Econ Test #1

Microeconomics is the study of the economy as a whole while Macroeconomics is the study of individual units of the economy.

• True

• False

The 3 basic economic questions that every society must ask itself are: Wat are we going to produce? How are we going to produce it? For whom are we going to produce it?

• True

• False

One of the key advantages of a sole proprietorship type of business is the ease of raising capital (money).

• True

• False

Gasoline is an elastic good.

• True

• False

If OPEC cuts oil supply, the supply curve will shift to the right.

• True

• False

Alan Greenspan is our current Federal Reserve Chairman.

• True

• False

North Korea is a capitalistic economy.

• True

• False

Water is an example of a need.

• True

• False

China's economy could best be described as mixed.

• True

• False

As price rises, Quantity Demanded decreases.

• True

• False