Econ Quiz March 2nd, 2023 - Fundamental Economic Concepts

Economics is MOST concerned with the tension between

• self-interest and altruism
• consumption and savings
• wants and resources
• labor and capital
• efficiency and equality

Scarcity implies

• gains from trade
• Pareto efficiency
• rationality
• inefficient markets
• trade-offs

Opportunity cost could be BEST described as the

• monetary price paid
• incremental benefit received from an action
• utility sum of all possible actions
• maximum willingness to pay
• value of the next best alternative

Which of the following costs are LEAST likely to be considered part of the cost of college?

• tuition
• room and board
• university fees
• foregone labor income
• books

If consumers select the action that produces the greatest benefit, they are said to be

• benevolent
• efficient
• cost-minimizers
• rational
• practical

Gains from trade arise MOST directly from different

• trade-offs
• opportunity costs
• beliefs
• wants
• wealth levels

Sophie can either babysit for $10, mow the lawn for $15, or drive her brother to soccer practice for $12. What is Sophie’s opportunity cost if she chooses to mow the lawn?

• 5

• 10

• 15

• 12

• 22

Which of the following issues BEST represents the concept of scarcity?

• Individuals must pay to do the things they like.
• Individuals choose to specialize in the things they do best.
• Individuals have twenty-four hours in a day.
• Individuals differ in their abilities and resources.
• Individuals can only perform one activity at any given time.

The number of items in an average supermarket is CLOSEST to

• 30000
• 115000
• 370000
• 10000
• 75000

What MUST be true if two consumers voluntarily trade with each other?

• The goods being traded are indivisible.
• The exchange is Pareto efficient.
• They have similar resources.
• They have the same opportunity costs.
• The benefits outweigh the costs for both people.