Final Exam Review

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The Final Examination has 40 multiple-choice questions. The questions on the final are taken from the textbook and the online materials. The following review is comprehensive. That means that if you see it here, you'll see it on the test. If you don't see it here, you're not responsible for it. Good luck on the final. Let me know if you have questions.

Which of the following best illustrates the application of the scientific method to economics?
The fallacy _____ is the incorrect idea that if two variables are associated in time, one must necessarily cause the other.
In terms of opportunity cost, _____ is the ultimate constraint.
Which of the following is the best description of the production possibilities frontier (PPF)?
Which of the following best describes the economic concept of demand?
A market equilibrium occurs when price is such that _____.
Which of the following represents the most valuable resource sold by most households?
Which of the following correctly explains why some household production of goods and services still occurs?
Which of the following most completely describes the concept of price elasticity of demand?
Elasticity is another word for _____.
Economists assume that tastes are given and are _____.
Which of the following best describes the economic concept of utility?
_____ costs represent a firm’s opportunity cost of using its own resources or those provided by its owners _____ a corresponding cash payment.
Which of the following best describes the law of diminishing marginal returns?
Market structure includes which of the following features of a market?
A _____ is a firm that faces a given market price and whose actions have no effect on that market price.
How does a patent operate as a barrier to entry?
_____ exist when the average cost of production by one firm becomes smaller as the rate of output increases.
The market structure of monopolistic competition features _____ firm(s) selling products that are _____. Firms face a _____ demand curve.
Which of the following describes product differentiation based on location?
Why does a firm employ resources?
Which of the following constitutes the largest share of national income in the U.S.?
What are the three uses of time?
The _____, the utility of the consumption made possible through work minus the disutility of the work itself, usually makes some amount of work an attractive use of your time.
Why does production of goods and services require saving?
Which of the following correctly defines the interest rate?
_____ is the expansion of a firm into stages of production earlier or later than those in which it has specialized, such as a steel producer that buys a coal mine.
_____ refers to limits to the amount of information that an economic agent, such as a manager, can comprehend. Thus the size of a firm may be limited by difficulties in coordinating additional functions, and communicating across functions.
The ability of one or more firms to maintain a price above the competitive level is termed _____.
So far in this exam we have assumed that economic regulation is designed in the public interest. Which of the following correctly describes the special interest theory of regulation?
In contrast to private goods, public goods such as public radio are such that one person’s consumption _____ diminish the amount available to others, and those who supply the public good _____ exclude those who do not pay.
The efficient quantity of a public good to produce is found where the marginal cost of producing an additional unit of the public good equals its marginal benefit. This occurs where the marginal cost curve intersects the _____ curve.
An open-access good is often times subject to which of the following problems?
Which of the following offers a way to resolve the common-pool problem?
Which of the following most closely defines the concept of poverty?
How does the federal government determine the level of income that constitutes the poverty line for a family of a particular size?
Comparative advantage is the ability of a country to produce a good at a _____ opportunity cost relative to other countries.
Who most clearly gains from a tariff on imports?
When a country runs a deficit in its current account, the amount of foreign exchange (foreign currency) that the country gets from exporting goods and services and from receipts of unilateral transfers falls short of the amount needed to pay for its imports and to make unilateral transfers. Where does the additional foreign exchange come from?
The official _____ indicate(s) the net amount of international reserves that shift among central banks to settle international transactions.