quiz_1_eco_201___52_ak[1] -...

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NORTHERN VIRGINIA COMMUNITY COLLEGE  LOUDOUN CAMPUS DIVISION OF NATURAL AND APPLIED SCIENCES PRINCIPLES OF MACROECONOMICS (ECO 201)   QUIZ 1 FALL 2007  NOTE: Number of Questions: 75 Multiple Choice Questions Duration: 90 minutes Value of each Question: 1 Point (Total Value: 75 Points) Please pace yourself in such a way that you are able to answer all questions. If you are not sure about the answer to a particular question, don’t get bogged down on that question, move on, and if you have time, come back to it later. Your objective should be to get the maximum points possible on the Quiz. Good Luck Bonnes Chances
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1. All economics questions and problems arise because a. political parties always disagree. b. people don’t work hard enough. c. the rich take too much and don’t leave enough for the poor. d. human wants exceed resources available. Answer: d 2. For Bill Gates, a founder of Microsoft, scarcity is a. not a concern because he has so much money. b. not a concern because he has many employees working for his company. c. a concern because time is a limited resource. d. a concern because there are a limited number of computer customers. Answer: c 3. Scarcity exists because a. people want too many goods and services. b. goods and services are not allocated fairly. c. human wants exceed the resources available to satisfy them. d. governments are not efficient at managing production. Answer: c 4. Microeconomics studies a. the aggregate economy. b. issues of national unemployment and prices. c. choices made by individuals and businesses. d. why the Federal Reserve changes the interest rate. Answer: c 5. Macroeconomics studies a. the aggregate effect of individuals’ choices on national and global economies. b. the individual choices made by individuals. c. how firms make profitable output decisions. d. None of the above answers are correct. Answer: a 6. Studying the aggregate effects on the national economy of the decisions of businesses, individuals, and the government is the subject matter of a. microeconomics. b. macroeconomics. c. government. d. scarcity economics. Answer: b
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7. The phrase “cost of living” refers to a. the periodic upward and downward movements in prices. b. the amount of time that individuals use to earn their income. c. living under costly circumstances. d. the number of dollars it takes to purchase the goods and service that achieve a given standard of living. Answer: d 8. A business cycle expansion occurs when a. production increases and the number of jobs decreases. b. prices increase and the number of jobs decreases. c. production and the number of jobs increase. d. prices and the number of jobs decrease. Answer: c
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quiz_1_eco_201___52_ak[1] -...

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