Question 1

Which of the following best describes the concept of scarcity in economics?

Accepted Answer

Scarcity means that resources are limited and cannot satisfy all human wants.

Question 2

A government decides to increase funding for healthcare, which results in less funding for education. This situation is best described as:

Accepted Answer

A trade-off, because increasing one good or service means reducing another due to scarcity.

Question 3

Which of the following is an example of an opportunity cost?

Accepted Answer

Choosing to attend college means giving up the income you could have earned working full-time.

Question 4

Suppose the price of pizza decreases from $$14 to 12$$, and the quantity demanded increases from 55 to 65 per week. What is the slope of the demand curve between these two points?

Accepted Answer

$$\frac{\Delta y}{\Delta x} = \frac{12 - 14}{65 - 55} = \frac{-2}{10} = -0.2$$

Question 5

Which of the following best explains why market economies tend to be more efficient than centrally planned economies?

Accepted Answer

Market economies promote productive and allocative efficiency through competition and voluntary exchange.

Question 6

A firm can produce a song by hiring a great singer or by hiring a mediocre singer and using Auto-Tune. This example illustrates which economic question?

Accepted Answer

How will the goods and services be produced?

Question 7

Which of the following is a normative statement?

Accepted Answer

The government should increase the minimum wage to reduce poverty.

Question 8

If a government policy unintentionally gives colleges an incentive to increase tuition, this is an example of:

Accepted Answer

Unintended consequences resulting from changes in economic incentives.

Question 9

Which of the following best describes the difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics studies individual households and firms, while macroeconomics studies the economy as a whole.

Question 10

A positive relationship between two economic variables means:

Accepted Answer

As one variable increases, the other variable also increases.

Question 11

Which formula correctly calculates the percentage change in a variable?

Accepted Answer

$$	ext{Percentage change} = \frac{	ext{Value in the second period} - 	ext{Value in the first period}}{	ext{Value in the first period}} 	imes 100$$

Question 12

If the area of a rectangle represents a firm's total revenue, and the base is 125,000 bottles and the height is $2.00 per bottle, what is the total revenue?

Accepted Answer

$$125,000 	imes 2.00 = 250,000$$

Question 13

Which of the following is an example of voluntary exchange?

Accepted Answer

A consumer buys a coffee from a café, and both the consumer and the café are better off.

Question 14

Which of the following is NOT a step in building an economic model?

Accepted Answer

Ignoring all available data to avoid bias.

Question 15

A line on a graph has a constant slope. This means the relationship between the two variables is:

Accepted Answer

Linear.

Question 16

Which of the following best describes the concept of equity in economics?

Accepted Answer

The fair distribution of economic benefits.

Question 17

If the area of a triangle on a graph has a base of 25,000 and a height of $0.50, what is the area?

Accepted Answer

$$\frac{1}{2} 	imes 25,000 	imes 0.50 = 6,250$$

Question 18

Which of the following is a common caveat about market economies?

Accepted Answer

Market outcomes might ignore the desires of people not involved in transactions, such as those affected by pollution.

Question 19

Which of the following is an example of a positive analysis?

Accepted Answer

An increase in the gasoline tax will reduce gasoline consumption.

chapter 3

Guida di studio - Domande di pratica

Study guide - Flashcard