Micro Unit 1

Which of the following is an example of capital?

• a cheeseburger dinner

• a construction worker

• a factory

• an acre of farmland

• petroleum

Which of the following is not an example of resource scarcity?

• there is a finite amount of petroleum in the world

• farming communities are experiencing droughts

• there are not enough physicians to satisfy all desires

• cassette tapes are no longer being produced

• teachers would like to have more instructional technology in the classroom

Suppose that you prefer reading a book you already own to watching videos and that you prefer watching videos to listening to music. If these are your only three choices, what is the opportunity cost of reading?

• watching videos and listening to music

• watching videos

• listening to music

• sleeping

• the price of the book

Which of the following statements is normative?

• the price of gasoline is rising

• the price of gasoline is too high

• gas prices are expected to fall in the near future

• cars can run on gasoline, electricity, or diesel fuel

• when the price of gasoline rises, drivers buy less gasoline

Which of the following questions is studied in microeconomics?

• Should I go to college or get a job after I graduate?

• What government policies should be adopted to promote employment in the economy?

• How many people are employed in the economy this year?

• Has the overall level of prices in the economy increased or decreased?

• What determines the overall salary level paid to workers in a given year?

An activity should certainly continue of the

• marginal benefit is positive

• marginal cost is negative

• marginal costs exceed the marginal benefit

• marginal benefit equals the marginal cost

• marginal benefit exceeds the marginal cost

All opportunity costs are

• nonmonetary

• forgone monetary payments

• losses of time

• values of alternatives that must be given up

• related to educational opportunities

The system that coordinates a society's choices about production and consumption is in every case its

• central authority

• market

• government

• free enterprise

• economy

One of the three basic economic questions is

• how much will it cost?

• with which countries will be trade

• who will receive the goods and services?

• what will the wage rate be?

• what is the rate of unemployment?

Who owns the factors of production in a market economy?

• the government

• households

• general assemblies

• councils of workers

• public firms