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| 1 | |
The situation in which there is not enough of something to satisfy all the desires for that thing is called: |
| | A) | abundance. |
| | B) | scarcity. |
| | C) | demand. |
| | D) | plethora. |
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| 2 | |
The situation in which limited resources are being used most effectively is called: |
| | A) | efficient. |
| | B) | economic. |
| | C) | abundant. |
| | D) | scarce. |
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| 3 | |
The study of the behavior of firms, individual markets, and households is called: |
| | A) | normative economics. |
| | B) | positive economics. |
| | C) | macroeconomics. |
| | D) | microeconomics. |
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| 4 | |
The study of the behavior of the overall economy is called: |
| | A) | normative economics. |
| | B) | positive economics. |
| | C) | macroeconomics. |
| | D) | microeconomics. |
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| 5 | |
If we believed that event b occurs simply because it follows event a, then we would be trapped by the: |
| | A) | failure to hold other things equal. |
| | B) | fallacy of composition. |
| | C) | post hoc fallacy. |
| | D) | Adam Smith syndrome. |
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| 6 | |
The three fundamental questions of economic organization are: |
| | A) | when, for whom, and how. |
| | B) | how, what, and for whom. |
| | C) | who, how, and when. |
| | D) | what, who, and why. |
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| 7 | |
Economic questions that can be answered by examining data and making observations are part of: |
| | A) | normative economics. |
| | B) | positive economics. |
| | C) | macroeconomics. |
| | D) | microeconomics. |
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| 8 | |
Economic questions that can be answered through political debate and decisions are part of: |
| | A) | normative economics. |
| | B) | positive economics. |
| | C) | macroeconomics. |
| | D) | microeconomics. |
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| 9 | |
The _______ of a decision is the value of the good or service forgone. |
| | A) | opportunity cost |
| | B) | efficiency |
| | C) | economics |
| | D) | scarcity |
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| 10 | |
Productive _______ exists when an economy cannot produce more of one good without producing less of another good. |
| | A) | scarcity |
| | B) | economics |
| | C) | efficiency |
| | D) | opportunity cost |
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