Week 1 Quiz Review Question Preview (ID: 21408)


This Review Was Created To Help You Review For The Week 1 Quiz. It Covers Chapters 1, 1 Appendix, And 2. TEACHERS: click here for quick copy question ID numbers.

When using the economic perspective, economists view the world through the lens of:
a) Demand and Supply
b) Purposeful Behavior
c) Scarcity
d) Marginalism

If you decide to buy a new car, you must believe that the:
a) Marginal Cost of purchasing the car is greater than the Marginal Benefit derived by owning the car.
b) Marginal Benefit of owning the car is greater than the Marginal Cost of purchasing the car.
c) The rebate offered on the car would pay for the taxes.
d) The supply of cars available is less than the demand for cars.

In economics, we use the expression - there is no such thing as a free lunch - that means that:
a) You will have to buy that person lunch in the future, so the cost is just delayed.
b) You may get a free lunch, but someone had to pay for it.
c) You weren't hungry, so you didn't eat much.
d) The marginal benefit of going to the restaurant was less than the marginal cost.

A production possibilities model shows:
a) The different combinations of goods that can be produced with a given set of resources.
b) The different costs of two goods.
c) The difference between what you can and can't afford.
d) The prices of two goods and how much you can produce with your current budget.

A point inside the Production Possibilities Curve is:
a) Attainable and Efficient.
b) Attainable and Inefficient.
c) Unattainable and Efficient.
d) Unattainable and Inefficient.

A point on the Production Possibilities Curve is:
a) Attainable and Efficient.
b) Attainable and Inefficient.
c) Unattainable and Efficient.
d) Unattainable and Inefficient.

A movement along the Production Possibilities Curve would indicate:
a) The cost of one good has gone up relative to the other good.
b) The economy is no longer running efficiently.
c) Society ran out of the resources to produce one of the goods.
d) Society has chosen to produce a different combination of goods.

If the unemployment rate fell, what impact would that have on a nation's Production Possibility Curve?
a) The curve would shift outward.
b) The curve would shift inward.
c) Nothing would happen to the curve, it would change where society was located.
d) The curve would have a new slope.

What does a nation have to do to get more of one good?
a) Give up some of the other good so that the resources are available to use.
b) Hire more people.
c) Increase the prices of the current goods they are producing.
d) They can't get more of one good. They have the maximum amount that they can.

In the Production Possibility Curve, we show Economic Growth by:
a) Shifting the entire curve to the left.
b) Shifting the entire curve to the right.
c) Leaving the curve where it is and shifting the point where society is producing at to the left.
d) Leaving the curve where it is and shifting the point where society is producing at to the right.

The market system has lots of features, one of these is:
a) The command system.
b) Opportunity Cost.
c) Competition.
d) The Circular Flow Model.

Households in the Circular Flow Model:
a) Sell goods and buy resources.
b) Sell goods and resources.
c) Sell resources and buy goods.
d) Engage in Demand and Supply Activities.

In the circular flow model, households earn:
a) Wages and Salaries, Rent, Interest, and Profits.
b) Labor, Land, Capital and Entrepreneurship.
c) Costs and Revenues.
d) Wages and Salaries only.

In the Resource Market:
a) Households buy resources and sell services.
b) Money flows from Individuals to Banks.
c) Money flows from Households to Businesses.
d) Money flows from Businesses to Households.

What to produce in a Market Economy is ultimately determined by:
a) Producers.
b) The profit that a business receives for its products.
c) Consumers through their dollar votes.
d) The amount of money required to produce different items.

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