Question 1

Opportunity costs do not arise in conjunction with political decisions.

Accepted Answer

A) True 
 B)False

Question 2

Economics is the study of how to invest wisely.

Accepted Answer

A) True 
 B)False

Question 3

Every choice involves an opportunity cost.

Accepted Answer

A) True 
 B)False

Question 4

Figure 1.3
-If the economy moves from point B to point C in Figure 1.3, the output of housewares will rise by 900 units at an opportunity cost of _________ units of consumer electronics.

Accepted Answer

A)   3300
B)   2300
C)   2500
D)   1500E) A) and C)
F) B) and C)

Question 5

Figure 1.2
-What is happening if the economy moves from point D to point C in Figure 2?

Accepted Answer

A)   Resources that were initially being used to produce military goods are now being used to produce civilian goods.
B)   Resources that were initially being used to produce civilian goods are now being used to produce military goods.
C)   Previously unemployed resources are now being used to produce more civilian goods.
D)   Previously unemployed resources are now being used to produce more military goods.E) C) and D)
F) None of the above

Question 6

"Using economics" means

Accepted Answer

A)   saving money.
B)   eliminating scarcity.
C)   ignoring opportunity costs.
D)   making choices.E) All of the above
F) C) and D)

Question 7

We live with unlimited wants in a world of _________ resources.

Accepted Answer

The answer of We live with unlimited wants in a...

Question 8

Economic theory asserts that human behavior is always unpredictable.

Accepted Answer

A) True 
 B)False

Question 9

Figure 1.2
-What is happening if the economy moves from point A to point D in Figure 1.2?

Accepted Answer

A)   Resources that were initially being used to produce military goods are now being used to produce civilian goods.
B)   Resources that were initially being used to produce civilian goods are now being used to produce military goods.
C)   Previously unemployed resources are now being used to produce more civilian goods.
D)   Previously unemployed resources are now being used to produce more military goods.E) B) and D)
F) B) and C)

Question 10

Economics is best defined as the

Accepted Answer

A)   study of self-interest.
B)   study of how people make choices to satisfy their wants.
C)   study of how government can most efficiently raise funds by taxation.
D)   process by which goods are sold in free markets.E) A) and D)
F) None of the above

Question 11

The goal of economic theory is to

Accepted Answer

A)   help people make wise investments.
B)   advise businesses on how to market their products well.
C)   advise businesses on how to make good products.
D)   predict how people will react to changes in the circumstances surrounding how they go about satisfying their wants.E) A) and B)
F) A) and C)

Question 12

Cost is always a _________ opportunity.

Accepted Answer

The answer of Cost is always a _________ opportunity....

Question 13

The opportunity cost of making a decision is the _________ forgone alternative.

Accepted Answer

The answer of The opportunity cost of making a decision...

Question 14

Does the assumption of rational self-interest imply that society would be better off if more decisions about what to consume were made by government officials, rather than by individuals themselves?

Accepted Answer

A) True 
 B)False

Question 15

Figure 1.3
-What would be TRUE of a movement from point C to point B in Figure 1.3?

Accepted Answer

A)   The output of housewares would fall by 1200 units and the output of consumer electronics would increase by 800 units.
B)   The output of housewares would fall by 900 units and the output of consumer electronics would increase by 2500 units.
C)   The output of housewares would fall by 900 units and the output of consumer electronics would increase by 1500 units.
D)   The output of housewares would fall by 900 units and the output of consumer electronics would increase by 1000 units.E) None of the above
F) A) and C)

Question 16

Figure 1.3
-What would be TRUE of a movement from point A to point C in Figure 1.3?

Accepted Answer

A)   There would be a gain of 3900 units of housewares at the cost of 3300 units of consumer electronics.
B)   There would be a gain of 3900 units of housewares at the cost of 800 units of consumer electronics.
C)   There would be a gain of 2100 units of housewares at the cost of 3300 units of consumer electronics.
D)   There would be a gain of 2100 units of housewares at the cost of 2300 units of consumer electronics.E) All of the above
F) None of the above

Question 17

Opportunity costs do not arise in conjunction with health care decisions.

Accepted Answer

A) True 
 B)False

Question 18

Suppose you have four choices-go to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is

Accepted Answer

A)   the value of the book not read.
B)   the value of the television program not watched.
C)   the value of the concert that you didn't attend.
D)   the value of the activity that you would have selected if you hadn't gone to the movie.E) A) and B)
F) A) and C)

Question 19

Moving from point to point along the production possibilities curve means that the economy is trading off production of one good for production of another.

Accepted Answer

A) True 
 B)False

Question 20

By devoting more resources to military uses during the war against Iraq, the United States had to take _________ away from civilian uses.

Accepted Answer

The answer of By devoting more resources to military uses...

Exam 1: Economics and the World of Scarcity

By devoting more resources to military uses during the war against Iraq, the United States had to take _________ away from civilian uses.

Correct AnswerverifiedShow Answer

The opportunity cost of making a decision is the _________ forgone alternative.

Correct AnswerverifiedShow Answer

Figure 1.2 -What is happening if the economy moves from point A to point D in Figure 1.2?

Correct AnswerverifiedShow Answer

Economic theory asserts that human behavior is always unpredictable.

Correct AnswerverifiedShow Answer

The goal of economic theory is to

Correct AnswerverifiedShow Answer

Figure 1.3 -What would be TRUE of a movement from point C to point B in Figure 1.3?

Correct AnswerverifiedShow Answer

Opportunity costs do not arise in conjunction with health care decisions.

Correct AnswerverifiedShow Answer

Cost is always a _________ opportunity.

Correct AnswerverifiedShow Answer

Economics is the study of how to invest wisely.

Correct AnswerverifiedShow Answer

Opportunity costs do not arise in conjunction with political decisions.

Correct AnswerverifiedShow Answer

"Using economics" means

Correct AnswerverifiedShow Answer

Figure 1.3 -What would be TRUE of a movement from point A to point C in Figure 1.3?

Correct AnswerverifiedShow Answer

Moving from point to point along the production possibilities curve means that the economy is trading off production of one good for production of another.

Correct AnswerverifiedShow Answer

We live with unlimited wants in a world of _________ resources.

Correct AnswerverifiedShow Answer

Suppose you have four choices-go to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is

Correct AnswerverifiedShow Answer

Every choice involves an opportunity cost.

Correct AnswerverifiedShow Answer

Does the assumption of rational self-interest imply that society would be better off if more decisions about what to consume were made by government officials, rather than by individuals themselves?

Correct AnswerverifiedShow Answer

Figure 1.2 -What is happening if the economy moves from point D to point C in Figure 2?

Correct AnswerverifiedShow Answer

Economics is best defined as the

Correct AnswerverifiedShow Answer

Figure 1.3 -If the economy moves from point B to point C in Figure 1.3, the output of housewares will rise by 900 units at an opportunity cost of _________ units of consumer electronics.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified