It's an online assignment and there are 20 questions.
I will pay 70-100fg total. Minimum correct must be 14 otherwise there will be no payment.
Example:
14/20 = 70fg
16/20 = 80fg
18/20 = 90fg
20/20 = 100fg
Pm me and I will submit your answers.
Use (a,b,c,d,e) for answers
Question 1 5 pts
According to our text, why is it so important that a government providing essential functions and sound economic rules exist in a capitalist economy?
Because it is the government's role to redistribute incomes from the wealthy to the poor.
Because the government needs to set prices and wages. The free market, because of externalities, is unable to do so.
Because a government needs to enforce contracts, provide essential public goods and protect private properties.
Because whereas the corporations and the stock markets are run by private individuals, all other economic decisions, including wage and price setting of all services, extensive consumer and labor laws and banking pricing (including interest rates) and regulations, must be made by the government.
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Question 2 5 pts
Let's consider the housing market. Which of the following contributes to an increase in the price of houses?
Interest rates increase, thus raising the cost of borrowing (mortgages become more expensive).
Banks and government insurers of mortgages become stricter in extending loans (more money down, higher income requirements, etc.).
It is more difficult for banks to sell their mortgages to other investors.
Housing prices are expected to rise in the future.
All of the listed answers are correct.
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Question 3 5 pts
Which of the following is a characteristic of a country with a relatively high per capita (per person) earnings?
Strong private property rights.
Strong government ownership of major industries.
High taxes and strong regulations.
Strong protection of international borders, including high tariffs to discourage imports.
All of the listed answers are characteristics of high-earning countries.
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Question 4 5 pts
An economist concludes that a state's unemployment rate decreased significantly 6 months after its minimum wage was increased by $2. He may be subject to the:
The fallacy of composition.
fallacy of demand and supply.
The cause and effect fallacy.
The wage-price spiral fallacy.
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Question 5 5 pts
Which of the following is an activity typical in a pure capitalist (laissez-faire) economy?
The government provides bailouts to large corporations.
Private charities provide help to the poor on a voluntary basis.
The government taxes the wealthy and redistributes this revenue to the poor and the unemployed.
The government spends money from a stimulus package during recessionary times.
All of the listed answers are typical activities in a capitalist economy.
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Question 6 5 pts
Consider the following statements. Statement I: If our government adopts a universal health care system, the number of uninsured citizens will decline. Statement II: When our government increases spending, then our government deficit will rise. Please select the best answer:
Statement I is a normative economic statement.
Statement II is a normative economic statement.
Both statements (I and II) are normative economic statements.
Both statements (I and II) are positive economic statements.
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Question 7 5 pts
Which of the following does not cause an outward shift of the production possibilities curve (does not cause economic growth)?
An increase in resources.
An advance in technology.
An expanded role for the government in the form of enhanced income distribution programs.
Training and education which lead to a more efficient work force.
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Question 8 5 pts
Which of the following is typical activity in a socialist (mixed economy) system?
The government provides bailouts to large corporations.
The government regulates and controls important industries, such as utilities and transportation industries.
The government taxes the wealthy and redistributes this revenue to the poor and the unemployed.
The government spends money from a stimulus package during recessionary times.
All of the listed answers are typical activities in a socialist economy.
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Question 9 5 pts
What happens to the equilibrium price and quantity of cars that are not very fuel efficient (they use a lot of gasoline), when the following changes happen simultaneously: a. the government puts a tax on the production of these fuel inefficient cars. b. the technology to make hybrid cars, a substitute product, improves, thus lowering the cost of producing and the price of these cars.
The equilibrium price increases, and the equilibrium quantity change is indeterminate.
The equilibrium price decreases, and the equilibrium quantity change is indeterminate.
The equilibrium price change is indeterminate, and the equilibrium quantity increases.
The equilibrium price increases, and the equilibrium quantity decreases.
The equilibrium price is indeterminate, and the equilibrium quantity decreases.
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Question 10 5 pts
Critical thinking includes the ability to think like an economist. Which of the following statements best reflects the thinking of a person who thinks like an economist?
The Social Security program has been successful because it has helped many elderly people avoid poverty.
