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1 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) Economics is the study of |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | production technology |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | consumption decisions |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | how society decides what, how, and for whom to produce |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | the best way to run society |
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2 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) The law of diminishing returns says that each extra worker adds ___________ to output than the previous extra worker ___________ |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | less, added |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | more, subtracted |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | less, subtracted |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | more, added |
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3 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) The opportunity cost of a good is |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | the time lost in finding it |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | the quantity of other goods sacrificed to get another unit of that good |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | the expenditure on the good |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | the loss of interest in using savings |
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4 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) Production efficiency is when ________ output of one good can be achieved for _________ of another |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | more, less |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | more, more |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | less, more |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | less, less |
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5 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) A market can accurately be described as |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | a place to buy things |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | a place to sell things |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | the process by which prices adjust to reconcile the allocation of resources |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | a place where buyers and sellers meet |
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6 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) In a free market __________ ___________ |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | governments intervene |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | governments plan production |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | governments interfere |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | governments do not intervene |
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7 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) In the mixed economy |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | economic problems are solved by the government and market |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | economic decisions are made by the private sector and free market |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | economic allocation is achieved by the invisible hand |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | economic questions are solved by government departments |
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8 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) Normative economics forms ___________ based on _____________ |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | positive statements, facts |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | opinions, personal values |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | C)![](/olcweb/styles/shared/spacer.gif) | positive statements, values |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | D)![](/olcweb/styles/shared/spacer.gif) | opinions, facts |
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9 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) A resource is scarce if supply exceeds demand at zero price |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | TRUE |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | FALSE |
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10 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) The area to the right of the production possibility frontier is achievable |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | TRUE |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | FALSE |
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11 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) A command economy decides resource allocation by government planning |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | TRUE |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | FALSE |
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12 | ![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) Positive economics studies objective explanations of the workings of the economy |
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![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | A)![](/olcweb/styles/shared/spacer.gif) | TRUE |
![](/olcweb/styles/shared/spacer.gif) | ![](/olcweb/styles/shared/spacer.gif) | B)![](/olcweb/styles/shared/spacer.gif) | FALSE |