maro
3) Suppose a consumer has an income of $16, the price of A is $2, and the price of B is $1.Which combination is on the consumer's budget line?A) 4A and 9BB) 5A and 6BC) 6A and 5BD) 8A and 16B
) 5A and 6B
7) Are the goods that businesses offer for "free" to consumers also free to society?A) Yes, because the individual consumer does not have to pay for them.B) Yes, because the marginal benefit is greater than the marginal cost.C) No, because scarce resources were used to produce the free goods.D) No, because society does not assign a value to free goods
.C) No, because scarce resources were used to produce the free goods.
f a consumer has an income of $200, the price of X is $5, and the price of Y is $10, themaximum quantity of X the consumer is able to purchase is:A) 5.B) 10.C) 20.D) 40
40
9) Economic models do not reflect the full complexity of reality and instead are based on:A) trade-offs.B) purposeful simplifications.C) value judgments.D) the fallacy of composition.
B) purposeful simplifications.
1) Microeconomics focuses on:A) the workings of the whole economy or large sectors of it.B) the individual units that make up the whole of the economy.C) issues such as unemployment and inflation.D) total output and the general level of price
B) the individual units that make up the whole of the economy.
what is the economic meaning of the expression that "there is no such thing as a free lunch"?A) It refers to "free-riders," who do not pay for the cost of a product but who receive the benefitfrom it.B) It means that economic freedom is limited by the amount of income available to theconsumer.C) It means there is an opportunity cost when resources are used to provide "free" products.D) It indicates that products only have value because people are willing to pay for them
C) It means there is an opportunity cost when resources are used to provide "free" products.
2) As a student of economics, when you speak of scarcity, you are referring to the ability of society to: A) employ all of its resources. B) consume all that is produced. C) satisfy economic wants given limited resources. D) continually make technological breakthroughs and increase production.
C) satisfy economic wants given limited resources.
2) Macroeconomics focuses on:A) the individual units that make up the whole of the economy.B) studies of how individual markets and industries are organized.C) total output and the general level of prices in the economy.D) how a business determines how much output to produce.
C) total output and the general level of prices in the economy.
5) The utility of a specific product:A) is determined by consumer income.B) is determined by the price of the product.C) varies from person to person using the product.D) is constant from person to person using the product
C) varies from person to person using the produc
8) The statement that "the unemployment rate will increase as the economy moves into arecession" is an example of:A) a normative statement.B) a microeconomic statement.C) marginal analysis.D) a generalization.
D) a generalization.
10) The purpose of the ceteris paribus assumption used in economic analysis is to:A) make sure that all relevant factors are considered.B) avoid making normative statements.C) avoid making positive statements.D) restrict the analysis to the effect of a single economic facto
D) restrict the analysis to the effect of a single economic factor
4) The satisfaction or pleasure one gets from consuming a good or service is called:A) price.B) utility.C) consumption.D) preferences.
b ulity
1) The basic economic problem is essentially one of deciding how to make the best use of
imited resources to satisfy unlimited economic wants.
6) When an economist says that there is "too much of a good thing," the economist is suggestingthat:A) scarcity is not a problem.B) wants are limited.C) the marginal cost of the thing is less than the marginal benefit.D) the marginal benefit of the thing is less than the marginal cost.
the marginal benefit of the thing is less than the marginal cost.
