Econ: Topic 1- Fundamentals of Economics Quiz

Read the question and choose the best answer.

The clothing shown in the photograph is BEST described as an example of

• a need.

• a want.

• human capital.

• entrepreneurial risk-taking.

Why do you think there were long lines of cars in this photo from 1973?

• People liked to wait in lines in the 1970s.

• Due to a labor over-capacity, gas stations could not open.

• There was a scarcity of gas.

• There was a shortage of gas.

Identify the potential Factor of Production shown in this photo.

• physical capital

• land

• labor

• risk-taking entrepreneur

Which of the following is true about scarcity?

• Scarcity affects all societies.

• Scarcity exists only in poor countries.

• Scarce goods lead to lower prices.

• Scarcity of resources can be eliminated using sound economic policies.

Which of the following is an example of scarcity rather than shortage?

• Extremely hot temperatures lead to increased air-conditioner use and power outages.

• There aren't enough software engineers to fill all the job openings in Silicon Valley.

• Newly discovered Van Gogh paintings are put up for auction and sell for millions.

• During the holiday season, an outfitter runs out of skis.

What is the opportunity cost of going to college in the United States?

• no student loan debt

• high unemployment

• low unemployment

• significant student loan debt

What is Bob's opportunity cost if he decides to go out to eat with friends?

• the money spent on the dinner

• the money saved by not going out

• getting exercise

• having fun with friends

Why is the subject of the graph unable to produce any shoes when it grows 21 million tons of watermelons?

• Demand for shoes is limited.

• Resources are limited.

• The benefit is limited.

• Demand for watermelons is unlimited.

The point to the left of the curve (point d) on the graph above would indicate

• overutilization of the economy.

• underutilization of the economy.

• decreased watermelon production.

• decreased shoe production.

In the example shown here, what is the marginal cost of changing from two hours of studying to three hours of studying?

• losing an hour of sleep

• losing two hours of sleep

• changing from a B to a B+

• changing from a C to a B