05 Jun Question Sample Test Multiple Choice
Question
Sample Test
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
____ 1. When economists speak of scarcity, they are referring to the
a.
condition in which society is not employing all its resources in an efficient way.
b.
condition in which people’s wants outstrip the limited resources available to satisfy those wants.
c.
economic condition that exists in only very poor countries of the world.
d.
condition in which society produces too many frivolous goods and not enough socially desirable goods.
____ 2. Produced goods used as inputs for the production of other goods comprise the resource known as
a.
natural resources.
b.
services.
c.
capital.
d.
entrepreneurship.
____ 3. Some years ago, chemists at 3M Corporation were trying to create a super-strong glue. Somehow they got their molecules twisted and came up with one of the weakest glues ever made. But, rather than pouring it down the drain, they tried coating some paper with it. Voila! The “Post-It Note” was born. In this case, 3M was acting as
a.
a utility.
b.
a rationer.
c.
an entrepreneur.
d.
an abstraction.
____ 4. Choice is fundamentally a consequence of
a.
living in a world where there are both goods and bads.
b.
how wealthy one is.
c.
scarcity.
d.
opportunity cost.
____ 5. The opportunity cost of attending college is
a.
the money one spends on college tuition, books, and so forth.
b.
the highest valued alternative one forfeits to attend college.
c.
the least valued alternative one forfeits to attend college.
d.
equal to the salary one will earn when one graduates from college.
____ 6. It usually takes less time to buy a six-pack of 7-Up, a loaf of bread, and a half-gallon of ice cream at a small convenience store (such as a 7-Eleven) than at a large, full-service grocery store. Which of the following persons is most likely to buy these items at a convenience store?
a.
a person with high opportunity cost of time
b.
a person with low opportunity cost of time
c.
a person who is out of work
d.
There is not enough information to answer the question.
____ 7. The higher the opportunity cost of attending college,
a.
the more likely an individual will go to college.
b.
the more economics classes an individual will take at college.
c.
the fewer economics classes an individual will take at college.
d.
the less likely an individual will go to college.
____ 8. Which of the following best represents the fallacy of composition?
a.
What is true for one is false for all.
b.
What is good for one is bad for all.
c.
What is good (or true) for one is good (or true) for all.
d.
The more high-calorie food a person eats, the greater his or her weight will be,ceteris paribus.
____ 9. Ceteris paribus means
a.
one variable too many.
b.
the correct relationship specified.
c.
assuming economic motives.
d.
all other things held constant.
____ 10. Attempts to determine “what is” are part of __________ economics.
a.
positive
b.
normative
c.
positive and normative
d.
neither positive nor normative
____ 11. Microeconomics is the branch of economics that deals with
a.
highly aggregated markets or the entire economy.
b.
the production side of the economy, exclusively.
c.
the buying side of the economy, exclusively.
d.
human behavior and choices as they relate to relatively small units-an individual, a firm, an industry.
____ 12. Which of the following is a positive macroeconomics statement?
a.
The central bank should increase the nation’s money supply.
b.
The increase in the nation’s money supply helped push the nation’s unemployment rate down in the short run.
c.
Ford Motor Company’s new advertising campaign ended up hurting General Motors’ sales.
d.
The local government ought to spend more on recreational facilities.
____ 13. Which of the following is a positive microeconomics statement?
a.
The central bank should increase the nation’s money supply.
b.
The increase in the nation’s money supply helped push the nation’s unemployment rate down in the short run.
c.
Ford Motor Company’s new advertising campaign ended up hurting General Motors’s sales.
d.
The local government ought to spend more on recreational activities.
____ 14. Economists believe that people’s wants are
a.
finite.
b.
infinite.
c.
irrational.
d.
unimportant because needs are more important than wants.
____ 15. Opportunity cost is the value of
a.
the best forfeited alternative.
b.
the chosen alternative.
c.
a free good.
d.
an economic good.
____ 16. Which of the following would NOT be considered a macroeconomic topic?
a.
the reasons for a decline in the price of crude oil
b.
the cause of a downturn in the economy
c.
the effect of the government budget deficit on inflation
d.
the causes of inflation and unemployment
____ 17. If variable X goes down as variable Y goes down, then X and Y are
a.
directly related.
b.
negatively related.
c.
inversely related.
d.
independent.
____ 18. Which of the following illustrates the law of demand?
a.
Jeff buys more pens at $1 per pen than at $2 per pen, ceteris paribus.
b.
Sara buys more ice cream at $2 per half-gallon than at $1 per half gallon, ceteris paribus.
c.
Chris buys fewer trousers at $30 per pair than at $25 per pair, ceteris paribus.
d.
a, b, and c
e.
a and c
____ 19. One major reason for the law of demand is that
a.
one price changing requires at least one other price to change in the opposite direction.
b.
people substitute relatively lower-priced goods for relatively higher-priced goods.
c.
a higher price never reduces quantity demanded by enough to lower total revenue.
d.
people are willing to produce more units at a higher price.
____ 20. If an increase in income results in an increase in the demand for chicken, then
chicken is
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.