A.   Investing

B.   Politics

C.   How people deal with scarcity

D.   Getting rich

A.   Ockham's Razor

B.   The law of increasing opportunity costs

C.   The law of diminishing costs

D.   The law of increasing returns

A.   Economic resources are sometimes misallocated.

B.   Economic resources are finite.

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

D.   Economic resources are perfectly adaptable to alternative uses.

A.   operate at full employment.

B.   avoid any waste or misallocation of resources.

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

D.   allocate its resources efficiently.

A.   shifts outward.

B.   becomes straighter.

C.   starts to bow inward.

D.   becomes more curved.

A.   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.

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

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

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.

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

C.   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.

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

A.   calculations

B.   formulas

C.   models

D.   biases

A.   The central processing unit is the price mechanism.

B.   It's fuel is money.

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

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

A.   An increase in the population and technological progress.

B.   Discovery of a new supply of resources.

C.   Technological progress

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

A.   This is a normative statement.

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

C.   This is a positive statement

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

A.   All industries are equally satiated with 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 receive an equal amount of a particular resource.

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

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

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

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

A.   Everyone receives an equal income.

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

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

D.   The distribution of income is the fairest.

A.   opportunity costs.

B.   normative economics

C.   imperfect information

D.   marginal benefits that exceed marginal costs

A.   households and businesses make rational decisions

B.   wants are scarce relative to resources

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

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

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

B.   contradicts the economic perspective

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

D.   is an example of irrational behavior

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

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

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

D.   irrational because some neighbors refused his offer

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

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

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

D.   must be an avid runner

A.   Anomaly

B.   Principle

C.   Comparison

D.   Hypothesis

A.   the scientific method

B.   the economic perspective

C.   microeconomics

D.   policy economics

A.   must use mathematical equations

B.   make simplifying assumptions

C.   include all available information

D.   expect to exactly duplicate the real world

A.   derived by deduction

B.   objective and is based on facts

C.   subjective and is based on a value judgment

D.   derived by induction

A.   A piece of software used by a firm

B.   A computer programmer

C.   A corporate bond issued by a computer manufacturer

D.   Silicon (sand) used to make computer chips

A.   An oil drilling rig

B.   A farmer

C.   A machine for detecting earthquakes

D.   Natural gas

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

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

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

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

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

C.   The reduction of unemployment.

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

A.   wants are virtually unlimited.

B.   resources are scarce.

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

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

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

B.   the presence of inflationary pressures.

C.   the presence of technological change.

D.   that resources are imperfectly substitutable among alternative uses.

A.   Full production.

B.   Productive efficiency.

C.   Full employment.

D.   International specialization and trade.

A.   human capital.

B.   property rights.

C.   public goods.

D.   capital goods.

A.   derived demand.

B.   the invisible hand.

C.   consumer sovereignty.

D.   market failure.

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

B.   contribute to a more equal distribution of income.

C.   achieve full employment and price level stability.

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