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Quiz on ch. 1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Among the fundamental concepts in economics are

a)

opportunity cost.

b)

marginalism

c)

Sacarcity

d)

all the above

2.

2) Which of the following is the best definition of economics?

a)

the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided

b)

the study of how consumers spend their income

c)

the study of how business firms decide what inputs to hire and what outputs to produce

d)

the study of how the federal government allocates tax dollars

3.

Opportunity cost is

a)

that which we forgo, or give up, when we make a choice or a decision.

b)

a cost that cannot be avoided, regardless of what is done in the future.

c)

the additional cost of producing an additional unit of output.

d)

the additional cost of buying an additional unit of a product.

4.

The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units is

a)

positive economics.

b)

normative economics.

c)

macroeconomics.

d)

microeconomics.

5.

Better insurance benefits increase the incentive of some individuals to work. This statement is best described as

a)

a positive statement.

b)

an example of the ceteris paribus assumption.

c)

a normative statement.

d)

a comparative economics statement.

6.

The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This statement is best described as

a)

an example of marginalism.

b)

an example of the fallacy of composition.

c)

a normative statement.

d)

a positive statement.

7.

If you own a building and you decide to use that building to open a book store

a)

there is no opportunity cost of using this building for a book store because you own it.

b)

there is an opportunity cost of using this building for a book store because it could have been used in other ways.

c)

the opportunity costs equal the cost of inventory.

d)

the only cost relevant to this decision is the price you paid for the building.

8.

A measure that can change from observation to observation is known as a(n)

a)

empirical measure.

b)

model.

c)

causality.

d)

variable.

9.

The four criteria that are frequently used in judging the outcome of economic policy are

a)

efficiency, equity, stability, and economic growth.

b)

efficiency, equality, stability, and economic growth.

c)

efficiency, equality, profitability, and stability.

d)

efficiency, equity, profitability, and stability.

10.

ما هو انطباعك عن المقرر

a)

كان مقرر صعب

b)

المقرر ممتع ويرتبط بالحباة

c)

المقرر سعل للفاية

d)

المقرر يحتاج الى التركيز والمتابعة