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- 1. Multiple Choice
Economics is the study of
how society manages its unlimited resources.
how to reduce our wants until we are satisfied.
how to allocate resources to best satisfy our unlimited wants.
how to avoid having to make trade-offs.
- 2. Multiple Choice
A rational person
buys the cheapest products at all times
undertakes actions which produce marginal social benefits that exceed marginal social costs.
considers the marginal utility gained from an action and chooses those activities which generate the greatest utlity
none of these answers.
- 3. Multiple Choice
Which of the following is not part of the opportunity cost of going on holiday?
the London City break and theatre show which you gave up to afford the holiday
the money you could have made if you had stayed at home and worked
the money you spent on food
- 4. Multiple Choice
Which of the following statements is normative?
Large government deficits cause an economy to grow more slowly.
People work harder if the wage is higher.
The unemployment rate should be lower.
Printing too much money causes inflation.
- 5. Multiple ChoicePositive statements aremacroeconomic.microeconomic.statements of description that can be tested.statements of prescription that involve value judgments.
- 6. Multiple Choice
which of these is a cause of shifting the demand curve to the right hand side if goods are normal
increase in income of consumer
increase in price of substitute goods
decrease in price of complementary goods
all of these
- 7. Multiple Choice
if demand is perfectly elastic then demand curve would be
horizontal
vertical
rectangular hyperbola
none of these
- 8. Multiple Choice
Production Possibility Frontier can be..........
Concave
Convex
Straight
All of the above can be possible
- 9. Multiple Choice
If there is destruction of resources in an economy the PPF
Shifts left
Brings unemployment
Shifts right
None of the above
- 10. Multiple Choice
When the supply of a product or service shifts right and the demand stays the same the price will typically do what?
rise
fall
stay the same
Consumer
- 11. Multiple Choice
When the demand for a product or service is higher than the supply this causes what?
excess demand, price rises and demand contracts
excess demand, price rises and supply contracts
excess supply, price rises and supply contracts
equilibrium
- 12. Multiple ChoiceConsumer wants are the same as consumer demand.TrueFalse
- 13. Multiple ChoiceIn economics, the term demand refers to the quantity of a good that peoplewill buy at one particular price over a long time periodwould like to consume on a given datewill buy at many different prices at a particular timewould like to have available during a given time period
- 14. Multiple ChoiceWhich of the following could cause the price for automobiles to decrease?The local factory gives a big raise to its employees.None of the choicesA brand new automobile dealership opens in town.The price of gasoline falls.
- 15. Multiple ChoicePart of the reason that LeBron James earns millions of dollars each year while school teachers may earn $30,000 is because…consumers enjoy basketball to the point that they are willing to spend lots of money and time attending games and watching commercials.the supply of superstar basketball players is low, while the supply of competent teachers is much larger.demand for LeBron James' talents is very high since he can generate so much revenue for a firm.all of the choices
- 16. Multiple Choice
An increase in the price of Anadin is likely to be paired with a(n) ___________________ in the demand for Panadol because the two goods are __________________.
increase; complements
increase; substitutes
decrease; complements
decrease; substitutes
- 17. Multiple ChoicePrinters and ink cartridges are typically purchased together. Economists would call theseStubstituesComplementsElasticInelastic
- 18. Multiple ChoiceA government payment made to a business is ataxregulationsubsidyresource
- 19. Multiple Choice
Technology used to make cars improves. This will cause..
Supply to Increase
Demand to increase
Supply to Decrease
Demand to Decrease
- 20. Multiple Choice
Iphones become more expensive. What will happen to Iphone covers?
Increase Demand
Increase Supply
Decrease Demand
Decrease Supply
- Answer choicesTagsAnswer choicesTags