ECON104 QUIZ 1- SCARCITY

Which is considered a factor of production: 1) money in a checking account 2) A firm's common stock 3) US savings bonds 4) an auto plant

An auto plant

The statement in a newspaper that "consumer prices rose last month by 1%, and if this trend continues, the annual rate of inflation will be 12% for the year" is an example of

A theoretical economic statement

The purpose of the ceteris Paribus assumption used in economic analysis is to

Focus on the effect of a single factor on a certain variable

From the economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that

Marginal benefits of more insurance coverage are greater than marginal costs

Allocative efficiency is also called

Most wanted efficiency

The process of developing hypothesis, testing them against facts, and using the results to construct series is called

The scientific method

Which is an illustration of a microeconomic question: 1) what is the current national rate of unemployment 2) is the economy experiencing a decline in the rate of inflation 3) Will a new type of television set increase the number of buyers 4) is the production of goods and services in the economy greater this year than last year

Will a new type of television set increase the number of buyers

Which expression is another way of saying marginal cost

additional cost

For economists, the word utility means

pleasure or satisfaction

The key economic concept that serves as the basis for the study of economics is

scarcity