11. 

Drive-reduction approaches to motivation are:

A. 

theories suggesting that a lack of some basic biological need produces a drive to push an organism to satisfy that need.

B. 

theories suggesting that we try to maintain certain levels of stimulation and activity.

C. 

theories suggesting that motivation stems from the desire to obtain valued external goals.

D. 

theories suggesting that motivation is a product of people's thoughts, expectations, and goal.

12. 

Which approach to motivation is correctly paired with a behavior to which it is especially appropriate?

A. 

Drive-reduction—eating

B. 

Arousal—studying

C. 

Cognitive—riding roller coasters

D. 

Incentive—sleeping

13. 

Motivational tension or arousal that energizes behavior to fulfill a need is termed a(n):

A. 

drive.

B. 

reflex.

C. 

incentive.

D. 

instinct.

14. 

Why do drive-reduction approaches fail to offer a complete account of human motivation?

A. 

Homeostasis does not accurately describe the mechanism by which primary drives operate.

B. 

Drive-reduction approaches offer much better explanations of behaviors motivated by secondary drives than of behaviors motivated by primary drives.

C. 

People are sometimes motivated to increase rather than decrease their level of stimulation.

D. 

Drive-reduction approaches are vague about what, or even how many, primary drives exist.

15. 

Dr. LaGrange is skeptical of drive theories of motivation. Which of the following behaviors is he most likely to cite to justify his skepticism?

A. 

Bungee jumping

B. 

Engaging in sexual intercourse

C. 

Eating a quick meal

D. 

Pursuing a stranger with a knife

16. 

To which of the following behaviors is the drive-reduction approach least applicable?

A. 

Sleeping extra hours after having disturbed sleep the previous day

B. 

Drinking a cola on a hot day

C. 

Having a snack

D. 

Studying long hours

17. 

Does the drive-reduction approach offer a comprehensive account of motivation? Which of the following explains it?

A. 

No. The drive-reduction approach explains how primary drives motivate behavior but fails to satisfactorily explain a behavior in which the goal is to increase arousal level.

B. 

No. The drive-reduction approach fails to account for many motives, including physiological ones.

C. 

Yes. The drive-reduction approach offers a satisfactory explanation of not only physiological motives, but also offers a satisfactory explanation for more psychologically oriented ones.

D. 

Yes. The drive-reduction approach has been empirically supported.

18. 

What is homeostasis?

A. 

A theory of need reduction

B. 

The body’s tendency to maintain a steady internal state

C. 

The psychological representation of primary needs

D. 

The diffusion of fluids into a cell

19. 

When blood pH becomes overly acidic, respiration and kidney function change to bring the acidity back to its normal pH level of 7.4. What does this process best exemplify?

A. 

Metabolism

B. 

Acclimatization

C. 

Homeostasis

D. 

An opponent-process system

20. 

The arousal approach to motivation suggests that:

A. 

a lack of some basic biological need produces a drive to push an organism to satisfy that need.

B. 

if levels of stimulation and activity are too low, people will try to increase them by seeking stimulation.

C. 

motivation stems from the desire to obtain valued external goals.

D. 

motivation is a product of people's thoughts, expectations, and goals.

41) ________ is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which the sum of consumer surplus and producer surplus is at a maximum.

A) Economic efficiency

B) Consumer efficiency

C) Producer efficiency

D) Deadweight efficiency

42) If, in a competitive market, marginal benefit is greater than marginal cost

A) the net benefit to consumers from participating in the market is greater than the net benefit to producers.

B) the government must force producers to lower price in order to achieve economic efficiency.

C) the quantity sold is greater than the equilibrium quantity.

D) the quantity sold is less than the equilibrium quantity.

43) In a competitive market the ________ curve shows the marginal benefit received by consumers and the ________ curve shows the marginal cost to producers.

A) .demand; supply

B) supply; demand

C) demand; market demand

D) supply; market supply

Figure 4-7

44) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At a price of $3

A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low.

B) producers should lower the price to $1 in order to sell the quantity demanded of 10,000.

C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.

D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.

45) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At a price of $1

A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low.

B) producers should raise the price to $3 in order to sell the quantity demanded of 30,000.

C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.

D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.

46) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1

A) the quantity supplied is less than the economically efficient quantity.

B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient.

C) economic surplus is maximized.

D) not enough consumers want to buy iced tea.

47) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3

A) the quantity supplied is greater than the economically efficient quantity.

B) the quantity demanded is economically efficient but the quantity supplied is economically inefficient.

