Q: If the price of a pizza falls from $$12 to 10$$, what is the percentage change in price? Use the formula $$\text{Percentage Change} = \frac{\text{New Value} - \text{Original Value}}{\text{Original Value}} \times 100\%.$$

$$\frac{10 - 12}{12} \times 100\% = -16.67\%$$

Q: If a triangle on a graph has a base of 4 units and a height of 6 units, what is its area? Use the formula $$\text{Area} = \frac{1}{2} \times \text{base} \times \text{height}.$$

$$\frac{1}{2} \times 4 \times 6 = 12$$

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 you decide to spend two hours working at a part-time job instead of studying for an exam. If you earn $30 during those two hours, but your expected exam grade drops, what is the opportunity cost of working?

Accepted Answer

The value of the higher exam grade you gave up by not studying.

Question 3

Which of the following statements is a positive statement?

Accepted Answer

"Raising the minimum wage will lead to higher unemployment among teenagers."

Question 4

In the circular flow diagram, which of the following is true?

Accepted Answer

Households sell factors of production to firms.

Question 5

If the price of a pizza falls from $$12 to 10$$, what is the percentage change in price? Use the formula $$	ext{Percentage Change} = \frac{	ext{New Value} - 	ext{Original Value}}{	ext{Original Value}} 	imes 100\%.$$

Accepted Answer

$$\frac{10 - 12}{12} 	imes 100\% = -16.67\%$$

Question 6

Which of the following best illustrates the concept of marginal analysis?

Accepted Answer

Deciding whether to eat one more slice of pizza based on the additional satisfaction it brings.

Question 7

A straight line on a graph passes through the points $$(2, 5)$$ and $$(6, 13). $$What is the slope of the line? Use the formula $$	ext{Slope} = \frac{y_2$ - y_1$}{x_2$ - x_1$}.$$

Accepted Answer

$$\frac{13 - 5}{6 - 2} = 2$$

Question 8

Which of the following is an example of allocative efficiency?

Accepted Answer

A bakery produces the exact mix of bread and cakes that consumers prefer.

Question 9

If a triangle on a graph has a base of 4 units and a height of 6 units, what is its area? Use the formula $$	ext{Area} = \frac{1}{2} 	imes 	ext{base} 	imes 	ext{height}.$$

Accepted Answer

$$\frac{1}{2} 	imes 4 	imes 6 = 12$$

Question 10

Which of the following best describes the difference between correlation and causation?

Accepted Answer

Correlation is when two variables move together, but causation is when one variable directly affects the other.

Question 11

Convert 31.34% to a decimal.

Accepted Answer

0.3134

Question 12

Which of the following is a normative statement?

Accepted Answer

"The government should provide free college education."

Question 13

A rectangle on a graph has a base of 5 units and a height of 3 units. What is its area? Use the formula $$	ext{Area} = 	ext{base} 	imes 	ext{height}.$$

Accepted Answer

$$5 	imes 3 = 15$$

Question 14

If the marginal benefit of consuming one more unit of a good is $$10 and the marginal cost is 8$$, what should a rational consumer do?

Accepted Answer

Consume one more unit.

Question 15

Which of the following best defines productive efficiency?

Accepted Answer

Producing goods and services at the lowest possible cost.

Question 16

If $$\frac{8}{6} is $$simplified, what is the result?

Accepted Answer

$$\frac{4}{3}$$

Question 17

Which of the following is NOT a key economic idea discussed in microeconomics?

Accepted Answer

People always act in the interest of society as a whole.

Question 18

If last year’s sales revenue was $$550,000 and this year’s is 800$$,000, what is the percentage change in sales revenue? Use $$	ext{Percentage Change} = \frac{800,000 - 550,000}{550,000} 	imes 100\%.$$

Accepted Answer

45.45%

Question 19

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

Accepted Answer

Microeconomics studies the choices of individuals and firms, while macroeconomics studies the economy as a whole.

Question 20

If $$0.4512 is $$converted to a percentage, what is the result?

Accepted Answer

45.12%

Microeconomics Chapter 1: Economics and Life – Study Notes

Study Guide - Practice Questions

Study Guide - Flashcards