Question 1

The Case in Point on the oil extraction suggests that one reason oil may become more costly is that :

Accepted Answer

A)  we will have to give up more and more valuable alternatives to extract oil.
B)  speculation is likely to drive up oil prices.
C)  oil producers are likely to become more greedy in the future.
D)  actually, the Case suggests that oil extraction is likely to become less costly and the future.

Question 2

The basic concern of economics is:

Accepted Answer

A)  to keep business firms from losing money.
B)  to prove that capitalism is better than socialism.
C)  to study the choices people make.
D)  to use unlimited resources to produce goods and services to satisfy limited wants.

Question 3

Something whose value does not change is a:

Accepted Answer

A)  variable.
B)  constant.
C)  hypothesis.
D)  all of the above.

Question 4

The sacrifice of an alternative is called:

Accepted Answer

A)  revenue.
B)  benefit.
C)  opportunity cost.
D)  production.

Question 5

An answer to the question "How are goods produced?" determines:

Accepted Answer

A)  who receives the goods that are produced.
B)  how tastes and preferences are determined.
C)  how resources are combined in the production of goods.
D)  the types and quantities of goods and services produced.

Question 6

A good is scarce if we must sacrifice something to obtain it.

Accepted Answer

A) True 
 B)False

Question 7

The current rate of unemployment of 5 percent is too high.This is a _______ statement.

Accepted Answer

A)  normative
B)  ceteris paribus
C)  positive
D)  fallacy of false cause

Question 8

Water is considered a scarce good rather than a free good because:

Accepted Answer

A)  it has alternative uses.
B)  it does not have alternative uses.
C)  scarce goods are less expensive than free goods.
D)  free goods are more expensive than scarce goods.

Question 9

Margin suggests additional or incremental.

Accepted Answer

A) True 
 B)False

Question 10

Microeconomics deals with:

Accepted Answer

A)  the working of the entire economy or large sectors of it.
B)  employment, growth, and inflation.
C)  individual units in the economy.
D)  normative economics for the most part.

Question 11

The problem of determining what goods and services society should produce exists because:

Accepted Answer

A)  resources are plentiful.
B)  resources are scarce.
C)  most of our resources are privately rather than socially owned.
D)  most of our resources are socially rather than privately owned.

Question 12

The problem of scarcity is confronted by:

Accepted Answer

A)  industrialized societies.
B)  pre-industrialized societies.
C)  societies governed by communist philosophies.
D)  all societies.

Question 13

A free good is:

Accepted Answer

A)  also a scarce good.
B)  a relatively abundant good.
C)  a good with no opportunity cost.
D)  a good with relatively low opportunity cost.

Question 14

The situation when we face alternative choices is called abundance.

Accepted Answer

A) True 
 B)False

Question 15

Microeconomics is most likely to be concerned with the:

Accepted Answer

A)  economy as a whole.
B)  activity of large segments of the economy.
C)  economic behavior of specific parts or units of the economy.
D)  economy-wide trends in unemployment, prices, and production.

Question 16

Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying:

Accepted Answer

A)  microeconomics.
B)  macroeconomics.
C)  specific units or parts of the economy.
D)  the "trees" of economic behavior, rather than the "forest."

Question 17

A term that means "all other things unchanged" is:

Accepted Answer

A)  dependent variable.
B)  independent variable.
C)  quid pro quo.
D)  ceteris paribus.

Question 18

The opportunity cost of something is:

Accepted Answer

A)  greater during periods of rising prices.
B)  equal to the money cost.
C)  less during periods of falling prices.
D)  what is given up to acquire it.

Question 19

Anything whose value can change is a:

Accepted Answer

A)  variable.
B)  constant.
C)  hypothesis.
D)  all of the above.

Question 20

Macroeconomics is most likely to be concerned with the:

Accepted Answer

A)  amount of unemployment in a specific industry.
B)  economic behavior of a particular household.
C)  economic behavior of specific parts or units of the economy.
D)  aggregates in the economy.

Exam 1: Economics: the Study of Choice

Something whose value does not change is a:

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Anything whose value can change is a:

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The current rate of unemployment of 5 percent is too high.This is a _______ statement.

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An answer to the question "How are goods produced?" determines:

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Microeconomics is most likely to be concerned with the:

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The opportunity cost of something is:

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The situation when we face alternative choices is called abundance.

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Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying:

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The problem of determining what goods and services society should produce exists because:

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The basic concern of economics is:

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A good is scarce if we must sacrifice something to obtain it.

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The Case in Point on the oil extraction suggests that one reason oil may become more costly is that :

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The sacrifice of an alternative is called:

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Macroeconomics is most likely to be concerned with the:

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A term that means "all other things unchanged" is:

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Microeconomics deals with:

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The problem of scarcity is confronted by:

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Water is considered a scarce good rather than a free good because:

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A free good is:

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Margin suggests additional or incremental.

Correct AnswerverifiedShow Answer

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