ECON QC 1 (2019)

An implicit opportunity cost of attending college is:

• tuition

• books

• living expenses

• income from forgone employment

• living expenses

If you pay $5,000 a year in tuition and give up $20,000 a year of income to attend college, then the yearly opportunity cost of college is:

• $5,000 of tuition

• B: $20,000 of foregone income

• C: $15,000, the difference between tuition and foregone income

• D: at least $25,000 of tuition and foregone income

• E: less than $20,000 and more than $5,000

The basic economic problem of all economies is essentially one of deciding how to make the best use of

• A: unlimited resources to satisfy unlimited wants

• B: limited resources to satisfy unlimited wants

• C: unlimited resources to satisfy limited wants

• D: limited resources to satisfy limited wants

• E: limited resources to provide public goods

Economic scarcity arises from

• limited resources and limitless wants

• inefficient production

• exploration

• limited wants and limitless resources

• exploitation

Fundamental economic problems basically arise from

• our wants exceeding our scarce resources

• the fact that society has more than it needs

• the unequal distribution of income

• turmoil in the stock market

• our scarce resources exceeding our wants

opportunity cost is best defined as

• how much money is paid for something, taking inflation into account

• how much money is paid for something

• How much money the opportunity costs you

• the highest-valued alternative that is given up to get something

• How much money the item cost you

The study of the decisions of individual units in the economy is known as

• macroeconomics

• ceteris paribus study

• microeconomics

• the study of incentives

• the study of captial

The branch of economics that deals with the analysis of the whole economy is called

• macroeconomics

• ceteris paribus study

• microeconomics

• the study of incentives

• marginal analysis

To decide whether to go to the beach for spring break, you should

• not make the fallacy of composition

• unscramble cause and effect

• not make the post hoc fallacy

• compare marginal cost to the marginal benefit of taking the trip

• create more resources to make it happen

The production possibilities frontier represents

• combinations of goods and services among which consumers are indifferet

• the maximum rate of growth of capital and labor in a country

• the maximum levels of production that can be attained

• the maximum amount of labor and capital available to society

• the western frontier, or outter space