Question 1

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

Accepted Answer

Scarcity means there are not enough resources to satisfy all human wants.

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 factor of production is described as the 'gifts of nature' used to produce goods and services?

Accepted Answer

Land

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 else.

Question 5

Which of the following statements is a positive statement?

Accepted Answer

Increasing the minimum wage will lead to higher unemployment among teenagers.

Question 6

Which of the following best describes a rational choice?

Accepted Answer

A choice that compares costs and benefits and achieves the greatest benefit over cost for the person making the choice.

Question 7

Which of the following is NOT a factor of production?

Accepted Answer

Money

Question 8

Suppose you decide to spend an extra hour studying instead of watching TV. The value of the TV show you miss is an example of:

Accepted Answer

Marginal cost

Question 9

Which of the following best illustrates the concept of making choices at the margin?

Accepted Answer

Deciding whether to study for one more hour or go to sleep now.

Question 10

Which of the following is an example of an incentive?

Accepted Answer

A tax on cigarettes to discourage smoking.

Question 11

Which of the following best describes the difference between efficiency and equity?

Accepted Answer

Efficiency is about maximizing total benefit, while equity is about fairness in distribution.

Question 12

Which of the following is a normative statement?

Accepted Answer

The government should provide free education for all citizens.

Question 13

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

Accepted Answer

Climate change caused by individual choices to use fossil fuels.

Question 14

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

Accepted Answer

Advanced artistic skills

Question 15

If a country’s production is mostly in services, which of the following is most likely true based on the study materials?

Accepted Answer

It is a developed country like Canada.

Question 16

Which of the following best describes the role of an economic model?

Accepted Answer

A simplified description of some aspect of the economic world used to predict and understand economic behavior.

Question 17

Which of the following is an example of a positive statement that could be tested using economic data?

Accepted Answer

An increase in the price of gasoline leads to a decrease in the quantity demanded.

Question 18

Which of the following is a reason why diversity and inclusion are important in the economics profession?

Accepted Answer

They improve the quality of economic research and policy advice.

Question 19

Suppose a government wants to reduce carbon emissions. According to economic theory, which policy would best align individual self-interest with the social interest?

Accepted Answer

Imposing a tax on carbon emissions to change incentives.

Question 20

Which of the following best describes the opportunity cost of attending a concert instead of working a part-time job?

Accepted Answer

The wages you would have earned at the job plus any other activities you give up.

Introduction to Microeconomics: Foundations, Questions, and Careers

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