Economics Final Review Part 1

Which of the following is a topic covered in microeconomics?

• inflation

• the causes of an economic recession

• the effect of a price increase on a specific good

• unemployment rates

Which of the following is covered in macroeconomics?

• the supply of a specific good

• the job market for first-year teachers

• unemployment rates

• A and B

Which of the following is a responsibility of consumers?

• weighing options

• reading information about products before purchasing

• searching for the store with the lowest price

• A, B, and C

Which of the following is an example of a service?

• changing a tire

• a diamond ring

• a microwave oven

• B and C

Which of the following is NOT an example of a need?

• clothing

• food

• water

• college education

You know that you have two options to keep yourself busy on a Friday night. One choice is to study for a test next week, while the other is to go to a basketball game. Which of the following statements is TRUE regarding the opportunity cost?

• The opportunity cost of studying for your test is the time spent attending the game.

• The opportunity cost of attending the basketball game is the time spent studying for your test.

• There is no opportunity cost associated with either event.

• both A and B

The sum of a population's skills, abilities, health, knowledge, and motivation is called

• productivity.

• labor.

• wealth.

• human capital.

Wealth includes all of the following EXCEPT

• goods that have utility.

• goods that can be transferred.

• goods that are tangible.

• services.

Refer to the graph above. Why can't the country above produce at point d on the production possibilities curve?

• It does not have enough resources to do so.

• It has too many resources to do so.

• It does not have the proper funding to do so.

• none of the above

Surpluses result from an inability to produce unlimited wants.

• True

• False