PRACTICE 1 - PRACTICE 1: LIMITS, CHOICES, AND ALTERNATIVES...

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PRACTICE 1: LIMITS, CHOICES, AND ALTERNATIVES Student: ___________________________________________________________________________ 1. Economics may best be defined as the: A. interaction between macro and micro considerations. B. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity. C. empirical testing of value judgments through the use of logic. D. use of policy to refute facts and hypotheses. 2. The scarcity problem: A. persists only because countries have failed to achieve continuous full employment. B. persists because economic wants exceed available productive resources. C. has been solved in all industrialized nations. D. has been eliminated in affluent societies such as the United States and Canada. 3. In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of: A. scarcity and opportunity costs. B. money and real capital. C. complementary economic goals. D. full production. 4. You should decide to go to a movie: A. if the marginal cost of the movie exceeds its marginal benefit. B. if the marginal benefit of the movie exceeds its marginal cost.
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PRACTICE 1 - PRACTICE 1: LIMITS, CHOICES, AND ALTERNATIVES...

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