Practice Test for Final

Practice Test for Final - Practice Test for Final (You MUST...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Practice Test for Final (You MUST practice all the three Midterm practice tests also) Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Resources are a. scarce for households but plentiful for economies. b. plentiful for households but scarce for economies. c. scarce for households and scarce for economies. d. plentiful for households and plentiful for economies. ____ 2. A tradeoff exists between a clean environment and a higher level of income in that a. studies show that individuals with higher levels of income actually pollute less than low- income individuals. b. efforts to reduce pollution typically are not completely successful. c. laws that reduce pollution raise costs of production and reduce incomes. d. by employing individuals to clean up pollution, employment and income both rise. ____ 3. For which of the following individuals would the opportunity cost of going to college be highest? a. a promising young mathematician who will command a high salary once she earns her col- lege degree b. a student with average grades who has never held a job c. a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degree d. a student who is the best player on his college basketball team, but who lacks the skills ne- cessary to play professional basketball ____ 4. Suppose your management professor has been offered a corporate job with a 30 percent pay increase. He has decided to take the job. For him, the marginal a. cost of leaving was greater than the marginal benefit. b. benefit of leaving was greater than the marginal cost. c. benefit of teaching was greater than the marginal cost. d. All of the above are correct. ____ 5. In a market economy, economic activity is guided by a. the government. b. corporations. c. central planners. d. self-interest and prices. ____ 6. Market failure can be caused by a. low consumer demand. b. government intervention and price controls. c. externalities and market power. d. high prices and foreign competition. ____ 7. The term "productivity" a. means the same thing as "efficiency." b. is seldom used by economists, as its meaning is not precise. c. refers to the quantity of goods and services produced from each hour of a worker's time. d. refers to the variety of goods and services from which households can choose when they shop. ____ 8. An economic outcome is said to be efficient if the economy is a. using all of the resources it has available. b. conserving on resources, rather than using all available resources.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
c. getting all it can get from the scarce resources it has available. d. able to produce more than what is currently being produced without additional resources. ____ 9.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 35

Practice Test for Final - Practice Test for Final (You MUST...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online