MACRO TEST1 - Macro Test #1Ch1,1A Student: _ 1. The primary...

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Macro Test #1Ch1,1A Student: ___________________________________________________________________________ 1. The primary focus of the study of economics is with: A. Expanding the production of goods and services B. Making the best use of scarce productive resources C. Equalizing the distribution of consumer income and wealth D. Reallocating resources from consumption to production in the economy 2. What is the economic meaning of the expression that "there is no such thing as a free lunch"? A. It refers to "free-riders," who do not pay for the cost of a product, but who receive the benefit from it B. It means that economic freedom is limited by the amount of income available to the consumer C. It means that there is an opportunity cost when resources are used to provide "free" products D. It indicates that products only have value because people are willing to pay for them 3. Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Tammie's trip to the concert is: A. $300 B. $450 C. $500 D. $600 4. The opportunity cost for a consumer who smokes cigarettes is the: A. Costs imposed on others who inhale tobacco smoke B. Amount of tax levied on the cigarettes the consumer buys C. Products that the consumer could have consumed instead of cigarettes D. Cost of complementary products such as lighters, ashtrays, and cigarette holders 5. When an economist says that there is "too much of a good thing," the economist is suggesting that: A. Economic goals are conflicting B. Economic goals are complementary C. The marginal cost of the thing is less than the marginal benefit D. The marginal benefit of the thing is less than the marginal cost
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6. Which question is an example of a macroeconomic question? A. What is the level of industrial concentration in the automobile industry?
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This note was uploaded on 09/13/2009 for the course ECO ECO2013 taught by Professor Jominy during the Spring '08 term at Broward College.

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MACRO TEST1 - Macro Test #1Ch1,1A Student: _ 1. The primary...

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