Chapter 1 Quiz

Question 1

Resource use is efficient when​ _______.
A.
it is not possible to make someone better off without making someone else worse off
B.
workers receive an income equal to that made by their employers
C.
wealth is spread equally throughout society
D.
new resources are constantly being discovered and no resource depletion occurs

Answer 1

a

Question 2

A rational choice​ \_\_\_\_\_\_\_.
A.
is always the best choice for society
B.
has the lowest opportunity cost
C.
will turn out to have been the best choice after the event
D.
achieves the greatest benefit over cost for the person making the choice

Answer 2

d

Question 3

Economics is​ _______.
A. a subject that studies how individuals cope with scarcity
B.
a subject that teaches us how to eliminate scarcity
C.
a subject that tells countries what goods they must trade
D.
a subject that tells governments what they must do

Answer 3

a

Question 4

Every​ day, we make many choices.

We​ can’t avoid having to make choices because​ ________.

Answer 4

we cant afford to buy all the things we want

Question 5

Which of the following is an example of a​ tradeoff?

Answer 5

you spend less on movies and more on textbooks

Question 6

For the past​ year, Jen has played tennis 4 times a month.
She now decides to play tennis 5 times a month.
You infer that for Jen ​, ​_______.

Answer 6

A.
the marginal cost of a game of tennis must have decreased
B.
either the marginal benefit from a game of tennis has increased or the marginal cost has decreased
C.
either the marginal cost of a game of tennis has increased or the marginal benefit has decreased
D.
the marginal benefit from a game of tennis must have increased

Question 7

Consider the earnings of economics majors in comparison to the earnings of other majors.
The earnings of economics majors are​ _______.

Answer 7

A.
less than business majors but greater than finance majors
B.
greater than​ finance, engineering,​ math, and business majors
C.
less than political​ science, computer science and math majors
D.
less than business and math majors but greater than engineering majors

Question 8

Choose the correct statement.
A.
You make choices based on what you think is best for society as a whole
B. Social interest and self interest do not conflict
C. choices are the best for more than one person and are said to be in the social interest
D. What we do in pursuit of our self interest can further the social interest

Answer 8

d

Question 9

economics is

Answer 9

a social sicence

not a subject that teaches us how to eliminate scarcity

Question 10

human capital determines

Answer 10

the quality of labour