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Economics Practice

Economics Practice - Economics of Production 11 3:10 PM...

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3/2/12 3:10 PM Economics of Production 11 Page 1 of 47 http://econweb.rutgers.edu/sani/cook/121/121-sample%20test.htm Prin & App Microeconomics 11:373:121 Practice Test Questions Chapter 1 1) An incentive A) could be a reward but could not be a penalty. B) could be a penalty but could not be a reward. C) could be either a reward or a penalty. D) is the opposite of a tradeoff. 2) Scarcity requires that people must 3) Microeconomics focuses on all of the following EXCEPT 4) Studying the determination of prices in individual markets is primarily a concern of 5) When an economy produces more houses and fewer typewriters, it is answering the ________ question. A) "what" B) "how" C) "where" D) "for whom" 6) Entrepreneurs do all of the following EXCEPT 7) Which of the following is NOT a factor of production?
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3/2/12 3:10 PM Economics of Production 11 Page 2 of 47 http://econweb.rutgers.edu/sani/cook/121/121-sample%20test.htm 8) When a university decides to add to the football stadium instead of adding to the baseball stadium, it faces the 9) The term used to emphasize that making choices in the face of scarcity involves a cost is A) substitution cost. B) opportunity cost. C) utility cost. D) accounting cost. 10) The opportunity cost of something you decide to get is 11) During the summer you have made the decision to attend summer school, which precludes you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000, books and supplies cost $300, and room and board cost $1,000. The opportunity cost of attending summer school is
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