Basics - Name: _ Date: _ 1. Scarcity in economics means: A)...

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Name: __________________________ Date: _____________ 1. Scarcity in economics means: A) not having sufficient resources to produce all the goods and services we want. B) the wants of people are limited. C) there must be poor people in rich countries. D) economists are clearly not doing their jobs. 2. Scarcity exists when: A) a choice must be made among two or more alternatives. B) individuals can have more of any good. C) individuals can have more of one good but only at the expense of another. D) a choice must be made among two or more alternatives and when individuals can have more of one good but only at the expense of another. 3. Which of the following statements is true? A) The concept of equilibrium requires that all individuals have an equal amount of income. B) If equilibrium in a market exists, then the price in that market will not fluctuate by more than 5%. C) If equilibrium in a market exists, then there will be no remaining opportunities for individuals to make themselves better off. D) Equilibrium in a market will exist when the number of buyers is equal to the number of sellers. 4. If the state government allocates additional spending on education, the opportunity cost is: A) zero. B) the dollar amount of the additional spending. C) only considered if additional taxes need to be raised to fund the spending. D) measured in terms of the alternative uses for that money. Page 1
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5. If disequilibrium exists in a market: A) it will continue unless there is government intervention. B) no individual would be better off doing something different. C) there are opportunities available to people to make themselves better off. D) it must be because the government has intervened in the market, resulting in the market's failure to reach equilibrium. 6. While buying refreshments for an upcoming party, you notice that a six-pack of Americana Beer costs $2 and a six-pack of Bavarian Beer costs $4. You buy the six- pack of Bavarian Beer although you wonder if maybe two six-packs of Americana Beer would have been a better choice. The opportunity cost of the Bavarian Beer is: A) the $4. B) a six-pack of Americana Beer. C) two six-packs of Americana Beer. D) the $4 and the six-pack of Americana Beer. 7. Microeconomics deals with:
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Basics - Name: _ Date: _ 1. Scarcity in economics means: A)...

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