ECON 1010 INTRODUCTION TO
MICROECONOMICS TEST BANK EXAM
SCRIPT 2026 TESTED QUESTIONS WITH
VERIFIED ANSWERS GRADED A+
⩥ Each scenario illustrates a principle of economics. Classify each
scenario according to the principle that best fits it.
a. An educational software company wants to expand the number of
economics questions that it offers and is considering hiring another
economist. The company compares how much adding another worker
will improve the product to the additional cost.
b. Ava finds that there is not enough time after work to have dinner,
exercise, and watch TV, and she must make choices about how to use
her limited time.
c. On Black Friday, there are huge sales for electronics at many retail
stores. David must decide between buying a camera at one store or a flat
screen TV at another store. Answer: a. Marginal analysis
b. Resource scarcity
c. Opportunity cost
⩥ In which scenario is an individual's behavior least likely to change?
,A basketball team manages to sign a trio of famous basketball stars who
then clamor for other players to come join their team to win a guaranteed
championship.
The country of Ravamolk enacts a policy to fine companies 20% of their
earnings if the safety standards in their factories do not reach acceptable
work conditions.
In an effort to make people eat healthier, the city of Bakersville tells its
residents to eat wheat bread instead of white bread.
The city of Saskatoon chooses to give its residents a penny for each soda
can they recycle in an effort to promote environmental awareness..
Answer: In an effort to make people eat healthier, the city of Bakersville
tells its residents to eat wheat bread instead of white bread.
⩥ Which of the following scenarios involves no opportunity cost?
It's Friday night and you stay up late talking and hanging out with your
friends.
You eat lunch with the chemistry club, which is giving out free pizza for
lunch to all who come to their table to get it.
,Naomi, age 8, is at a bookstore and chooses to buy a book about a young
wizard instead of buying a math textbook that she would probably never
open.
Chez Moi and Chez Nous, two premiere French restaurants with three
Michelin stars, both offer you a full-time sous chef job at the same
salary. You are ecstatic because you know it is a win-win scenario and
choose to work for Chez Nous.
All of these scenarios have an opportunity cost.. Answer: All of these
scenarios have an opportunity cost.
⩥ Determine which economic principle is illustrated by each scenario.
a. The owner of a snow cone trailer realizes that the demand for snow
cones is low during the winter and closes shop until the temperature
warms back up near summertime.
b. The local river has so much pollution that three-eyed fish are forming.
Regulations are therefore enacted to limit the amount of chemicals
dumped into the river.
c. At a high-end restaurant, the restaurant owner has one chef at a meat
station, one chef at a vegetable station, and one chef, who has an artistic
eye, plate the food she is given. The result is increased service speed,
enabling the kitchen to serve more customers in an evening.
, d. During the summer, a bumper crop of oranges in Florida causes a
surplus in the supply of oranges nationwide. As a result, prices fall to
compensate for the surplus, and consumers enjoy the fruits of the
farmers' labor.. Answer: a. Market efficiency
b. Government intervention
c. Specialization
d. Equilibrium
⩥ Please select the economic term that is best described by each
statement.
a. People have limited resources to satisfy unlimited wants.
scarcity
business cycle
tradeoffs
margins
entrepreneurship
recession
b. Everything you do requires giving up something (time, money, etc.).
MICROECONOMICS TEST BANK EXAM
SCRIPT 2026 TESTED QUESTIONS WITH
VERIFIED ANSWERS GRADED A+
⩥ Each scenario illustrates a principle of economics. Classify each
scenario according to the principle that best fits it.
a. An educational software company wants to expand the number of
economics questions that it offers and is considering hiring another
economist. The company compares how much adding another worker
will improve the product to the additional cost.
b. Ava finds that there is not enough time after work to have dinner,
exercise, and watch TV, and she must make choices about how to use
her limited time.
c. On Black Friday, there are huge sales for electronics at many retail
stores. David must decide between buying a camera at one store or a flat
screen TV at another store. Answer: a. Marginal analysis
b. Resource scarcity
c. Opportunity cost
⩥ In which scenario is an individual's behavior least likely to change?
,A basketball team manages to sign a trio of famous basketball stars who
then clamor for other players to come join their team to win a guaranteed
championship.
The country of Ravamolk enacts a policy to fine companies 20% of their
earnings if the safety standards in their factories do not reach acceptable
work conditions.
In an effort to make people eat healthier, the city of Bakersville tells its
residents to eat wheat bread instead of white bread.
The city of Saskatoon chooses to give its residents a penny for each soda
can they recycle in an effort to promote environmental awareness..
Answer: In an effort to make people eat healthier, the city of Bakersville
tells its residents to eat wheat bread instead of white bread.
⩥ Which of the following scenarios involves no opportunity cost?
It's Friday night and you stay up late talking and hanging out with your
friends.
You eat lunch with the chemistry club, which is giving out free pizza for
lunch to all who come to their table to get it.
,Naomi, age 8, is at a bookstore and chooses to buy a book about a young
wizard instead of buying a math textbook that she would probably never
open.
Chez Moi and Chez Nous, two premiere French restaurants with three
Michelin stars, both offer you a full-time sous chef job at the same
salary. You are ecstatic because you know it is a win-win scenario and
choose to work for Chez Nous.
All of these scenarios have an opportunity cost.. Answer: All of these
scenarios have an opportunity cost.
⩥ Determine which economic principle is illustrated by each scenario.
a. The owner of a snow cone trailer realizes that the demand for snow
cones is low during the winter and closes shop until the temperature
warms back up near summertime.
b. The local river has so much pollution that three-eyed fish are forming.
Regulations are therefore enacted to limit the amount of chemicals
dumped into the river.
c. At a high-end restaurant, the restaurant owner has one chef at a meat
station, one chef at a vegetable station, and one chef, who has an artistic
eye, plate the food she is given. The result is increased service speed,
enabling the kitchen to serve more customers in an evening.
, d. During the summer, a bumper crop of oranges in Florida causes a
surplus in the supply of oranges nationwide. As a result, prices fall to
compensate for the surplus, and consumers enjoy the fruits of the
farmers' labor.. Answer: a. Market efficiency
b. Government intervention
c. Specialization
d. Equilibrium
⩥ Please select the economic term that is best described by each
statement.
a. People have limited resources to satisfy unlimited wants.
scarcity
business cycle
tradeoffs
margins
entrepreneurship
recession
b. Everything you do requires giving up something (time, money, etc.).
