Eco exam 1

Which of the following statements about scarcity is true? A) Scarcity refers to the situation in which unlimited wants exceed limited resources. B) Scarcity is not a problem for the wealthy. C) Scarcity is only a problem when a country has too large a population. D) Scarcity only arises when there is a wide disparity in income distribution.

A) Scarcity refers to the situation in which unlimited wants exceed limited resources.

If the price of milk was $2.50 a gallon and it is now $3.25 a gallon, what is the percentage change in price? A) 13 percent B) 30 percent C) 75 percent D) 77 percent

B) 30 percent

In economics, the term ________ means "additional" or "extra." A) allocative B) marginal C) equity D) optimal

B) marginal

The extra cost associated with undertaking an activity is called A) net loss. B) marginal cost. C) opportunity cost. D) foregone cost.

B) marginal cost.

The branch of economics which studies how households and firms interact in markets is called A) macroeconomics. B) microeconomics. C) positive economics. D) normative economics.

B) microeconomics.

In a modern mixed economy, who decides what goods and services will be produced? A) only the producers B) only consumers C) only the government D) producers, consumers, and government

D) producers, consumers, and government

Macroeconomics is the study of A) how households make choices. B) how firms make choices. C) how households and firms make choices. D) the economy as a whole.

D) the economy as a whole.

In economics, the term ________ refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade. A) collective B) cooperative C) market D) trade-off

C) market

If a straight line passes through the point x = 14 and y = 3 and also through the point x = 4 and y = 10, the slope of this line is A) negative 11 divided by 6. B) seven-tenths. C) negative seven-tenths. D) 6 divided by 11.

C) negative seven-tenths.

Which of the following statements is false? A) An inverse relationship has a negative slope value. B) A direct relationship has a positive slope value. C) A curved line has slope values that change at every point. D) A straight line has a slope of zero.

D) A straight line has a slope of zero.

The government makes all economic decisions in a centrally planned economy. Answer: TRUE / FALSE

TRUE