2020 -- Quiz 1 - ECO 2020 (902) 11656 State University...

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Wayne State University Instructor: Jinghua Huang QUIZ 1 Fall 2011 Name: __________________________________________________ Date: ___________________ Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Approximately what percentage of the world's economies experience scarcity? a. 25% b. 50% c. 75% d. 100% ____ 2. An important implication of scarcity is that a. it inhibits economic interaction. b. people are not able to use all the available resources. c. people must make a choice. d. people will always be poor. ____ 3. Guns and butter are used to represent the classic societal tradeoff between spending on a. durable and nondurable goods. b. imports and exports. c. national defense and consumer goods. d. law enforcement and agriculture. ____ 4. The opportunity cost of a choice is the a. cost associated with making a choice. b. value of the next best activity not chosen. c. fair market price of whatever is chosen. d. amount paid to purchase what is chosen. ____ 5. Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Op- tion B. The opportunity cost of this decision is a. the value to Maurice of the option he would have chosen had Option B not been available. b.
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This note was uploaded on 03/11/2012 for the course ECO 2020 taught by Professor Huang during the Winter '12 term at Wayne State University.

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2020 -- Quiz 1 - ECO 2020 (902) 11656 State University...

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