Question 1

Which of the following best describes the concept of opportunity cost?

Accepted Answer

The value of the next best alternative that is forgone when a choice is made.

Question 2

Suppose a city has a budget of $$12 million to spend on either road repairs or new bicycle paths. If the cost of repairing 1 km of road is 1 $$million and the cost of building 1 km of bicycle path is $0.5 million, what is the opportunity cost of repairing 1 km of road?

Accepted Answer

2 km of new bicycle paths

Question 3

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

Accepted Answer

Money

Question 4

A production possibilities boundary (PPB) illustrates all of the following EXCEPT:

Accepted Answer

The exact amount of money in circulation

Question 5

If an economy is operating inside its production possibilities boundary, what does this indicate?

Accepted Answer

Some resources are idle or used inefficiently.

Question 6

Which of the following equations correctly represents the opportunity cost of producing good X in terms of good Y, given a linear production possibilities boundary?

Accepted Answer

$$OC_{X} = \frac{\Delta Y}{\Delta X}$$

Question 7

Which of the following statements about market economies is TRUE?

Accepted Answer

Market economies are self-organizing, as individuals acting in their own self-interest can lead to efficient outcomes.

Question 8

Adam Smith argued that the coordination of economic activity in a market economy is primarily achieved through:

Accepted Answer

Individuals pursuing their own self-interest

Question 9

Which of the following is a real-world example of opportunity cost?

Accepted Answer

A student chooses to attend university instead of working full-time, giving up the salary they could have earned.

Question 10

Which of the following best explains why money facilitates trade in a modern economy?

Accepted Answer

Money allows for the separation of transactions, making trade more efficient than barter.

Question 11

Suppose a country can produce either 100 units of wheat or 200 units of corn with its available resources. What is the opportunity cost of producing 1 unit of wheat in terms of corn?

Accepted Answer

$$2$$ units of corn / 1 unit of wheat = 2$ units of corn

Question 12

Which of the following is NOT a characteristic of a mixed economy?

Accepted Answer

It relies solely on central planning for all economic decisions.

Question 13

Which of the following is an example of a government policy addressing the fairness of distribution of consumption?

Accepted Answer

Implementing progressive income taxes to redistribute wealth

Question 14

If a country experiences economic growth, how is this represented on a production possibilities boundary (PPB) diagram?

Accepted Answer

The PPB shifts outward.

Question 15

Which of the following best describes the division of labour?

Accepted Answer

The breaking up of a production process into a series of specialized tasks.

Question 16

Which of the following is a major challenge associated with globalization?

Accepted Answer

Human rights and environmental concerns

Question 17

Which of the following statements about specialization and trade is TRUE?

Accepted Answer

Specialization must be accompanied by trade to allow individuals to consume beyond their own production.

Question 18

Which of the following is an example of a public good provided by the government to correct a market failure?

Accepted Answer

National defense

Question 19

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

Accepted Answer

Microeconomics studies the allocation of resources by individual firms and households, while macroeconomics studies aggregate economic variables such as total output and employment.

Question 20

Which of the following is a plausible reason for why some resources in an economy might be idle?

Accepted Answer

Idle resources may result from a lack of demand or economic downturns.

Economic Issues and Concepts: Foundations of Microeconomics

스터디 가이드 - 연습 문제

학습 가이드 - 플래시카드