1 Microeconomics deals with the working of the entire economy or large sectors of it Incorrect economic growth Incorrect individual decision makers in the economy True Answer Correct gross domestic product Incorrect The study of a single firm and how it determines prices would fall under the study of macroeconomics Incorrect microeconomics True Answer Correct economic growth Incorrect fiscal policy Incorrect 2 3 Macroeconomics deals with bits and pieces of the economy Incorrect the question of how a business unit should operate profitably Incorrect the working of the entire economy or large sectors of it True Answer Correct how individuals make decisions Incorrect 4 The primary emphasis in macroeconomics is on how firms set prices Incorrect the national economy True Answer Correct marginal analysis Incorrect bits and pieces of the economy Incorrect 5 Which of the following would be studied in macroeconomics the change in automobile sales due to a change in the price of automobiles Incorrect the impact of a tax reduction on the profits of an individual business Incorrect recessions True Answer Correct the unemployment of workers displaced by technological change in the typesetting industry Incorrect 6 Scarcity in economics means We do not have sufficient resources to produce all the goods and services we want True Answer Correct The wants of people are limited Incorrect There must be poor people in rich countries Incorrect Shortages exist in nearly all markets Incorrect 7 If resources are scarce it means that they cannot provide enough goods or services to satisfy all human material wants and needs True Answer Correct have no opportunity cost Incorrect are probably not valued by consumers Incorrect have an unlimited supply Incorrect A key theme fundamental to all of economics is There are limited wants Incorrect We are a rich country but are simply not aware of it Incorrect People have unlimited wants facing limited means to satisfy them True Answer Correct There are unlimited resources Incorrect The problem of scarcity is confronted by industrialized societies only Incorrect preindustrialized societies only Incorrect societies governed by communist philosophies only Incorrect all societies True Answer Correct When we are forced to make choices we are facing the concept of ceteris paribus Incorrect free goods Incorrect scarcity True Answer Correct the margin Incorrect 8 9 10 11 12 13 The basic concern of microeconomics is to keep business firms from losing money Incorrect to prove that capitalism is better than socialism Incorrect to study the choices people make True Answer Correct to use unlimited resources to produce goods and services to satisfy limited wants Incorrect How people choose among the alternatives available to them is not part of the study of economics Incorrect impossible to describe Incorrect the study of microeconomics True Answer Correct not important Incorrect We are forced to make choices because of exploitation Incorrect efficiency Incorrect scarcity True Answer Correct the margin Incorrect 14 Scarcity exists when making choices among two or more alternatives is not necessary Incorrect individuals can have more of any good Incorrect individuals can have more of one good but only at the expense of another True Answer Correct resources are unlimited Incorrect 15 Scarcity in economics means We do not have sufficient resources to produce all of the goods and services we want True Answer Correct The wants of people are limited Incorrect There must be poor people in rich countries Incorrect Economists are clearly not doing their jobs Incorrect 16 17 18 19 20 Although water is very abundant in most places it is scarce because it has no alternative uses Incorrect there is not enough of it to meet all needs True Answer Correct it is a free good Incorrect scarce goods in general are not all that costly Incorrect Water is considered a scarce good because not enough of it is available for all needs True Answer Correct it does not have any uses Incorrect scarce goods are less expensive Incorrect not enough of it is available for all needs and because it is less expensive Incorrect The problem of determining what goods and services society should produce exists because we can produce more than we need or want Incorrect exists because there are not enough resources to provide all of the goods and services that people want to purchase True Answer Correct would not exist if all goods and services were scarce Incorrect would not exist if government owned all of the resources Incorrect In China which of the following would not be a resource in the production of rice fertile land Incorrect labor Incorrect capital equipment Incorrect money True Answer Correct A resource is anything that can be used in production True Answer Correct you pay for Incorrect 21 22 23 24 25 is in scarce supply Incorrect can be consumed Incorrect We have to make choices because we have unlimited income Incorrect resources are scarce True Answer Correct resources are infinite Incorrect with good planning trade offs can be avoided Incorrect When a chef creates a dinner plate of food for a customer which of the following represents the physical capital resource the chef himself or herself Incorrect the oven True Answer Correct the food ingredients Incorrect the chef s training and experience Incorrect Manny is attending college and majoring in economics Manny is improving his land Incorrect labor Incorrect capital Incorrect human capital True Answer Correct Which is not an example of a resource land Incorrect labor Incorrect capital Incorrect production True Answer Correct Which of the following can best be considered the resources used in the production of computers money from investors Incorrect wages of the engineers Incorrect computer engineers True Answer Correct taxes paid on the profits from the sale of the computers Incorrect 26 Opportunity cost is about half of the monetary cost of a product Incorrect the dollar payment for a product Incorrect the benefit derived from a product Incorrect the value of the best alternative forgone in making any choice True Answer Correct 27 The opportunity cost of something is greater during periods of rising prices Incorrect equal to the money cost Incorrect less during periods of falling prices Incorrect what is given up to acquire it True Answer Correct 28 Whenever a choice is made 29 30 the cost of that choice could be referred to as opportunity cost True
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