A.   How people deal with scarcity

B.   Investing

C.   Getting rich

D.   Politics

A.   The law of increasing opportunity costs

B.   Ockham's Razor

C.   The law of diminishing costs

D.   The law of increasing returns

A.   Economic resources are finite.

B.   Economic resources are not completely adaptable to alternative uses.

C.   Economic resources are sometimes misallocated.

D.   Economic resources are perfectly adaptable to alternative uses.

A.   operate at full employment.

B.   allocate its resources efficiently.

C.   Operate at full employment, allocate its resources efficiently and avoid any waste or misallocation of resources.

D.   avoid any waste or misallocation of resources.

A.   becomes straighter.

B.   becomes more curved.

C.   shifts outward.

D.   starts to bow inward.

A.   the fact that the government is ruled by the consumer, which in turn is ruled by the corporation.

B.   the fact that corporations impose their own wills on the consumer in determining what will be produced.

C.   the fact that the consumer is king in a market economy, and this dictator will harshly punish any firm that does not quickly respond to his dollar votes.

D.   the fact that the consumer is ruled by the corporation and must play by its set of rules.

A.   Respond quickly and accurately to the dollar votes of the consumer, allocate and utilize society's scarce resources as efficiently as they can, and continually increase their productivity through technological progress and better uses of society's scarce resources.

B.   respond quickly and accurately to the dollar votes of the consumer.

C.   continually increase their productivity through technological progress and better uses of society's scarce resources.

D.   allocate and utilize society's scarce resources as efficiently as they can.

A.   calculations

B.   formulas

C.   models

D.   biases

A.   It's fuel is money.

B.   It's purpose is to produce material wealth.

C.   The central processing unit is the price mechanism.

D.   The accelerator/decelerator is the level of total spending. 

A.   Technological progress

B.   An increase in the population and technological progress.

C.   An increase in the population, technological progress, and discovery of a new supply of resources.

D.   Discovery of a new supply of resources.

A.   The line on a graph representing the relationship between these two variables would have a negative slope.

B.   This is a positive statement

C.   This is a normative statement.

D.   The relationship between consumer spending and the unemployment rate is negative.

A.   All industries receive an equal amount of a particular resource.

B.   All industries are willing to pay the same price for all resources

C.   Ditch diggers and doctors receive the same wage.

D.   All industries are equally satiated with a particular resource

A.   Firms use “least cost” method of producing goods and services.

B.   The production of goods and services uses the most “capital intensive” techniques.

C.   The firm uses the most labor intensive method of production.

D.   The firm is able to charge the highest price possible for the product.

A.   Everyone receives an income that is equal to the value of their productive contribution to society.

B.   The distribution of income is the fairest.

C.   Everyone receives an income that is as high as possible.

D.   Everyone receives an equal income.

A.   imperfect information

B.   opportunity costs.

C.   marginal benefits that exceed marginal costs

D.   normative economics

A.   the decision to engage in one activity means forgoing some other activity

B.   wants are scarce relative to resources

C.   most decisions do not involve sacrifices or trade-offs

D.   households and businesses make rational decisions

A.   implies that electronic media sources are displacing print sources for many consumers

B.   implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.

C.   is an example of irrational behavior

D.   contradicts the economic perspective

A.   greedy because he is asking for a high wage that some of his neighbors can't afford to pay

B.   irrational because some neighbors refused his offer

C.   selfish because he is asking for a wage that is higher than others might charge

D.   rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.

A.   decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile

B.   decided that the marginal cost of running one more mile would outweigh the benefit of the additional mile

C.   was not very tired, so the marginal cost of the extra mile was very low

D.   must be an avid runner

A.   Hypothesis

B.   Comparison

C.   Anomaly

D.   Principle

A.   the economic perspective

B.   microeconomics

C.   policy economics

D.   the scientific method

A.   include all available information

B.   make simplifying assumptions

C.   expect to exactly duplicate the real world

D.   must use mathematical equations

A.   subjective and is based on a value judgment

B.   objective and is based on facts

C.   derived by deduction

D.   derived by induction

A.   A computer programmer

B.   Silicon (sand) used to make computer chips

C.   A corporate bond issued by a computer manufacturer

D.   A piece of software used by a firm

A.   Natural gas

B.   A machine for detecting earthquakes

C.   An oil drilling rig

D.   A farmer

A.   the production of more of any one good will in time require smaller and smaller sacrifices of other goods.

B.   an economy's capacity to produce increases in proportion to its population size.

C.   if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.

D.   an economy will automatically obtain full employment of its resources.

A.   An increase in the quantity of a society's labor force.

B.   The reduction of unemployment.

C.   The improvement of a society's technological knowledge.

D.   An upgrading of the quality of a nation's human resources.

A.   resources are scarce.

B.   the originator of the idea drew it this way and modern economists follow this convention.

C.   wants are virtually unlimited.

D.   resources are not generally equally efficient in producing every good.

A.   the presence of inflationary pressures.

B.   that more output could be produced with the available resources.

C.   the presence of technological change.

D.   that resources are imperfectly substitutable among alternative uses.

A.   International specialization and trade.

B.   Full production.

C.   Full employment.

D.   Productive efficiency.

A.   capital goods.

B.   human capital.

C.   public goods.

D.   property rights.

A.   the invisible hand.

B.   market failure.

C.   consumer sovereignty.

D.   derived demand.

A.   contribute to a more equal distribution of income.

B.   reallocate resources from less desired to more desired uses.

C.   achieve full employment and price level stability.

D.   promote the equal distribution of real assets and wealth.