Question 1

Which of the following best defines economics?

Accepted Answer

The study of how individuals and societies allocate scarce resources to satisfy unlimited wants.

Question 2

Which of the following is a microeconomic topic?

Accepted Answer

The reasons why a consumer buys less honey.

Question 3

Scarcity in economics means:

Accepted Answer

Resources are limited and cannot satisfy all human wants.

Question 4

Which of the following pairs does NOT match correctly?

Accepted Answer

Capital and profit

Question 5

If you choose to travel in Europe instead of taking a summer job that pays $$11,600, and you spend 2$$,200 on transportation, $$350 on visas, and 1$$,400 on living expenses, what is your opportunity cost?

Accepted Answer

$15,550

Question 6

The opportunity cost of attending university includes:

Accepted Answer

The value of the next best alternative forgone, such as working full-time.

Question 7

Which of the following statements is a positive statement?

Accepted Answer

If the price of gasoline rises, people will drive less and use less gasoline.

Question 8

Suppose the marginal benefit of spending an extra hour studying is greater than the marginal cost. According to the economic way of thinking, what should you do?

Accepted Answer

Spend more time studying.

Question 9

Which of the following best describes the slope of a straight line in economics?

Accepted Answer

The ratio of the vertical change to the horizontal change between two points.

Question 10

Given the equation $$y = 20 + 4x$$, what is the slope of the line?

Accepted Answer

$$4$$

Question 11

Refer to the graph of household expenditure versus household income. If household income increases from $$16,000 to 32$$,000 and expenditure increases from $$16,000 to 32$$,000, what is the slope of the line?

Accepted Answer

$$1$$

Question 12

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

Accepted Answer

The government should provide free healthcare to all citizens.

Question 13

If the marginal cost of an activity exceeds its marginal benefit, what is the rational choice?

Accepted Answer

Decrease the activity.

Question 14

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

Accepted Answer

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

Question 15

In the context of economic graphs, if two variables move in opposite directions, this is known as:

Accepted Answer

A negative relationship.

Question 16

Which of the following is NOT one of the two big economic questions?

Accepted Answer

How do businesses maximize their profits?

Question 17

If the slope of a curve at point A is $$-2$$ and at point B is $$-0.25$$, what does this indicate about the curve?

Accepted Answer

The curve is steeper at point A than at point B.

Question 18

Which of the following best describes the role of an entrepreneur in the economy?

Accepted Answer

Organizes land, labor, and capital to produce goods and services.

Question 19

If Apple Inc. decides to make iTunes freely available in unlimited quantities, which of the following is true?

Accepted Answer

This is a microeconomic issue.

Question 20

Which of the following is an example of a decision made in the social interest?

Accepted Answer

The government requires food to be labeled with nutrition data.

Introduction to Microeconomics: Key Concepts and Graphical Analysis

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