To Discourage Guessing on a Multiple-Choice Exam, a Professor Assigns

question 173

Multiple Choice

To discourage guessing on a multiple-choice exam, a professor assigns 4 points for a correct answer, -2 points for an incorrect answer, and -1 point for leaving the question blank. What is the score for a student who had 18 correct answers, had 8 incorrect answers, and left 4 questions blank?

• A) 52
• B) 60
• C) 84
• D) 56
• E) 36

Discuss the concept of potential output and factors that influence it.

Recognize how actual price levels compared to expected price levels affect economic decisions and outcomes.

Understand the implications of expansionary and recessionary gaps in the short-run.

Explain the role of resource prices and costs of production in determining the slope of the short-run aggregate supply curve.

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Definitions:

Political Candidates

Individuals who run for office in governmental elections, seeking to hold a position within a government body.

Consumer Sovereignty

The theory that consumer preferences determine the production of goods and services, making consumers the driving force of the economy.

Fundamental Economic Question

The basic inquiries regarding how a society decides on the allocation of scarce resources to satisfy unlimited wants.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand.