Economics Quiz

What does the scarcity-forces-tradeoffs principle suggest about time?

• Time is unlimited

• Time is scarce and involves tradeoffs

• Time has no value

• Time does not affect choices

What might you lose out on if you sleep an hour longer on a school day?

• More energy

• Study time

• Needed rest

• Benefits

What does the incentives-matter principle state?

• People respond to incentives in generally predictable ways

• People ignore incentives

• Incentives have no effect on behavior

• Incentives are always financial

Why do people stand in line for hours to purchase the newest cell phone according to the text?

• Because of a powerful incentive

• Because they have nothing else to do

• Because the phone is free

• Because they are forced to

What does the text suggest about the predictability of people's responses to incentives?

• People's responses to incentives are generally predictable

• People's responses to incentives are random

• People's responses to incentives are always financial

• People's responses to incentives are always the same

What principle tells us that decisions made today have consequences not only for today but also in the future?

• Immediate-effects principle

• Future-consequences-count principle

• Direct-consequences principle

• Short-term-effects principle

Scarcity arises because all societies have

• Unlimited wants and needs with limited resources to satisfy those wants and needs

• unlimited productive resources to satisfy limited wants

• limited needs and unlimited wants

• unlimited needs and limited wants

Who has to make difficult choices due to scarcity?

• Only businesses

• Only governments

• Only individuals

• Individuals, Businesses, and Governments

the study of the behavior of the economy as a whole

• microeconomics

• competition

• macroeconomics

• statistics

considered the father of the modern study of economics

• Alexis de Tocqueville

• Sam Adams

• Adam Smith

• Mr. Long