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Economics: Lecture 1 Review

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

Most of economic theory..

a)

views charitable human actions as especially moral

b)

views individuals as home economists

c)

assumes that groups of people often behave irrationally

d)

assumes people act rationally to maximize their own interest

2.

Microeconomics is not concerned with ...

a)

the quantities of each good produced

b)

the size of aggregate money flows in the economy

c)

the distribution of goods among households

d)

microeconomics is concerned with all of the above

3.

Which of the following is a positive statement?

a)

An unemployment rate of 7 percent is a national disgrace

b)

Unemployment is not so important a problem as inflation

c)

Unemployment and inflation are equally important problems

d)

When unemployment is 7%, youth unemployment is close to 40%

4.

Which of the following is the best definition of opportunity cost?

a)

amount of A to be given up to produce one more unit of B

b)

money to be paid to purchase one more unit of a good

c)

amount of input used to produce one more unit of a good

d)

the price to be charged in order to sell one more unit

5.

A production possibility curve represents the...

a)

options for a government.

b)

future choices for a business.

c)

various combination of two goods that can be produced.

d)

way factors of production can be used.

6.

A production possibility curve is drawn on the assumption that the ______________

a)

Amount of costumers and availability of labor is fixed

b)

Quality of resources and state of technology is flexible

c)

Amount of costumers and availability of labor is flexible

d)

Quality of resources and state of technology is fixed

7.

What will cause the production possibility frontier to shift outwards

a)

technology

b)

unemployment

c)

price

d)

business

8.

Trump proposing to build a wall seperating Mexico and the United States to make the economy great again is what kind of statement?

a)

Positive statement

b)

Normative statement

c)

An economic statement

d)

An inebriated statement

9.
The definition of Scarcity is...
a)
An unlimited amount of resources to meet limited wants and needs
b)
A limited amount of resources to meet unlimited wants and needs.
c)
When people use time and energy to create events
d)
a city where individuals commit themselves to unlimited wants and needs
10.
What is the fundamental problem of economics? 
a)
How to keep consumers out of debt?
b)
How to fulfill our unlimited wants and needs with limited resources?
c)
How to figure out the way to make the most money?
d)
How do we ensure all people get a college education?