Econ quiz 1 - ♣ Money wages d A coal mine e An offshore oil well 4 Which of the following statements regarding the basic economic problem of

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Georgia State University Principles of Microeconomics, Econ 2106 QUIZ # 1 KEY Five multiple choice questions, two points each, please circle the best answer . 1. Economics is the social science that examines how society attempts to a. fight unemployment and inflation while achieving economic growth. b. organize business and earn profits for firms subject to government control. c. allocate resources among the governmental, industrial, and international sectors of the economy. produce and distribute goods and services in world of scarce re- sources . e. form social groups in order to coerce individuals into doing what’s best for the group. 2. A positive (nonzero and non-negative) price for a good means the good is scarce . b. there is a shortage. c. the good is in surplus. d. only the wealthy will purchase the good. e. none of the above. 3. Which of the following is not considered to be a factor of production? a. A university professor. b. A hammer in a carpenter’s shop.
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Unformatted text preview: ♣ Money wages . d. A coal mine. e. An offshore oil well. 4. Which of the following statements regarding the basic economic problem of scarcity is correct? a. The problem only exists in countries that are not highly industrialized. b. The problem will quite likely disappear as production increases. c. The problem will be sure to disappear with the growth of technology. ♠ The problem will exist as long as resources are available in limited amounts . e. The problem will disappear as a person’s income increases. 5. Rational self-interest implies that a. individuals are selfish. b. individuals have studied economics. c. all other variables under investigation are held constant. d. individuals consider themselves better off when they take actions that make others worse off. ♣ individuals make choices that provide them with the greatest satis-faction . 1...
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This note was uploaded on 01/18/2011 for the course ECON 11853 taught by Professor Brianallenhunt during the Fall '10 term at Georgia State University, Atlanta.

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