The government bailouts have been successful, because they have prevented many bankruptcies and allowed many people to continue working.
The government bailouts have saved a number of jobs, but they have been costly. The resulting government debt may cause problems in the future and may cost more jobs in the long that were saved in the short run.
All of the listed answers are correct.
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Question 11 5 pts
An important part of knowing how to think like an economist is to:
Always choose the short run over the long run.
Always choose the long run over the short run.
Always look at the entire picture; consider the effects of an economic action on all groups involved.
None of the listed answers is correct.
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Question 12 5 pts
Let’s suppose that in a certain region the free market (equilibrium) wage for unskilled or inexperienced labor is $4.00. When the government in this region increases the minimum wage from $5.15 to $6.15, then, according to the theory of supply and demand:
Businesses will have to increase their wages and cost of production will increase and/or their demand for workers will decrease.
Business costs will decrease and firms will increase their demand for labor and increase their supply of goods.
The increase in the minimum wage will increase the demand for labor and cause an decrease in the unemployment rate.
Since the free market wage is below the minimum wage, the increase in the minimum wage has little or no effect on employment and supply and demand.
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Question 13 5 pts
Let's say that we notice that the equilibrium (market) price of a product decreases significantly. And let's say that we also notice that the equilibrium (market) quantity doesn't change much at all. In Unit 2, we learned that one of the following must have caused these changes: (Hint: graph the changes in all the answers below and notice what happens to equilibrium price and quantity)
Demand and supply must have increased.
Demand and supply must have decreased.
Demand must have decreased and supply must have increased.
Demand must have increased and supply must have decreased.
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Question 14 5 pts
When the price of a product decreases, buyers will have more income available to buy more of the product (and vice versa). This describes:
the substitution effect.
the income effect.
the demand effect.
the competition effect.
the supply effect.
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Question 15 5 pts
The long run price of a product or service, which is produced by at least several competing manufacturers:
Is usually much greater than the cost of production.
Is usually close to the cost of production.
Has no relation to the product or service's cost of production.
Always goes up in the long run
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Question 16 5 pts
When the price of apples decreases, people buy more apples (ceteris paribus). This increases __________. When the price of oranges (a substitute good) goes up, people also buy more apples (ceteris paribus). This increases __________.
quantity demanded; demand
demand; quantity demanded
consumer surplus; producer surplus
the demand for applesauce; the demand for orange juice
the purchasing power effect; the income effect
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Question 17 5 pts
An economy experiences the free rider problem when a government offers a service at no cost to the public (other than the taxes people pay). For example, if education is offered at zero tuition and with access to everyone, we experience a free rider problem. The free rider problem often leads to:
over-consumption, because when the service is free then the marginal benefit to most consumers exceeds the marginal cost.
under-consumption, because when the service is free then the marginal benefit to most consumers exceeds the marginal cost.
over-consumption, because when the service is free then the marginal cost to most consumers exceeds the marginal benefit.
under-consumption, because when the service is free then the marginal cost to most consumers exceeds the marginal benefit.
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Question 18 5 pts
Let's say that demand increases (the demand curve shifts to the right) and supply increases (the supply curve shifts to the right). What can we conclude about consumer surplus?
Consumer surplus will increase.
Consumer surplus will decrease.
Consumer surplus may increase or decrease depending on the slope of the demand curve.
Consumer surplus may increase or decrease depending on the slope of the supply curve.
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Question 19 5 pts
The following all contribute to an increase in the price of U.S. stocks, except:
U.S. stock prices are expected to rise in the future.
United States corporate profits are increasing.
The value of the dollar is rising, making it more attractive for foreign investors to purchase U.S. stocks.
Interest rates are rising, making it more attractive for foreign investors to purchase real estate in the United States.
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Question 20 5 pts
Let's say that supply increases (the supply curve shifts to the right) and demand stays the same (the demand curve does not shift). What can we conclude about consumer surplus?
Consumer surplus will increase.
Consumer surplus will decrease.
Consumer surplus may increase or decrease depending on the slope of the demand curve.
Consumer surplus may increase or decrease depending on the slope of the supply curve..
This post was edited by Panguin on Sep 11 2016 07:10pm