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ECO 365T Wk 1 – Apply: Fundamentals of Economics Homework
Review the Week 1 The Fundamentals of Economics Quiz in preparation for this assignment.
Complete the Week 1 The Fundamentals of Economics Homework in McGraw-Hill Connect®. These are randomized questions.
Note: You have only one attempt available to complete assignments. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after the due date.
The opportunity cost of an action is always equal to:
the things you could have done instead of the action you chose to undertake.
the time you give up to undertake the action.
the money you give up to undertake the action.
the next-best alternative for the resources used to undertake the action.
Bob, the owner of a local deli in town, needs to purchase something that economists would label as “capital” to help him produce sandwiches. Which of the following is an example of capital?
A meat slicer to cut ham for sandwiches
An additional worker
Ham for the sandwiches
A new idea that automates the making of sandwiches
Which of the following is a labor resource?
Multiple Choice
a computer programmer
a computer
a piece of software used by a firm
silicon (sand) used to make computer chips
Marginal cost can be defined as the change in
Multiple Choice
cost resulting from one less unit of production.
benefit resulting from one more unit of production.
cost resulting from one more unit of production.
benefit resulting from one less unit of production.
The two basic markets shown by the simple circular flow model are
Multiple Choice
product and resource.
capital goods and consumer goods.
household and business.
free and controlled.
Macroeconomics approaches the study of economics from the viewpoint of
Multiple Choice
the operation of specific product and resource markets.
the entire economy.
governmental units.
individual firms.
The basic truth that underlies the study of economics is the fact that we all face
Multiple Choice
risk.
scarcity.
taxes.
death.
In the circular flow model of the market system, households
Multiple Choice
buy products and resources.
sell products and resources.
sell products and buy resources.
buy products and sell resources.
Use the following market data to answer the question below.
| Price per Unit | Quantity Purchased by Consumer | Quantity Sold by Producer |
| $5 | 2,000 | 0 |
| 10 | 1,800 | 300 |
| 15 | 1,600 | 600 |
| 20 | 1,400 | 900 |
| 25 | 1,200 | 1,200 |
| 30 | 1,000 | 1,500 |
In the market shown in the table, the equilibrium quantity is
Multiple Choice
1,600.
900.
1,200.
1,400.
Microeconomics is concerned with
Multiple Choice
the aggregate or total levels of income, employment, and output.
how government debt affects aggregate economic activity.
the establishing of an overall view of the operation of the aggregate economic system.
a detailed examination of specific economic units that make up the economic system.
Marcus budgets $120 a week for groceries. When the price of all food goes up by 10% he buys less salmon. This can best be explained by:
diminishing marginal utility.
the substitution effect.
a change in income.
the income effect.
Which of the following scenarios is an example of a person interacting outside of a market?
Mark places his comic book collection up for sale on eBay.
Young buys fresh radishes at the local farmers’ market.
Melissa votes for her favorite performer at a local talent show.
Isabella agrees to fix Miguel’s sink if Miguel paints Isabella’s porch.
The table below represents the demand for bottles of sunscreen at Daytona Beach on a sunny June day.
Demand for Sunscreen
| Price (dollars) | Quantity of Sunscreen Demanded (bottles) |
| $4 | 7,200 |
| 6 | 6,800 |
| 8 | 6,400 |
| 10 | 6,000 |
| 12 | 5,600 |
If the price of a bottle of sunscreen is $8, what will be the quantity demanded?
1,600 bottles
6,400 bottles
6,000 bottles
8,000 bottles
Markets can:
make buyers and sellers better off.
force buyers to buy things they do not want to buy.
force producers to make things they do not want to make.
provide unlimited goods and services.
If product Y is an inferior good, a decrease in consumer incomes will
Multiple Choice
make buyers want to buy less of product Y.
shift the demand curve for product Y to the right.
shift the demand curve for product Y to the left.
not affect the sales of product Y.
An increase in the demand for music downloads indicates that more music downloads are
Multiple Choice
demanded because music download prices have decreased.
demanded even if prices of music downloads stay the same.
demanded because sellers are selling more music downloads.
demanded because sellers are putting music downloads on sale.
When economists speak of “demand” in a particular market, they refer to
Multiple Choice
how much of an item buyers want to buy at a given price.
one point on the demand curve.
the whole demand curve or schedule.
one price-quantity combination on the demand schedule.
The demand schedule for a product shows the relationship between how much of the product buyers are willing and able to buy and the
Multiple Choice
product’s price.
buyers’ incomes.
time period, say, from one month to the next.
cost of producing the product.
All else held constant, the law of demand suggests that as
Multiple Choice
the price of tablets decreases, the quantity of tablets demanded will increase.
the demand for tablets increases, the price of tablets will increase.
the price of tablets decreases, the quantity of tablets demanded will decrease.
income increases, the quantity of tablets demanded will increase.
When economists say that the demand for a product has decreased, they mean that
Multiple Choice
the demand curve has shifted to the right.
consumers are now willing and able to buy less of this product at each possible price.
the product has become particularly scarce for some reason.
the product has become more expensive and thus consumers are buying less of it.
Which of the following scenarios would likely shift the supply curve for potatoes to the right (increase in supply)?
Potato growers expect the price of potatoes to be lower this year than last year.
The price of fertilizer increases.
Teenagers in potato-farming towns leave to go to college.
A new harvester enables farmers to bring in ripe potatoes twice as fast as they did before.
Which of the following scenarios would likely shift the supply of cars to the left (decrease in supply)?
The price of automotive paint decreases.
Automobile workers become more productive.
The price of steel and aluminum increase.
The price of cars decreases.
Use the figure below to answer the following question.
The diagram shows three supply curves for apples today. Which of the following would cause the current supply of apples to shift from S1 to S3?
Multiple Choice
expectations of lower apple prices in the future
a decrease in the price of apples in the market
an increase in the number of corn farmers
expectations of higher apple prices in the future
Which of the following statements is true about supply?
Multiple Choice
As price decreases, producers are willing and able to put more of the good on the market for sale.
As price increases, producers are willing and able to put more of the good on the market for sale.
Supply refers to the amount of inventory that sellers have in their warehouses.
There is an inverse relationship between price and quantity supplied.
Use the figure below to answer the following question.
The diagram above shows three supply curves for apples. A movement from point a to point b is caused by a change in the
Multiple Choice
price of resources used to produce apples.
number of apple farmers.
technology of apple farming.
price of apples in the market.
In understanding and analyzing “market supply,” we focus on how much all firms
Multiple Choice
have sold in the recent past at various prices.
are willing and able to supply at different prices.
want to supply at a given price.
will supply in the future at various prices.
When economists say that the supply for a product has decreased, they mean that the
Multiple Choice
supply curve has shifted to the right.
product has become more expensive and thus consumers are buying less of it.
supply curve has shifted to the left.
product has become particularly abundant for some reason.