Multiple Choice 2009 Chapter 1-4

Multiple Choice 2009 Chapter 1-4 - Multiple Choice 2009...

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Multiple Choice 2009 Chapter 1 1.Economics is best defined as a. how people make money and profits in the stock market. b. making choices from an unlimited supply of goods and services. c. making choices with unlimited wants but facing a scarcity of resources. d. controlling a budget for a household. 2. The study of economics a. focuses mainly on individual consumers b. arises from the fact that our wants exceed available resources c. recognizes that scarcity does not affect rich nations. d. deals mainly with microeconomics. 3. In part, microeconomics is concerned with a. how a business firm decides upon the amount it produces and the price it sets. b. changes in the economy’s total output of goods and services over long periods of time. c. factors that explain changes in the unemployment rate over time. d. the Federal Reserve’s policy decisions. 4. Which of the following is an example of a microeconomic decision? a. an individual deciding how to allocate the time he or she has for work and leisure b. a small shoe factory deciding how much leather to purchase for the next quarter’s production need c. a multinational company deciding where to relocate its world headquarter d. all of the above answers are correct 5. Which of the following questions is a topic that would be studied by microeconomics? a. why did production and the number of jobs shrink in 2001? b. Will the current budget deficit affect the well-being of the next generation? c. How will a lower price of digital cameras affect the quantity of cameras sold? d. what is the current unemployment rate in the United States? 6. Over the last 60 years, as a proportion of total production, the U. S. economy has produced more a. goods. b. agricultural products. c. services d. goods and services
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7. The largest part of what the United States produces today is _____ such as _____. a. goods; food and electronic equipment b. goods; education and entertainment c. services; trade and health care d. services; textbooks and computers 8. When a farmer decides to harvest oranges by huge machines instead of by migrant workers, the farmer is answering the ______ question. a. “how” b. “scarcity” c. “why” d. “what” 9. Which of the following are considered factors of production used to produce goods and services? I. Land II. Labor III. Capital IV. Entrepreneurship a. I and II only b. I and III only c. I, II and III only d. I, II, III, and IV 10. What are the four categories into which factors of production are grouped? a. profit, wages, rent, and interest b. land, labor, capital, and entrepreneurship c. capital, human capital, land, and labor d. entrepreneurship, profit, labor, and wages 11. One topic of study for a microeconomist would be the a. factors that lead to inflation b. factors that affect aggregate unemployment c. effects an increase in the price of gasoline has on an individual d. effects of an increase in government spending on the nation’s production.
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12. In part, microeconomics is concerned with the study of
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Multiple Choice 2009 Chapter 1-4 - Multiple Choice 2009...

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