1B03 2009 QUIZ 1 - QUIZ 1 VERSION 1 Multiple Choice...

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QUIZ 1 VERSION 1 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Both households and societies face many decisions because a. resources are scarce. b. populations may increase or decrease over time. c. wages for households and therefore society fluctuate with business cycles. d. people, by nature, tend to disagree. ____ 2. For society, a good is not scarce if a. at least one individual in society can obtain all he or she wants of the good. b. firms are producing at full capacity. c. all members of society can have all they want of it. d. those who have enough income can buy all they want of the good. ____ 3. Economics is defined as the study of a. business. b. how society manages its scarce resources. c. central planning. d. government regulation. ____ 4. The adage, "There is no such thing as a free lunch," is used to illustrate the concept of a. tradeoffs. b. scarcity. c. productivity. d. efficiency. ____ 5. Efficiency means that a. society is conserving resources in order to save them for the future. b. society's goods and services are distributed fairly among society's members. c. society has lessened its dependence on foreign energy sources. d. society is getting the most it can from its scarce resources. ____ 6. What you give up to obtain an item is called your a. opportunity cost. b. explicit cost. c. true cost. d. direct cost. ____ 7. The circular-flow diagram is a a. visual model of how the economy is organized. b. mathematical model of how the economy works. c. model that shows the effects of government on the economy. d. visual model of the relationship among money, prices, and businesses.
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____ 8. In the circular-flow diagram, a. firms are sellers in the resource market and the product market. b. firms are buyers in the product market. c. households are sellers in the resource market. d. spending on goods and services flows from firms to households. ____ 9. Which of the following would NOT be considered a factor of production? a. labour b. land c. capital d. money Figure 1 ____ 10. Refer to Figure 1 . Which arrow shows the flow of goods and services? a. A b. B c. C d. D
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QUIZ 1 VERSION 2 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Economics deals primarily with the concept of a. scarcity. b. poverty. c. change. d. power. ____ 2. Which product would be considered scarce? a. Nike shoes b. Monet paintings c. 1-carat diamonds d. All of the above are correct. ____
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This note was uploaded on 03/02/2011 for the course ECON 1B03 taught by Professor Hannahholmes during the Spring '08 term at McMaster University.

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1B03 2009 QUIZ 1 - QUIZ 1 VERSION 1 Multiple Choice...

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