Question 1

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

Accepted Answer

A situation in which unlimited wants exceed the limited resources available to fulfill those wants.

Question 2

According to economic theory, why do firms like Apple choose to manufacture products overseas?

Accepted Answer

To maximize profits by minimizing production costs, given the scarcity of resources.

Question 3

Which of the following is an example of a marginal decision?

Accepted Answer

Deciding whether to study for one more hour or watch TV.

Question 4

What is the opportunity cost of a government increasing funding for space exploration?

Accepted Answer

The value of the next best alternative forgone, such as funding cancer research.

Question 5

Which of the following best describes a market economy?

Accepted Answer

An economy in which the decisions of households and firms interacting in markets allocate economic resources.

Question 6

What is meant by productive efficiency?

Accepted Answer

A situation in which a good or service is produced at the lowest possible cost.

Question 7

Which of the following is an example of allocative efficiency?

Accepted Answer

Every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it.

Question 8

A Congressional bill proposes taxing firms an amount equal to the government assistance their workers receive. What is a possible unintended consequence of this policy?

Accepted Answer

Firms may avoid hiring workers who are eligible for government assistance.

Question 9

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

Accepted Answer

Raising the minimum wage will increase unemployment among teenagers.

Question 10

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 line connecting these two points?

Accepted Answer

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

Question 11

Which of the following best describes voluntary exchange?

Accepted Answer

A situation in which both the buyer and the seller of a product are made better off by the transaction.

Question 12

Which of the following is a normative statement?

Accepted Answer

The government should provide free healthcare to all citizens.

Question 13

If a firm’s total revenue is calculated as the area of a rectangle on a graph, and the price per unit is $2.00 while the quantity sold is 125,000 units, what is the total revenue?

Accepted Answer

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

Question 14

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

Accepted Answer

Assume all variables are unrelated.

Question 15

What is the formula for percentage change in an economic variable?

Accepted Answer

$$\frac{	ext{New Value} - 	ext{Old Value}}{	ext{Old Value}} 	imes 100\%$$

Question 16

Which of the following is an example of a trade-off?

Accepted Answer

A city government must choose between building a new park or repairing roads due to limited funds.

Question 17

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 18

If the area of a triangle on a graph is calculated as $$\frac{1}{2} 	imes 	ext{base} 	imes 	ext{height}$$, what is the area of a triangle with a base of 10 and a height of 5?

Accepted Answer

$$\frac{1}{2} 	imes 10 	imes 5 = 25$$

Question 19

Which of the following is a key skill gained from studying economics?

Accepted Answer

The ability to analyze choices and predict the likely consequences of those choices.

Microeconomics: Foundations and Models – Chapter 1 Study Notes

Guida di studio - Domande di pratica

Study guide - Flashcard