Econ199_TEST1 - Name: _ Class: _ Date: _ ID: A Exam #1 Test...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Exam #1 Test Bank Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. What do economists mean when they state that a good is scarce? a. There is a shortage or insufficient supply of the good at the existing price. b. It is impossible to expand the availability of the good beyond the current amount. c. People will want to buy more of the good regardless of the price of the good. d. The amount of the good that people would like exceeds the supply freely available from nature. ____ 2. Economic analysis assumes that a. individuals act only out of selfish motives. b. although individuals are at times selfish and at times unselfish, only their selfish actions may be predicted. c. people are basically humanitarian, and their actions are, therefore, impossible to predict. d. changes in the personal benefits and costs associated with a choice will exert a predictable influence on human behavior. ____ 3. Which of the following are scarce? a. diamonds b. paper clips c. bubble gum d. all of the above ____ 4. In economics, man-made resources such as tools, equipment, and structures that are used to produce other goods and services are referred to as a. consumer goods. b. capital. c. marginal goods. d. infrastructures. ____ 5. The expression "There's no such thing as a free lunch" means a. if one person gains, someone else must lose. b. each person must pay for exactly what he or she receives. c. the use of resources to produce a good has an opportunity cost because of scarcity. d. you cannot have a free lunch at the expense of someone else. ____ 6. When economists say an individual displays economizing behavior, they simply mean that she is a. making a lot of money. b. buying only those products that are cheap and of low quality. c. learning how to run a business more effectively. d. seeking the lowest cost method to accomplish her objectives.
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Name: ________________________ ID: A 2 ____ 7. Which of the following is most consistent with economizing behavior? a. If you get the same satisfaction from a steak sandwich and a fish sandwich, you should purchase the one that costs the most. b. Even if you know how to paint, hiring someone to do the job is consistent with economizing behavior, if your opportunity cost is high enough. c. If the government provides a good free to citizens, the opportunity cost of the good is zero. d. If you get the same satisfaction from going to the opera and walking in the woods, it makes no difference which you choose. ____ 8. Which of the following is an example of a rational decision? a. Jim enjoys the feeling of wind in his hair enough to ride his motorcycle without a helmet, even though he fully realizes the potential for injury it creates by not wearing one in the unlikely event he is in an accident. b.
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This note was uploaded on 02/15/2010 for the course AA 123456 taught by Professor Hgdfgdgf during the Spring '10 term at École Normale Supérieure.

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Econ199_TEST1 - Name: _ Class: _ Date: _ ID: A Exam #1 Test...

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