Introduction To Economics

Each day you have $5 for lunch. Today, you decide to save $2 and buy the chicken salad tomorrow for 6.50. How is the money being used in this case?

• As a unit of accounting

• As a store of value

• As a medium of exchange

• As an indicator of debt

As a buyer, which market structure would be worst for you?

• Pure competition

• Oligopoly

• Monopoly

• Monopolistic Competiton

What is meant by scarcity?

• Limited resources and unlimited wants and needs

• Unlimited resources and unlimited wants and needs

• Unlimited resources and limited wants and needs

• Limited resources and unlimited wants and needs

Which is NOT a function of money?

• As an indicator of debt

• As a store of value

• As a unit of accounting

• As a medium of exchange

When money is used to compare the value of different products it is used:

• As a store of value

• As a medium of exchange

• As an indicator of debt

• As a unit of accounting

Which concept is NOT basic to definition of economics?

• Scarcity

• Rational Self-Interest

• Choice

• Bartering

Competition among BUYERS generally means:

• Higher product prices and fewer profits for sellers

• Higher product prices and more profits for sellers

• Lower product prices and fewer profits for sellers

• Lower product prices and more profits for sellers

Which of the following is NOT a part of pure competition?

• No seller or buyer has control of the market

• Buyers are familiar with the product

• Barriers to market entry exist

• Many buyers and sellers

What is the best interest of rational self-interest choice?

• A balanced choice that helps the person and others

• A quick choice that helps the person making the choice

• A sensible choice that best serves the person making the choice

Which type of market has few major sellers, where a price action by one seller can cause the other sellers to follow?

• Pure competition

• Monopoly

• Oligopoly