1.The most fundamental economic problem is________.
A.Scarcity
B.Security
C.European countries buy more goods from foreigners than
supply to foreigners
D.Health
Utility
It turned out that for something to have value, it must
also have utility, or the capacity to be useful and
provide satisfaction.
.
7. The marginal benefit of consuming a good is
(A) the change in average utility that results from consuming one
more unit of the good
(B) the same as the total benefit
(C) equal to the marginal cost of the good
(D) the change in total expenditures as a result of buying one
more unit of the good
(E) the maximum amount a consumer is willing to pay for one
more unit of the good
2. A student decides that, having already spent three hours studying for an exam,
she should spend one more hour studying for the same exam. Which of the
following is most likely true?
A. The marginal benefit of the fourth hour is at least as great as the marginal cost of
the fourth hour.
B. The marginal benefit of the fourth hour is certainly less than the marginal cost of
the fourth hour
C. The marginal cost of the third hour was likely greater than the marginal cost of the
fourth hour.
D. The marginal benefit of the third hour was less than the marginal cost of the third
hour
7
The branch of economics concernedwith how individuals make decisions and how
these decisions interact is called microeconomics
Microeconomics focuses on choices made by individuals, households, or
firms—the smaller parts that make up the economy as a whole.
Macroeconomics focuses on the bigger picture—the overall ups and downs of the
economy. When you study macroeconomics, you learn how economists explain
these fluctuations and how governments can use economic policy to minimize the
damage they cause.
Macroeconomics focuses on economic aggregates—economic measures
such as the unemployment rate, the inflation rate, and gross domestic product—
that summarize data across many different markets.
3. The study of determining the prices in individual markets is
called__________
A. Microeconomics
B. Negative economics
C. Positive economics
D. Macroeconomics
4. Which of the following is a macroeconomic problem?
A. The reasons for the increase in average prices
B. What do plumbers earn more than janitors
C. Whether the army should buy more tanks or more missiles
D. The reasons for the increase in the price of orange juice
5. Microeconomics includes all of the following EXCEPT.
A. The effect of increasing the money supply on inflation
B. The purchasing decisions of an individual consumer
C. The effect of an increase in cigarette tax on cigarette sales
D. The hiring decisions a firm makes
6. Macroeconomic issues include:
A. Total employment nationwide
B. The impact of government regulation on markets
C. Studying what factors affect the price and quantity of automobiles
D. Studying the regulation of wages and production costs in the software
industry
7. Which of the given options would be studied in a microeconomics
course?
A. Impact of rental roofs on the housing supply
B. How an increase in the tax rate affects the overall performance
C. Comparison of inflation rates between countries
D. How a trade agreement between the United States and Mexico affects both
nations’ unemployment rates
8. Which of the following is a microeconomic problem?
A. The reasons Alex is buying less orange juice
B. The reasons why average prices are falling
C. The reason why overall employment may fall
D. The impact of the government budget deficit on inflation
9. Keynesian economics is primarily focused
A. National income
B. Company balance
C. Resource allocation
D. All of the above
Which of the following describes a factor of production that is not fully
scarce and that can be used simultaneously in the production of more
than one good ？
(A)Machines that can produce both clothing and bedsheets
(B)Unskilled labor needed to produce all goods
(C)Basic knowledge that enhances the organization of all manufacturing
assembly lines
(D)Land that is cultivated for two crops by more than one farmer
(E)Labor that has received enhanced training in assembly-line work
Assume there are two goods in a market economy. The amount of each
good produced is determined by
A)buyers and sellers' interactions in the market for each good
B)a central planning agency
C)the desires of households only
D)each citizen's minimum needs for survival
E)popular voting with one vote per citizen
Which of the following is the defining characteristic of a capitalistic
economy?
A. Well functioning capital markets
B. Private ownership and protection of property rights
C. Fair distribution of income and low income taxes
D. Equality of opportunity
E. Efficient allocation of resources
Which of the following statements describes an economy confronting
scarcity?
A)If more of one good is produced, less of another good must be
produced.
B)An economy can produce a limitless amount of all goods.
C)All individuals are able to satisfy their consumption desires.
D)Scarcity is eliminated by government provision of goods.
E)Scarcity only exists as a problem when there is more than one
good to produce.
The allocation of resources in a market economy is described by which of
the following statements?
I.The government decides which goods will be produced and which
consumers will receive them.
ll. Buyers and sellers exchange goods and services on a voluntary basis.
ll. Prices and costs help producers decide whether they are producing
too little or too much of a good.
(A) Ionly.
(B) lI only.
（ C) ll only.
（ D) I and ll only.
（ E ） II and lIl only.
