ECO 2301
Sec 002
Spring 2014
K. Becker
QUIZ #1
Monday, January 27th
Answers
Choose the best answer to each of the following questions
1) Economics is best defined as the study of how people, businesses, governments, and societies
A) make choices to cope with scarcity.
B) use their infinite resources.
C) choose abundance over scarcity.
D) attain wealth.
1) A
2) The problem of “scarcity” applies
A) only in economic systems that are just beginning to develop because specialized resources
are scarce.
B) only in underdeveloped countries because there are few productive resources in these
countries.
C) only in industrially developed countries because resources are scarce in these countries.
D) to all economic systems, regardless of their level of development.
2) D
3) Scarcity requires that people must
A) compete.
B) make choices.
3) B
C) cooperate.
D) trade.
4) In broad terms the difference between microeconomics and macroeconomics is that
A) they use different sets of tools and ideas.
B) macroeconomics studies the effects of government regulation and taxes on the price of
individual goods and services whereas microeconomics does not.
C) microeconomics studies decisions of individual people and firms and macroeconomics
studies the entire national economy.
D) microeconomics studies the effects of government taxes on the national unemployment rate.
4) C
5) Factors of production are grouped into three categories:
A) land, labor, capital
B) land, labo, money
C) labor, capital, money
D) land, money, entrepreneurship
5) A
6) The loss of the highest-valued alternative defines the concept of
A) marginal benefit.
B) opportunity cost.
C) entrepreneurship.
D) scarcity.
6) B