quiz1summer2010 MACROECONOMICS

quiz1summer2010 MACROECONOMICS - Print Version of Quiz1...

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Print Version of Quiz1 summer2010 100 questions from Chapters 1-3 Complete the Bb version (online) by 10 p.m. on Sunday, June 27 20 points 1. The key economic concept that serves as the basis for the study of economics is: A. Inflation B. Unemployment C. Money D. Scarcity 2. As a consequence of the condition of scarcity: A. There is never enough of anything B. Production has to be planned by government C. Things which are plentiful have relatively high prices D. Individuals have to make choices from among alternatives 3. When a state government chooses to build more roads, the required resources are no longer available for spending on public education. This dilemma illustrates the concept of: A. Marginal analysis B. Full employment C. Full production D. Opportunity cost 4. After graduating from high school, Ron Willis plans to go to college. The college tuition is $15,000 a year. But, instead of going to college, Ron could take a full-time job paying $20,000. If Ron decides to go to college, what is his total economic cost for attending for one year? A. $5,000 B. $15,000 C. $20,000 D. $35,000 5. Henry wants to buy a book. The economic perspective suggests that Henry will buy the book if: A. Positive economics is more important than normative economics in the decision making B. Normative economics is more important than positive economics in the decision making C. The marginal cost of the book is greater than its marginal benefit D. The marginal benefit of the book is greater than its marginal cost 6. 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 7. When producers attempt to maximize their profits from the production of a good or service, they are: A. Testing a hypothesis B. Exhibiting rational behavior C. Assuming that all other things are equal D. Making a tradeoff between economic efficiency and economic freedom 8. Another description for ceteris paribus is: A. Other things equal B. Loaded terminology C. The fallacy of composition D. Post hoc, ergo propter hoc
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9. Which is not an illustration of a macroeconomic question? A. Does the price of oil affect the U.S. inflation rate? B. Are low interest rates helping car sales? C. How did the recession affect the U.S. unemployment rate? D. How does household consumption spending affect GDP? 10. Which would be a normative economic statement? A. The poverty rate increased last year B. Prices are increasing at a rate of 2 percent a year C. This administration should raise taxes to pay for childcare programs D. Retail sales were down in May 11. Individuals have to make choices because their: A. Goods are of greater value than their services B. Economic wants are greater than their income C. Necessities are of greater value than their luxuries D. Benefits from consuming products are greater than their costs
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quiz1summer2010 MACROECONOMICS - Print Version of Quiz1...

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