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Economics Ten MCQs

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Question;Economics is primarily the study of:A) how scarcity can be eliminatedB) how firms manipulate pricesC) how government influences resource allocation decisionsD) the problem of scarce resources relative to human wants2 Suppose you have a $20 iTunes gift card with which you can buy (download) songs or videos. Songs cost $1.00 each and videos cost $2.00 each. The opportunity cost of one video:A) increases as more videos are purchasedB) is $1.00C) is constant and equal to ? songD) is constant and equal to 2 songs3 You should decide to study an extra hour tonightA) if the marginal cost of studying an extra hour exceeds its marginal benefitB) if the marginal benefit of studying an extra hour exceeds its marginal costC) if you got a lower than expected grade on your last examD) because studying harder will improve your test scores4 Answer the next question on the basis of the data given in the following production possibilities table:Refer to the above table. These data indicate that increasing production of capital goods requires:A) increasing sacrifices of consumer goodsB) decreasing sacrifices of consumer goodsC) constant sacrifices of consumer goodsD) no sacrifices of consumer goods5 Consider the problem Marsha faces of how to allocate her weekly allowance between books and CDs. An increase in Marsha's income will:A) shift her budget line to the rightB) shift her budget line to the leftC) rotate her budget line, allowing her to buy more books but not more CDsD) rotate her budget line, allowing her to buy more CDs but not more books6 The negative slope of the production possibilities curve illustrates that:A) some resources are always unemployedB) when resources are fully employed, an economy can produce more of one thing only by producing less of something elseC) opportunity costs are constantD) business can sell more when prices are low7 A microeconomist would most likely study:A) how consumers respond to a change in gasoline pricesB) the effects of an income tax reduction on the size of the national budget deficitC) the effects of aggregate consumer debt on overall consumption spendingD) the relationship between the size of the money supply and the rate of inflation8 Refer to the following:Which of the points in the diagram is currently unattainable given the economy's resources?A) Point AB) Point BC) Point CD) Point D9 The fundamental problem of economics implies that:A) governments must be relied upon to supply essential goods and servicesB) inflation and unemployment are unavoidableC) growing populations will deplete natural resourcesD) individuals and communities must make choices among competing alternatives10 Margaret decides to stay home and study for her exam rather than going out to a movie with her friends. Her dilemma is an example of:A) the economic perspectiveB) marginal analysisC) opportunity costD) allocative efficiency

 

Paper#56900 | Written in 18-Jul-2015

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