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- 1. Multiple Choice
Economics is the study of
how to invest in the stock market.
how society uses limited resources.
the role of money in markets
how government officials decide which goods and services are produced.
- 2. Multiple Choice
An arrangement that allows buyers and sellers to exchange things is called
a contract.
a market.
money.
efficient.
- 3. Multiple Choice
Because resources are limited
only the very wealthy can get everything they want.
firms will be forced out of business.
the availability of goods will be limited but the availability of services will not.
people must make choices.
- 4. Multiple Choice
If there is a trade-off between goals A and B:
greater fulfillment of A means lesser fulfillment of B.
goals A and B are positively correlated.
causation exists between the two goals.
greater fulfillment of A means greater fulfillment of B.
- 5. Multiple Choice
The knowledge and skills acquired by a worker through education and experience is a description of which factor of production?
physical capital
human capital
labor
entrepreneurship
- 6. Multiple Choice
The effort used to coordinate the factors of production is a description of
physical capital.
human capital.
labor.
entrepreneurship.
- 7. Multiple Choice
Which of the following is an example of a normative question?
How will an increase in the inheritance tax affect tax revenues?
What fraction of an income tax cut will be spent on imported goods?
Should Florida implement a state income tax to reduce its deficit?
How will an increase in unemployment benefits affect the unemployment rate?
- 8. Multiple Choice
Which of the following is a question answered with positive economic analysis?
Should the college reduce tuition for out-of-state residents?
Should the college charge higher tuition for part-time students?
If the college increased its eligibility requirements for enrollment, will class sizes decline?
Should the college eliminate its athletic program to cut its costs?
- 9. Multiple Choice
An economic model is a
realistic version of an economic environment.
detailed version of an economic issue.
fictional representation of an entire economy.
simplified representation of an economic environment.
- 10. Multiple Choice
When entering a building, Sam diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path. This is an example of:
irrational behavior.
a lazy person.
marginal benefit-marginal cost analysis.
programmed learning.
- 11. Multiple Choice
There can be too much of a good thing. This statement suggests that:
rational choice cannot be applied to many economic decisions.
a good may be produced to the point where its marginal cost exceeds its marginal benefit.
certain goods and services such as education and health care are inherently desirable and should be produced regardless of costs and benefits.
a good may be produced to the point where its marginal benefit exceeds its marginal cost.
- 12. Multiple Choice
Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact:
is an example of irrational behavior.
implies that reading should be taught through phonics rather than the whole language method.
contradicts the economic perspective.
implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.
- 13. Multiple Choice
The Latin phrase ceteris paribus means that when a relationship between two variables is being studied,
both are treated as unpredictable.
neither of those two variables is allowed to change.
all other variables are held fixed.
we recognize that some factors are unknown
- 14. Multiple Choice
Which of the following is NOT a macroeconomic question?
Should we have a constitutional amendment requiring the federal government to balance the budget each year?
Should restaurants be required to list the number of calories for each product on their menus?
How does a fiscal stimulus package affect gross domestic product?
Should Congress enact tougher immigration laws to reduce unemployment?
- 15. Multiple Choice
If the price of a 32GB memory card decreases from $25 to $20, the percentage change is
-20 percent.
-33 percent.
-50 percent.
-60 percent.
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