micro-basics-test-form-a

micro-basics-test-form-a - Micro Basics, Form A Multiple...

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Micro Basics, Form A Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Scarcity a. is the inability to satisfy all our wants. b. leads to higher prices. c. applies only to people living in poverty. d. is not something that affects very rich people. e. used to exist everywhere but has been eliminated in advanced economies. 2. Which of the following statements best describes the study of economics? Economics studies how a. to organize production so that scarcity does not occur. b. firms make profits. c. we make choices in the face of scarcity. d. to create incentives so that scarcity does not exist. e. businesses reach decisions. 3. The opportunity cost of owning a business is equal to which of the following? I. The economic profits earned in the business II. The accounting profits earned in the business III. The profits that could be earned in another business using the same amount of resources. a. I only d. I and III only b. II only e. I, II, and III c. III only 4. The opportunity cost of a decision is measured in terms of a. time. b. the price of the alternative we choose. c. the next best thing given up. d. the price of a new opportunity that arises. e. sunk cost. 5. Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie. Leann is making a(n) a. decision that does not involve an opportunity cost. b. rational decision if her marginal cost from the movie is greater than her marginal benefit. c. rational decision if her marginal benefit from the movie is greater than her marginal cost. d. irrational decision because studying is more important than watching a movie. e. decision that is not on the margin because she will see the entire movie. 6. Which of the following is a microeconomic issue? a. The price of gasoline increases in the United States this year. b. The Brazilian economy experiences rapid economic growth. c. The unemployment rate soars in Spain. d. Inflation skyrockets in Russia. e. The U.S. government cuts taxes to combat a recession. 7. A statement that "All children should receive free health care" is an example of what kind of statement? a. A fair statement b. A natural experiment statement c. A normative statement d. A positive statement e. A statement on the margin
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8. The Latin phrase ceteris paribus means a. let the buyer beware. b. other things remaining the same. c. positive, not normative. d. normative, not positive. e. on the margin. 9. Economists classify energy and water as part of which factor of production? a. land b. labor c. capital d. entrepreneurship e. land if undeveloped and capital if developed 10. Which of the following items is a capital good? a.
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micro-basics-test-form-a - Micro Basics, Form A Multiple...

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