ex1 sp09 ans tues - 1 For economists the word"utility means...


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1 1. For economists, the word "utility" means: A) versatility and flexibility. C) pleasure and satisfaction. B) rationality. D) purposefulness. 2. When economists say that people act rationally in their self interest, they mean that individuals: A) look for and pursue opportunities to increase their utility. C) are mainly creatures of habit. B) generally disregard the interests of others. D) are unpredictable. 3. The study of economics is primarily concerned with: A) keeping private businesses from losing money. C) choices that are made in seeking the best use of resources. B) demonstrating that capitalistic economies are superior to socialistic economies. D) determining the most equitable distribution of society's output. 4. Which of the following is an economic explanation for why most college-aged movie stars do not attend college. A) they are too dumb to get into college C) the opportunity cost in terms of reduced income is too great B) they would find college life boring D) they cannot afford the room, board, and tuition fees most colleges charge 5. Which of the following is a normative statement? A) The temperature is high today. C) It is too hot to play tennis today. B) The humidity is high today. D) It will cool off later this evening. 6. Which of the following is a capital resource? A) a computer programmer C) silicon (sand) used to make computer chips B) a corporate bond issued by a computer manufacturer D) a piece of software used by a firm 7. Which of the following will not produce an outward shift of the production possibilities curve? A) an upgrading of the quality of a nation's human resources C) an increase in the quantity of a society's labor force B) the reduction of unemployment D) the improvement of a society's technologica knowledge
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2 8. Refer to the above diagram. Starting at point A , the opportunity cost of producing each successive unit of tractors is: A) a constant 2 units of bread. C) 8, 6, 4, and 2 units of bread. B) 2, 4, 6, and 8 units of bread. D) the reciprocal of the output of tractors. 9. The production possibilities curve tells us: A) the specific combination of two products that is most desired by society. C)
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This note was uploaded on 05/03/2010 for the course BUSINESS econ203 taught by Professor Shivaggo during the Spring '10 term at Columbia College.

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