Q&A Hero

Q: In a growing number of cities, stores are required either not to make available plastic or paper bags or to do so only for an additional fee. If this fee can be refunded when someone recycles the bag, the refund acts as a(n) ________ incentive.a. direct b. indirectc. neutrald. complementarye. unintended

Q: Google has started a project to scan all books and make those that are not copyrighted available to people free of charge. Why is it important that only books without a copyright are available?a. If all books were scanned and available free of charge, copyright holders would face a positive incentive to continue writing and publishing books.b. If all books were scanned and available free of charge, copyright holders would face a negative incentive to continue writing and publishing books.c. If only copyrighted texts were scanned and available free of charge, copyright holders would face an indirect incentive to continue writing and publishing books.d. If only non-copyrighted books were scanned and available free of charge, copyright holders would face a negative incentive to continue writing and publishing books.e. If only non-copyrighted books were scanned and available free of charge, copyright holders would face an indirect incentive to continue writing and publishing books.

Q: When a ticket is given to a pedestrian for jaywalking, what type of incentive exists?a. positive b. negative c. neutrald. complementarye. unintended

Q: The government places warnings on cigarette and liquor packages. These warnings serve as a(n) a. positive incentive. b. negative incentive. c. indirect incentive. d. opportunity cost. e. way to make cigarettes and liquor more scarce.

Q: A camera takes pictures of drivers who do not stop at a red light, and this practice is used to issue traffic tickets. These red light cameras can be understood as serving a(n) a. positive incentive to encourage individuals to stop at a red light. b. negative incentive to discourage individuals from driving through a red light. c. indirect incentive to encourage individuals to stop at a red light. d. direct incentive to encourage individuals to stop at a red light. e. negative incentive to encourage individuals to drive through a red light.

Q: Actions and activities are discouraged witha. positive incentives. b. negative incentives. c. direct incentives.d. indirect incentives.e. unintended consequences.

Q: Many professors have a policy that punishes individuals if they dont come to class. Instead of punishing students who dont attend class, what could the professor do to provide a positive incentive to come to class? a. Those who come to class are given extra points. b. Those who do not come to class have their grades reduced. c. Those who come to class will be asked questions, and if they answer them incorrectly, their grades will be lowered. d. Those who come to class will be ridiculed. e. Those who do not come to class might be dropped from the course.

Q: A car insurance company is willing to offer accident-free drivers a discount. This is an example ofa. a positive incentive. b. a negative incentive.c. an opportunity cost.d. a comparative advantage. e. scarcity.

Q: Economics professors are well aware of the importance of incentives. Which of the following situations shows the use of a positive incentive? a. Students who show up late to class will not be allowed in the classroom. b. Students who do not have a doctors note will not be allowed to take an exam at a different time. c. Students can choose whether they want to attend classthere is no attendance policy. d. Students can choose to get a higher grade by doing extra credit work. e. The professor decides to teach the class by reading out of the textbook to the entire class.

Q: A parent that pays a child an allowance for doing chores is providing a(n) ________ incentive.a. positive b. negative c. neutrald. complementarye. unintended

Q: Actions and activities are encouraged with which type of incentive?a. positive b. negative c. neutrald. complementarye. unintended

Q: An example of a direct positive incentive is a. a prison sentence for committing a crime. b. unemployment insurance for those who are laid off. c. providing a workplace safety program. d. providing a commission for sales. e. threatening to fire those who do not perform well.

Q: An example of a direct negative incentive is a. providing a commission for sales. b. awarding a promotion for hard work. c. threatening to fire those who do not perform well. d. providing an orientation for new employees. e. providing generous benefits and pay for employees.

Q: If the government wanted to give people a negative direct incentive not to save money, what would be the appropriate policy? a. providing individuals a subsidy to save their money b. providing funding for an advertising campaign encouraging people to spend more money c. informing individuals that saving money causes people not to spend money, which will cause them to lose their jobs d. imposing a tax on individuals for saving their money e. informing consumers about all that they could buy with their money with the hope that they spend more

Q: Public buildings in the United States are required to be accessible to the disabled and, as a result, almost all have an elevator. What would be an example of a positive direct incentive for those who can to use stairs? a. Using the stairs will make it seem that they care about their health and that they arent lazy. b. Using the stairs will increase the risk of tripping and falling. c. Using the stairs will take more time than taking the elevator and will increase the risk of missing an important meeting. d. Using the stairs will give them some exercise and make them healthier. e. Using the stairs will put elevator repair professionals out of work.

Q: Entrepreneurs are willing to take risks becausea. technology provides a way to sidestep the patent and copyright system.b. the patent and copyright system provides an exclusive right to sell the product for a period of time.c. the patent and copyright system guarantees a certain level of profit.d. technology always increases costs and prevents competitors from entering the market.e. the patent and copyright system guarantees that the risks taken will be rewarded.

Q: On which of the following concepts do economists focus their study when explaining how humans behave?a. fairness b. money c. emotionsd. incentivese. justice

Q: The patent system a. acts as a direct positive incentive. b. acts as a direct negative incentive. c. acts as an indirect positive incentive. d. acts as an indirect negative incentive. e. does not provide an incentive.

Q: Which of the following is NOT a type of incentive?a. positive b. negative c. complementaryd. indirecte. direct

Q: Which of the following is a microeconomic question? a. What are the total production levels in the economy? b. How can we best encourage economic growth? c. What is the overall price level in the economy? d. What are the variables that determine the price of a specific good? e. How can we reduce the unemployment rate among Hispanic men?

