Econ 1st Sem Exam 24 part 1

What is the primary focus of economics as a science?

• Wealth accumulation
• Market prediction
• Scarcity and resource allocation
• Government policy

Which of the following is NOT typically considered a scarce resource in economics?

• Time
• Money
• Air
• Attention

Which of the following is an example of a choice "at the margin"?

• Deciding whether to go to college or not
• Choosing between two different career paths
• Deciding whether to study for one more hour
• Selecting a major in university

What does the economic concept of "ceteris paribus" mean?

• All things being equal
• Cause and effect
• Supply and demand
• Profit maximization

Which of the following is NOT considered one of the four main factors of production?

• Land
• Labor
• Capital
• Technology

In the context of factors of production, what does "enterprise" refer to?

• A large corporation
• The risk-taking and organizing factor
• The physical location of a business
• The tools used in production

Which of the following is an example of "human capital"?

• A factory building
• A company's stock of raw materials
• An employee's education and skills
• Money in a business bank account

What does a Production Possibilities Curve (PPC) represent?

• The demand for two different products
• The maximum possible production combinations of two goods
• The profit potential of a company
• The relationship between price and quantity supplied

What happens to a PPC if there's an improvement in technology?

• It shifts inward
• It becomes steeper
• It shifts outward
• It remains unchanged

What typically happens to the demand for a normal good when household income increases?

• Demand decreases
• Demand increases
• Demand remains unchanged
• Demand becomes more elastic