1) Economics is best defined asA) 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) 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 leisureB) a small shoe factory deciding how much leather to purchase for the next quarterʹs production needC) a multinational company deciding where to relocate its world headquarterD) All of the above answers are correct.3) Which of the following questions is a macroeconomic issue?A) How many more pounds of cookies will a consumer purchase if the price of cookiesdecreases?B) What effect would a cure for Mad Cow Disease have on the market for beef?C) What is the future growth prospect for an economy?D) How many workers should the owner of a business hire?4) The fact that wants cannot be fully satisfied with available resources reflects the definition ofA) the what tradeoff.B) scarcity.C) the big tradeoff.D) for whom to produce.5) Suppose the Gallo sisters, Ernestine and Julia, were not on speaking terms with one another. They each raised grapes and peanuts. Ernestine could increase her output of grapes by one bushel if she reduced her output of peanuts by two bushels and Julia could increase her output of grapes by one bushel if she reduced her output of peanuts by four bushels. According to this information, Ernestine has:A) a comparative advantage in the production of grapes.B) a comparative advantage in the production of both goods.C) a comparative advantage in the production of peanuts.D) an absolute advantage in the production of peanuts6) Factors of production are grouped into four categories:A) land, labor, capital, entrepreneurshipB) land, labor, capital, moneyC) land, capital, money, entrepreneurshipD) labor, capital, money, entrepreneurship7) An inefficient use of resources may be illustrated with a production possibility curve as: A) an inward shift of the production possibility curve.B) an outward shift of the production possibility curve.C) a point inside the production possibility curve.D) a point outside the production possibility curve.8) Which of the following statements is CORRECT?A) When both demand and supply increase, the quantity decreases and the price might rise, fall, or remain the same.B) When both demand and supply increase, the price rises and the quantity might increase,decrease, or remain the same.C) When both demand and supply decrease, the quantity increases and the price might rise, fall, or remain the same.D) When both demand and supply decrease, the quantity decreases and the price might rise, fall, or remain the same.9) Which of the following activities, if any, accurately describes the opportunity cost of attending an economics class? A) The cost of the textbook used in the course.B) The value of the time that it takes to get to campus every day.C) The sleep or other activity that could have been enjoyed instead.D) The time spent in enrolling in the class at the start of the term.10) Which of the following is consistent with the law of demand?A) An increase in the price of a DVD causes an increase in the quantity of DVDs demanded.B) An increase in the price of a soda causes a decrease in the quantity of soda demanded.C) A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.D) A decrease in the price of juice causes no change in the quantity of juice demanded.

Question

1) Economics is best defined asA) 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) 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 leisureB) a small shoe factory deciding how much leather to purchase for the next quarterʹs    production needC) a multinational company deciding where to relocate its world headquarterD) All of the above answers are correct.3) Which of the following questions is a macroeconomic issue?A) How many more pounds of cookies will a consumer purchase if the price of cookiesdecreases?B) What effect would a cure for Mad Cow Disease have on the market for beef?C) What is the future growth prospect for an economy?D) How many workers should the owner of a business hire?4) The fact that wants cannot be fully satisfied with available resources reflects the definition ofA) the what tradeoff.B) scarcity.C) the big tradeoff.D) for whom to produce.5) Suppose the Gallo sisters, Ernestine and Julia, were not on speaking terms with one another.  They each raised grapes and peanuts. Ernestine could increase her output of grapes by one bushel if she reduced her output of peanuts by two bushels and Julia could increase her output of grapes by one bushel if she reduced her output of peanuts by four bushels. According to this information, Ernestine has:A) a comparative advantage in the production of grapes.B) a comparative advantage in the production of both goods.C) a comparative advantage in the production of peanuts.D) an absolute advantage in the production of peanuts6) Factors of production are grouped into four categories:A) land, labor, capital, entrepreneurshipB) land, labor, capital, moneyC) land, capital, money, entrepreneurshipD) labor, capital, money, entrepreneurship7) An inefficient use of resources may be illustrated with a production possibility curve as:       ​A) an inward shift of the production possibility curve.B) an outward shift of the production possibility curve.C) a point inside the production possibility curve.D) a point outside the production possibility curve.8) Which of the following statements is CORRECT?A) When both demand and supply increase, the quantity decreases and the price might rise,    fall, or remain the same.B) When both demand and supply increase, the price rises and the quantity might increase,decrease, or remain the same.C) When both demand and supply decrease, the quantity increases and the price might rise, fall, or remain the same.D) When both demand and supply decrease, the quantity decreases and the price might     rise, fall, or remain the same.9) Which of the following activities, if any, accurately describes the opportunity cost of attending an economics class?  A) The cost of the textbook used in the course.B) The value of the time that it takes to get to campus every day.C) The sleep or other activity that could have been enjoyed instead.D) The time spent in enrolling in the class at the start of the term.10) Which of the following is consistent with the law of demand?A) An increase in the price of a DVD causes an increase in the quantity of DVDs   demanded.B) An increase in the price of a soda causes a decrease in the quantity of soda demanded.C) A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.D) A decrease in the price of juice causes no change in the quantity of juice demanded.

Accepted Answer

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) 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.