Q: Microeconomics is the branch of economics that focuses on the a. entire economy. b. production side of the economy. c. consumption side of the economy. d. involvement of the government in the entire economy. e. choices and decision making of individuals and firms.

Q: Microeconomics is the study of a. how government activities affect the economy. b. individual decision-making units. c. collective decision making. d. the operation of the economy as a whole. e. the interaction between the government and businesses.

Q: Which of the following is a macroeconomic question? a. How many textbooks should be published by a publisher? b. How much should English majors earn after college? c. How do members of a household decide whether to clean their own houses or hire someone else to do it? d. What is the rate of unemployment? e. What is the price of a new 40-inch television?

Q: Macroeconomics is the study of a. the economic motives of voters and elected officials. b. individual decision-making units such as households and businesses. c. how government purchases affect specific markets. d. the operation of the economy as a whole. e. the interaction between the government and businesses.

Q: What is the strongest argument for why we need more economists today than ever before? a. We have a need for more wealth given the higher standard of living that individuals demand. b. Economists are needed to address the allocation of scarce resources as a result of the worlds growing population. c. Economists are needed to make sure that firms continue to make profits. d. Economists are needed to make sure that consumers are well informed about their possible purchase options and that they budget their finances appropriately. e. Economists are needed to make sure that the government doesnt involve itself too much in the economy.

Q: Which scenario describes studying for an economics course without applying the scarcity principle? a. Mary studies two hours for every one hour she is in the classroom. b. Jonah studies three afternoons a week until he understands the material or until dinner, whichever comes first. c. Lucy studies with her roommate who is also taking the course, and they discuss economic concepts during any free time they can find. d. Chloe studies for this course and does nothing else. e. Rafael talks to an economist whenever he has a chance to do so.

Q: Which of the following statements best represents the fact that Logan cannot put in extra hours of work because of scarcity? a. He doesnt have enough time for additional work because he needs to spend time with his family and there are only so many hours in the day. b. He doesnt like going to work, so why would he work more than he has to? c. He doesnt think that overtime pay is high enough. d. He is worried that if he works extra hours, he will get bored with his job. e. He doesnt want his coworkers to feel pressure to work more because he is working additional hours.

Q: Because of scarcity a. individuals and societies are allowed no choice about which wants and needs to satisfy. b. individuals and societies must choose which wants and needs to satisfy. c. all choices about wants and using resources must be made by the government. d. choices can be made about which wants to satisfy, but not about which resources to use. e. choices must be made about which resources to use, but not about which wants to satisfy.

Q: A good is ________ if it takes even a small amount of time, energy, or money to acquire.a. abundant b. in shortage c. cheapd. scarcee. virtually free

Q: As a new firm in the apple-picking business, Nicolette has considered adding an economist to her management team. This economist would be unable to help her managerial team determine a. the lowest cost way of picking apples. b. how many apples consumers will purchase at different prices. c. why people eat apples. d. the effect government regulations would have on the price of apples. e. the lowest cost way of distributing apples.

Q: When consumers discard their gasoline-powered automobiles for electric-powered ones, this partially reflects the ________ of gasoline.a. scarcity b. luxury c. necessityd. specializatione. incentive

Q: When Noahs parent tells him not to study economics because it is a pointless discipline, why is he or she INCORRECT? a. The government continues to play a role in our daily lives. b. People have the freedom to do whatever they want, and economists have nothing to add to their decision-making process. c. Economics is a tool used to understand what happens in a world where there are not enough resources to produce all the goods and services that are wanted and needed. d. Economics has nothing to offer in terms of understanding the stock market. e. Economics has nothing to offer in terms of understanding government programs like Social Security.

Q: As a discipline, economics is best described by which of the following? a. the study of how to control the effects of government actions b. the study of how to control the preferences of consumers so that there will be enough resources to produce all the goods and services that consumers want c. the study of how to use scarce resources to satisfy unlimited wants and needs d. the study of how to dispose of excess goods and services that nobody wants e. the study of how to maximize profits for firms

Q: The need to study economics would cease to exist if a. the government stopped controlling peoples actions. b. people were free to make decisions on their own. c. people put forth the effort required to attain the goods and services they wanted. d. people earned more than they spent. e. there were enough resources to produce all the goods and services people would like to obtain.

Q: An economist is an individual who would be LEAST able to answer which research question? a. how much of a product is purchased at a specific price b. how the tastes and preferences of consumers are determined c. what firms decide to produce d. how goods and services are distributed to the population e. how firms decide to produce a good or service

Q: The basic goal of economics is to a. control the effects of government action. b. determine how to distribute all that is produced in an economy. c. address the scarcity problem created because the populations desire for goods exceeds the ability to produce them. d. match limited resources to peoples limited wants and needs. e. control tastes and wishes so that there will be enough resources to produce all the goods and services that people want.

Q: Thomas Malthuss prediction of mass starvation failed to come true because of increases ina. population. b. productivity. c. temperature.d. government involvement.e. income.

Q: Economics is the study of a. how to make money. b. how to allocate resources to satisfy wants and needs. c. capitalism. d. how to make workers more productive and firms more profitable. e. markets.

Q: In economics, choices are necessary because of the presence ofa. luxuries. b. inefficiency. c. needs.d. scarcity.e. incentives.