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
