Question 1

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

Accepted Answer

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

Question 2

Microeconomics is primarily concerned with which of the following?

Accepted Answer

The choices that individuals and businesses make, and how those choices interact in markets.

Question 3

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

Accepted Answer

Money

Question 4

In 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 equation best represents the concept of marginal analysis in decision-making?

Accepted Answer

$$MB = MC$$

Question 6

Which of the following statements is a positive statement?

Accepted Answer

"The unemployment rate in Canada is 6%."

Question 7

A rational choice in economics is defined as:

Accepted Answer

A choice that maximizes the benefit over cost for the person making the choice.

Question 8

Which of the following best illustrates a tradeoff?

Accepted Answer

Choosing to study for an exam instead of going to a concert.

Question 9

Which factor of production earns 'interest' as income?

Accepted Answer

Capital

Question 10

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

Accepted Answer

"Canada should increase its minimum wage."

Question 11

Suppose a student is deciding how many hours to study for an exam. The student compares the additional benefit of studying one more hour to the additional cost. This is an example of:

Accepted Answer

Choosing at the margin

Question 12

Which of the following is a real-world example of a conflict between self-interest and social interest?

Accepted Answer

A company polluting a river to reduce costs, harming the local community.

Question 13

If the marginal benefit of an activity is less than its marginal cost, what should a rational decision-maker do?

Accepted Answer

Decrease the activity.

Question 14

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

Accepted Answer

Physical strength

Question 15

Globalization is in the self-interest of which group?

Accepted Answer

Consumers who buy low-cost imported goods.

Question 16

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

Accepted Answer

Incentives are rewards or penalties that influence choices.

Question 17

Which of the following is an example of a positive statement that can be tested?

Accepted Answer

"Increasing carbon taxes will reduce emissions by 10%."

Question 18

Which of the following is a key idea in the economic way of thinking?

Accepted Answer

People make choices by comparing benefits and costs.

Question 19

Which of the following best explains why economists use models?

Accepted Answer

To simplify reality and focus on essential features for analysis.

Question 20

Suppose the opportunity cost of attending a concert is the value of the next best alternative you give up. If the ticket costs $$50 and you miss a 40 $$tutoring session, what is your total opportunity cost?

Accepted Answer

$$90$$

Introduction to Economics: Key Concepts and Questions

Study Guide - Practice Questions

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