1 A) how scarcity can be eliminated B) how firms manipulate prices C) how government influences resource allocation decisions D) the problem of scarce resources relative to human wants 2 A) increases as more videos are purchased B) is $1.00 C) is constant and equal to ½ song D) is constant and equal to 2 songs 3 A) if the marginal cost of studying an extra hour exceeds its marginal benefit B) if the marginal benefit of studying an extra hour exceeds its marginal cost C) if you got a lower than expected grade on your last exam D) because studying harder will improve your test scores 4 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0217511447/883728/ch01_q4.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (14.0K)</a>]]> A) increasing sacrifices of consumer goods B) decreasing sacrifices of consumer goods C) constant sacrifices of consumer goods D) no sacrifices of consumer goods 5 A) shift her budget line to the right B) shift her budget line to the left C) rotate her budget line, allowing her to buy more books but not more videos D) rotate her budget line, allowing her to buy more videos but not more books 6 A) some resources are always unemployed B) when resources are fully employed, an economy can produce more of one thing only by producing less of something else C) opportunity costs are constant D) businesses can sell more goods when their prices are low 7 A) how consumers respond to a change in gasoline prices B) the effects of an income tax reduction on the size of the national budget deficit C) the effects of aggregate consumer debt on overall consumption spending D) the relationship between the size of the money supply and the rate of inflation 8 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0217511447/883728/ch01_q8.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (6.0K)</a>]]> A) Point A B) Point B C) Point C D) Point D 9 A) governments must be relied upon to supply essential goods and services B) inflation and unemployment are unavoidable C) growing populations will deplete natural resources D) individuals and communities must make choices among competing alternatives 10 A) the economic perspective B) marginal analysis C) opportunity cost D) allocative efficiency
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