A market
Select one:
a. makes possible the exchange of goods and services between buyers and sellers.
b. consists only of a specialized place or service where goods and services are exchanged.
c. consists only of a formally organized place where a well-defined commodity is traded.
d. consists only of a localized place or service that facilitates the exchange of goods and services.
e. consists of both large and small places where poorly defined commodities are traded
If there is a market where consumers may purchase any quantity of a product, at the single prevailing price, the price elasticity of demand for such a product would be
Select one:
a. nonexistent.
b. infinite.
c. zero.
d. negative 1.
e. a constant positive 1.
Alan and Brian work at a baseball and softball manufacturing plant. Alan can produce either 10 baseballs or 4 softballs in an hour. Brian can produce either 8 baseballs or 2 softballs in an hour.
According to Scenario 2-1, the opportunity cost for Alan to produce 1 baseball is
Select one:
a. 1/4 softball.
b. 2/5 softball.
c. less than the opportunity cost for Brian to produce 1 baseball.
d. 2 1/2 softballs.
e. 4 softballs.
Transfer earnings are equal to
Select one:
a. what a resource is earning in its current use.
b. what a resource could earn in its next-best use.
c. economic earnings when the resource supply curve is vertical.
d. economic earnings.
e. what a resource earns in excess of what it must earn to keep it in its current use.
The amount by which firms will alter their use of a resource when the price of that resource changes
Select one:
a. cannot be determined.
b. is too complex to be measured with confidence.
c. does not apply to the resource market.
d. is set through legislation within each individual state.
e. is measured by the price elasticity of resource demand.
Which of the following is a shortcoming of the unemployment rate as a true measure of unemployment?
Select one:
a. The existence of unemployed workers
b. The exclusion of institutionalized adults
c. The exclusion of workers who are out of work and voluntarily idle
d. The inclusion of those who cannot find work but continue to search
e. The exclusion of those who gave up looking for work
What is the hawala network?
Select one:
a. An informal network where people can send money to recipients in Muslim nations
b. A congregation of Muslim financial specialists
c. The union of all Muslim central banks
d. The informal network of Latin American Savings and Loans
e. A means for students to finance their college education
Which of the following best defines neuroeconomics?
Select one:
a. A joint study by economists and psychologists that attempts to determine how the brain handles economic decisions.
b. A joint study by economists and sociologists that attempts to determine how the brain handles economic decisions.
c. A joint study by economists and biologists that attempts to determine how the brain handles economic decisions.
d. A joint study by biologists and psychologists that attempts to determine how the brain handles economic decisions.
e. A joint study by economists and political scientists that attempts to determine how the brain handles economic decisions.
Resources that were once used in a failing business will, according to the text,
Select one:
a. be used in activities that are identical to the failed business.
b. be used where they have less value and thus less cost.
c. be used in activities where they are more highly valued.
d. be liquidated and not used again.
e. be written off to taxes.