Devry ECO312 Final Exam/Devry ECO312 Final Exam /Devry ECO312 Final Exam

  

Question 1.1. (TCO 1) When a state government chooses to build more roads, the required resources are no longer available for spending on public education. This dilemma illustrates the concept of 

production expenses.

unemployment issues.

unintended consequences.

opportunity cost.

Question 2.2. (TCO1) Which is not a factor of production? 

Money

Land

Labor

Capital

Question 3.3. (TCO1) A point on the production possibilities curve is 

attainable and resources are fully employed.

attainable, but resources are unemployed.

unattainable, but resources are unemployed.

unattainable and resources are fully employed.

Question 4.4. (TCO1) A basic characteristic of a command system is that 

wages paid to labor are higher.

government owns most economic resources.

free markets are never permitted in a command economy.

government planners play a limited role in deciding what goods will be produced.

Question 5.5. (TCO 2) Which is consistent with the law of demand? 

A decrease in the price of tacos causes no change in the quantity of tacos demanded.

An increase in the price of pizza causes an increase in the quantity of pizza demanded.

An increase in the price of hamburgers causes a decrease in the quantity of hamburgers demanded.

A decrease in the price of turkey sandwiches causes a decrease in the quantity of turkey sandwiches demanded.

Question 6.6. (TCO 2) What combination of changes would most likely decrease the equilibrium price? 

When supply decreases and demand increases

When demand increases and supply increases

When demand decreases and supply decreases

When supply increases and demand decreases