 |
| 1 | |
All of the following statements, except one, are valid examples of the way economists use the term "scarcity." Which is the exception? |
| | A) | Households face a scarcity of income. |
| | B) | Individuals face a scarcity of time. |
| | C) | Economies face a scarcity of resources |
| | D) | The world faces a scarcity of ideas. |
|
|
|
| 2 | |
All of the following, except one, are topics found in microeconomics. Which one is the exception? |
| | A) | Supply and demand analysis |
| | B) | Cost analysis |
| | C) | Individual firm behaviour |
| | D) | What causes inflation |
|
|
|
| 3 | |
Meridith had only $16 to spend this last weekend. She was, at first, uncertain about whether to go to two movies she wanted to see, or to buy a new CD she had recently listened to. In the end, she went to the movies. Which of the following statements is correct? |
| | A) | The choice of the two movies and not the CD is an example of increasing costs. |
| | B) | The opportunity cost of the two movies is one CD. |
| | C) | The opportunity cost of the two movies is $16. |
| | D) | The choice of two movies rather than one CD was a bad one. |
|
|
|
| 4 | |
In reference to voluntary trade, what was Adam Smith the first to recognize? |
| | A) | It does not happen very often. |
| | B) | It may or may not benefit one or both of the parties to the trade. |
| | C) | It benefits one party to the trade but only at the expense of the other. |
| | D) | It benefits both parties to the trade. |
|
|
|
| 5 | |
What are the three fundamental questions in economics? |
| | A) | What to produce, how to produce it, and for whom is it produced. |
| | B) | Is it necessary, is it right, and is it valuable? |
| | C) | Who should produce, what is the right way to produce, and how should we decide? |
| | D) | What to produce, how to produce it, and who should produce it. |
|
|
|
| 6 | |
When, in time, did the market system first emerge? |
| | A) | In the early years of the twentieth century. |
| | B) | About 200 years ago. |
| | C) | Around the twelfth century. |
| | D) | The market system is as old as humankind. |
|
|
|
| 7 | |
Resources is a term that can be used interchangeably with: |
| | A) | Models |
| | B) | Consumer goods |
| | C) | Either factors of production or inputs |
| | D) | Technologies |
|
|
|
| 8 | |
What are the factors of production? |
| | A) | Land, labour, money, and enterprise |
| | B) | Land, labour, money, and capital |
| | C) | Land, labour, capital, and enterprise |
| | D) | Competition, command, custom, and co-operation |
|
|
|
| 9 | |
What are the names of the factor payments? |
| | A) | Consumption spending and investment spending |
| | B) | Wages and profits |
| | C) | Wages, interest, and profits |
| | D) | Wages, interest, rent, and profits |
|
|
|
| 10 | |
What is an example of an economic model? |
| | A) | Opportunity costs and comparative advantage |
| | B) | Scarcity of resources and unlimited wants |
| | C) | Positive statements and normative statements |
| | D) | The production possibilities curve |
|
|
|
| 11 | |
All of the following, except one, are capital goods. Which is the exception? |
| | A) | An office building |
| | B) | A boiler in a pulp mill |
| | C) | A householder's garden shed |
| | D) | An airport runway |
|
|
|
| 12 | |
What is the definition of opportunity cost? |
| | A) | The amount of money spent on a good |
| | B) | The value of the next-best alternative that is given up as a result of making a particular choice |
| | C) | The value of all the alternatives given up as result of making a particular decision |
| | D) | The cost incurred in producing a good |
|
|
|
| 13 | |
What is meant by allocative efficiency? |
| | A) | Ensuring that goods and services are distributed equally to people |
| | B) | Producing goods and services at the least cost |
| | C) | Maximizing the amount of output for a given input |
| | D) | The production of the combination of products that best satisfies consumers' demands |
|
|
.