Economy Quiz
Correct the following quiz questions in the word document I uploaded. ( We already know which questions I got right, which questions I got wrong, and what the correct answer is for those that I got wrong, so the only thing you should do is to explain the answers)
What to do: 1. Copy and paste the ACTUAL QUIZ QUESTION AND CHOICES for each missed problem.
2. Beneath each question/choices, explain why each WRONG answer is INCORRECT and why the CORRECT answer is CORRECT. You can do this using words, math, and/or graphs.
Here is an example of how to do it:
7. Economics is
A. the science of money
B. the science of choice (my answer)
C. the science that deals with the allocation of scarce resources
D. Both B and C (correct!)
Explanation:
While economics uses money at times to measure things, it is not the science that studies it. However, it does study how incentives can allow for differing allocation of scarce resources. The TL;DR of that is just choice. As such, both B and C are correct, and so the best answer is D.
1. Fred wants to hire someone for $20/hour to fix his house. George wants to fix houses for $16/hour. Which of the following income taxes would prevent this from happening?
A.$5
B.$3
C.$1
D.Both A and B (my answer)
E.None of the above
Answer Key:A
3. You are sick and tired of your old wardrobe. You decide to donate it to a charity of your choice. Your action
A.Creates wealth by moving the clothes from lower value use to higher value use
B.Destroys wealth since you lose your clothes (my answer)
C.Creates wealth by making you feel richer
D.All of the above
Answer Key:A
6. If the government imposes a price floor at $9 (i.e., price must be $9 or higher) in the above market, how many goods will be traded?
A.Five
B.Four
C.Three (my answer) (I think theres not enough information for this question)
D.Two
Answer Key:D
8. When demand for a product falls, which of the following events would you NOT necessarily expect to occur?
A.A decrease in the quantity of the product supplied
B.A decrease in its price
C.A decrease in the supply of the product
D.A leftward shift of the demand curve (my answer)
Answer Key:C
