1. Opportunity costs are (Points : 1)
only dollar expenditures.
costs that never include dollar expenditures.
dollar expenditures plus time costs and other forgone activities.
only relevant for individuals and not for government.
Question 2. 2. When economists make the assumption that wants are unlimited, they mean that most people (Points : 1)
want more of everything.
are satisfied with what they have.
want more of some goods, even if they don’t want more of everything.
don’t care what they have.
Question 3. 3. Self-interested behavior and incentives are (Points : 1)
not operational in socialistic economic systems.
the organizing principles in a market economy.
not present in markets for goods and services.
available in third-world economies.
the basis for the Canadian currency.
Question 4. 4. Along with the other social sciences, economics is concerned with (Points : 1)
the behavior of human beings as individuals.
the behavior of human beings in groups.
the activities of international agencies.
the laws of mathematics as they apply to decision making.
the behavior of human beings both as individuals and in groups.
Question 5. 5. In economics, scarcity means that (Points : 1)
there are not sufficient resources to produce everything that people want.
poverty will always exist.
a country can never feed all of its citizens.
the price of a good may increase more rapidly than the general price level.
there is not enough of a particular good for people to buy all they want at the prevailing price.
Question 6. 6. In Collegia, a small college town, the market for parking spaces is in equilibrium at a going price of $5 a day. There are 1,500 spaces and they are all sold every day with no unsatisfied buyers. Now the college takes in 200 more students, each of whom also wants a parking space at $5 a day. If there is a normal, upward-sloping supply curve, what will happen when the market has time to adjust? (Points : 1)
There will be 1,700 parking spaces at $5 a day.
There will be 1,500 parking spaces at some price greater than $5 a day.
There will be more than 1,500 but less than 1,700 parking spaces at $5 a day.
There will be more than 1,500 but less than 1,700 parking spaces and the price will be more than $5 a day.
Question 7. 7. In what type of economic system are the basic economic questions answered in the same way as in the past? (Points : 1)
A planned economy
A traditional economy
A command economy
A market economy
Question 8. 8. The measure of the cost of a particular good in terms of what is given up to produce that good is called (Points : 1)
a fixed cost.
a dollar cost.
a necessary cost.
an opportunity cost.
an explicit cost.
Question 9. 9. The interactions of producers and consumers in individual markets are part of the study of (Points : 1)
Question 10. 10. If beans are inferior goods, a decrease in income will (Points : 1)
cause beans to sell at a lower price.
increase the production of beans.
shift the demand curve for beans to the left.
shift the demand curve for beans to the right.
rotate the supply curve in a clockwise manner.