Question 1

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

Accepted Answer

Scarcity refers to the inability to satisfy all our wants due to limited resources.

Question 2

Which of the following is an example of a microeconomic question?

Accepted Answer

Why are people buying more e-books and fewer hard copy books?

Question 3

Which of the following is NOT considered a factor of production?

Accepted Answer

Money

Question 4

In the context of economics, what does the term 'opportunity cost' refer to?

Accepted Answer

The highest-valued alternative that must be given up to get something.

Question 5

Which of the following statements is a positive statement?

Accepted Answer

Raising taxes will reduce consumer spending.

Question 6

Suppose you are deciding whether to spend an extra hour studying or working at your part-time job. According to the economic way of thinking, what should you compare to make a rational choice?

Accepted Answer

The marginal benefit of studying with the marginal cost of not working.

Question 7

Which of the following best describes the difference between self-interest and social interest?

Accepted Answer

Self-interest refers to choices best for the individual, while social interest refers to choices best for society as a whole.

Question 8

Which of the following is an example of a normative statement?

Accepted Answer

The government ought to reduce carbon emissions.

Question 9

If the marginal benefit of an activity exceeds its marginal cost, what does the economic way of thinking suggest you should do?

Accepted Answer

Do more of the activity.

Question 10

Which of the following is a real-world example of a tradeoff?

Accepted Answer

A government must choose between spending on healthcare or education.

Question 11

Which factor of production earns 'wages'?

Accepted Answer

Labour

Question 12

Which of the following best describes the role of incentives in economics?

Accepted Answer

Incentives are rewards or penalties that influence choices.

Question 13

A government is considering a policy to reduce carbon emissions. According to economic analysis, what should be compared to evaluate the policy?

Accepted Answer

The marginal benefits and marginal costs of the policy.

Question 14

Which of the following is NOT a skill typically required for economics jobs?

Accepted Answer

Mechanical engineering skills

Question 15

Which of the following best explains why diversity and inclusion are important in the economics profession?

Accepted Answer

They help attract the best talent and improve the quality of economic research and policy advice.

Question 16

Suppose a country has to choose between producing more manufactured goods or more services. This decision is an example of which economic concept?

Accepted Answer

Tradeoff

Question 17

Which of the following best describes an economic model?

Accepted Answer

A simplified description of some aspect of the economic world used for analysis.

Question 18

If a student chooses to attend a concert instead of working a shift at their job, what is the opportunity cost of attending the concert?

Accepted Answer

The wages the student would have earned plus any other activities forgone.

Question 19

Which of the following is a likely effect of globalization according to the study materials?

Accepted Answer

It benefits consumers who buy low-cost imports and multinational firms, but may harm some domestic firms and workers.

Question 20

Which of the following best describes the relationship between efficiency and equity in economics?

Accepted Answer

Efficiency is about making the best use of resources, while equity is about fairness.

Chapter 1: What Is Economics? — Microeconomics Foundations

Guida di studio - Domande di pratica

Study guide - Flashcard