent with the basic postulate of economics regarding the reaction of people to a change in incentives Question 2: Criteria for rationing goods and resources must be established because of Question 3: What is the best test of an economic...