C) economic surplus is maximized.

D) too many consumers want to buy iced tea.

48) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3, what changes in the market would result in an economically efficient output?

A) The price would decrease, the quantity supplied would increase, and the quantity demanded would decrease.

B) The quantity supplied would decrease, the quantity demanded would increase and the equilibrium price would decrease.

C) The price would decrease, the demand would increase and the supply would decrease.

D) The price would decrease, quantity demanded would increase and quantity supplied would decrease.

49) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1, what changes in the market would result in an economically efficient output?

A) The price would increase, the quantity supplied would increase, and the quantity demanded would decrease.

B) The quantity supplied would increase, the quantity demanded would decrease and the equilibrium price would increase.

C) The price would increase, the demand would increase and the supply would decrease.

D) The price would increase, quantity demanded would increase and quantity supplied would decrease.

50) Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 20,000 units of iced tea are sold

A) the deadweight loss is equal to economic surplus.

B) producer surplus equals consumer surplus.

C) the marginal benefit of each of the 20,000 units of iced tea equals $3.

D) marginal benefit is equal to marginal cost.

11) Your roommate, Serafina, a psychology major, said, "The problem with economics is that it assumes that consumers and firms always make the correct decision. But we know that everyone's human, and we all make mistakes." Do you agree with her comment?

A) Yes, I agree with her. One cannot make predictions about economic behavior because in reality people make incorrect choices in many situations.

B) I disagree with her. Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave rationally, meaning they make the best decisions given their knowledge of the costs and benefits.

C) Yes, I agree with her. Economic theory should allow for irrational behavior so that we can have more reliable predictions.

D) I disagree with her. If we cannot assume that decisions are correct, then we will not be able to examine the moral implications of these decisions.

12) Consider the following statements:

a. Consumers rent more DVDs from a video store that rents DVDs at a lower price than other rival video stores in the area.

b. Department stores take steps to increase security since they believe it is more costly to allow shoplifting than to install expensive security monitoring equipment.

c. Farmers produce more cotton when its selling price falls.

Which of the above statements demonstrates that economic agents respond to incentives?

A) a only.

B) b only.

C) c only.

D) a and b.

E) a, b, and c.

13) In the first six months of 2003, branches of Commerce Bank in New York City were robbed 14 times. The New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called "bandit barriers." The police were surprised the bank did not take their advice. According to a deputy commissioner of police, "Commerce does very little of what we recommend. They've told our detectives they have no interest in ever putting in the barriers."

It would seem that Commerce bank would have a strong incentive to install "bandit barriers" to deter robberies. Why wouldn't they do it?

A) The banks would rather delay installation of any theft deterring equipment in anticipation of new lower cost innovations in the security devices market.

B) The banks must have weighed the cost of installing bandit barriers against the benefits and decided that they have "no interest in ever putting in the barriers."

C) The banks are concerned that "bandit barriers" would send the wrong message to customers — that the bank is unsafe.

D) The banks probably resent any interference from the police department.

14) Holding all other personal characteristics-such as age, gender, and income-constant, economists would expect that

A) people without health insurance will be less likely to be overweight than people with health insurance.

B) people without health insurance will be more likely to be overweight than people with health insurance.

C) people without health insurance will be equally likely to be overweight as people with health insurance.

D) there is no correlation between not having health insurance and being overweight.

15) According to the Centers for Disease Control and Prevention, ________ in 2013 in which less than 20 percent of the population was considered obese.

A) Colorado was the only state

B) there were only 5 states

C) there were more than 25 states

D) there were no states

16) What does the term "marginal" mean in economics?

A) the edge of a market

B) an additional or extra

C) illegal

D) secondary

E) trivial

17) An office supply store sells a ream of printer paper at a fixed price of $4.50. Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

A) marginal revenue

B) gross earnings

C) pure profit

D) marginal costs

E) net benefit

18) Economics promotes which of the following as the way to make the best decision?

A) Continue an enjoyable activity as long as you do not have to pay for it.

B) Continue an enjoyable activity until it is no longer enjoyable.

C) Continue an enjoyable activity until you cannot afford to pursue it.

D) Continue an enjoyable activity up to the point where its marginal benefit equals its marginal cost.

19) ________ involves undertaking an activity until its marginal benefits equal marginal costs.

A) Scarcity reduction

B) Central planning

C) Marginal analysis

D) Market intervention

20) The revenue received from the sale of an additional unit of a product

A) is a marginal benefit to the firm.

B) is called profit.

C) is called gross sales.

D) is called a net gain.

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