Eco 535 - Digital Economy » Winter 2022 » Wk 1 Practice Ch 1, Limits, Alternatives, and Choice

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Question #1
Which of the following is a result of having scarce economic resources for the production of goods and services?
A.   Fewer options that require choices
B.   Deflation
C.   The production of unlimited goods and services
D.   Poverty and unequal distribution of wealth
Question #2
Which best defines utility?
A.   The utilization of economic resources by consumers when engaging in consumption
B.   The utilization of economic resources by producers when engaging in production
C.   The satisfaction or pleasure obtained from producing a good or service
D.   The satisfaction or pleasure obtained from consuming a good or service
Question #3
Because consumers behave in a rationally self-interested manner, the consumer will purchase a good or service ______.
A.   by examining only marginal costs
B.   when the marginal benefit is greater than the marginal cost
C.   when opportunity costs are greater than marginal benefits
D.   by examining only marginal benefits
Question #4
Which of the following are ways of expressing the meaning of ceteris paribus?
A.   Assuming other things are equal. Assuming factors other than those being considered in a particular analysis do not change
B.   Assuming factors other than those being considered in a particular analysis do not change. Assuming additional factors, other than those under consideration, are given equal consideration
C.   Assuming additional factors, other than those under consideration, play a significant role in analysis. Assuming additional factors, other than those under consideration, are given equal consideration
D.   Assuming additional factors, other than those under consideration, play a significant role in analysis. Assuming other things are equal
Question #5
Which of the following are issues most explored in microeconomics?
A.   The level of public debt, The expenditures of a government entity, and Unemployment and inflation rates
B.   Measuring the price of specific goods, The level of public debt and Unemployment and inflation rates
C.   The expenditures of a government entity, Measuring total revenues of a firm, and Measuring the price of specific goods
D.   The level of public debt and Unemployment and inflation rates
Question #6
_____ is the discipline that examines the performance and behavior of an economy as a whole.
A.   Macroeconomics
B.   Microeconomics
Question #7
______ economic resources means limited goods and services.
A.   Scarce
B.   Insatiable
C.   Physical
D.   Tangible
Question #8
The pleasure, satisfaction, or happiness obtained from consuming a good or service is known as
A.   margin
B.   necessity
C.   accessibility
D.   utility
Question #9
Suppose you are given a $100 gift card and you choose to spend it on a number of goods. You will select a combination of goods that is best for you and that maximizes your satisfaction. Your choices will involve which of the following?
A.   A comparison of marginal benefits and marginal costs for each good considered
B.   The available supply of each good considered
C.   A decision between attainable and unattainable combinations of the goods under consideration
D.   An evaluation of the unlimited resources used in the production of each good considered
Question #10
Which discipline studies the decision-making process of customers, workers, households, and business firms on an individual basis rather than as aggregates?
A.   Macroeconomics
B.   Microeconomics
C.   Positive economics
D.   Negative economics
Question #11
Which discipline studies the economy as a whole or its basic subdivisions or aggregates?
A.   Macroeconomics
B.   Normative economics
C.   Positive economics
D.   Microeconomics
Question #12
Positive economics ______ value judgments, tries to establish ______ statements about economic behavior, and deals with ______ economic events.
A.   avoids; scientific; actual
B.   encourages; scientific; actual
C.   avoids; normative; actual
D.   encourages; scientific; potential
E.   encourages; normative; potential
Question #13
Because consumers behave in a rationally self-interested manner, the consumer will purchase a good or service ______.
A.   by examining only marginal benefits
B.   when opportunity costs are greater than marginal benefits
C.   by examining only marginal costs
D.   when the marginal benefit is greater than the marginal cost
Question #14
Positive economics encourages value judgments.
A.   True
B.   False
Question #15
Your next-door neighbors want to go on a European vacation but cannot afford it, so they decide to visit a local amusement park instead. This is an example of ______.
A.   ceteris paribus
B.   the economizing problem
C.   the utility problem
D.   a hypothesis
Question #16
______ comes in the form of wages, interest, rent, profit, and even from government programs.
A.   Income
B.   Transfers
C.   Taxes
D.   Spending
Question #17
For better or worse, people have ______.
A.   virtually unlimited wants
B.   virtually unlimited income
C.   extremely limited desires
D.   few unsatisfied wants
Question #18
A consumer's _____ line or constraint shows various combinations of two products that can be purchased with a specific amount of income.
A.   budget
B.   expectation
C.   normal
D.   desire
Question #19
Land and mineral resources, transportation and communication facilities, factories and farm buildings, equipment, tools and machinery are all examples of _______.
A.   economic growth
B.   scarce economic resources
C.   unlimited economic resources
D.   insatiable wants
Question #20
Which of the following describes a budget line?
A.   A curve showing various combinations of two products a consumer can purchase with a specific amount of income.
B.   A schedule showing various combinations of three or more products a consumer can purchase at different prices.
C.   A curve showing various combinations of three or more products a consumer can purchase at different prices.
D.   A curve showing various combinations of two products an economy can produce with a specific amount of resources.

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