ECON 1010 INTRODUCTION TO
MICROECONOMICS TEST BANK FINAL
PAPER 2026 FULL QUESTIONS WITH
CORRECT ANSWERS GRADED A+
⩥ Economic theory assumes people want... Answer: To advance the
projects in which they are interested.
⩥ To economize means to... Answer: Allocate available resources in a
way that yields the most value to the economizer.
⩥ The economic way of thinking... Answer: Explains how social order
and cooperation emerge from the actions of individuals.
⩥ Only individuals choose, which means... Answer: Only individuals
can assess the expected costs and benefits of an action.
⩥ Your textbook authors use the urban traffic example to show...
Answer: How social cooperation emerges when people act under
generally accepted rules.
⩥ According to your text, when people talk about "the economy" they
probably have in mind... Answer: Commercial society in general.
, ⩥ In a voluntary exchange... Answer: Both parties tend to receive more
in value than they give up.
⩥ The famous saying, "there is no such thing as a free lunch" means...
Answer: People face tradeoffs.
⩥ When we look at a production possibilities curve, the opportunity cost
can be understood as... Answer: The amount of the other good that must
be given up for one more unit of production.
⩥ The production possibilities frontier illustrates... Answer: The
maximum combination of two goods that can be produced with a given
set of resources.
⩥ A combination of two goods that lies beyond the production
possibilities frontier... Answer: Cannot be produced with the current set
of resources.
⩥ People specialize in activities in which they have a comparative
advantage... Answer: When they expect to obtain more of whatever they
want by doing so.
MICROECONOMICS TEST BANK FINAL
PAPER 2026 FULL QUESTIONS WITH
CORRECT ANSWERS GRADED A+
⩥ Economic theory assumes people want... Answer: To advance the
projects in which they are interested.
⩥ To economize means to... Answer: Allocate available resources in a
way that yields the most value to the economizer.
⩥ The economic way of thinking... Answer: Explains how social order
and cooperation emerge from the actions of individuals.
⩥ Only individuals choose, which means... Answer: Only individuals
can assess the expected costs and benefits of an action.
⩥ Your textbook authors use the urban traffic example to show...
Answer: How social cooperation emerges when people act under
generally accepted rules.
⩥ According to your text, when people talk about "the economy" they
probably have in mind... Answer: Commercial society in general.
, ⩥ In a voluntary exchange... Answer: Both parties tend to receive more
in value than they give up.
⩥ The famous saying, "there is no such thing as a free lunch" means...
Answer: People face tradeoffs.
⩥ When we look at a production possibilities curve, the opportunity cost
can be understood as... Answer: The amount of the other good that must
be given up for one more unit of production.
⩥ The production possibilities frontier illustrates... Answer: The
maximum combination of two goods that can be produced with a given
set of resources.
⩥ A combination of two goods that lies beyond the production
possibilities frontier... Answer: Cannot be produced with the current set
of resources.
⩥ People specialize in activities in which they have a comparative
advantage... Answer: When they expect to obtain more of whatever they
want by doing so.
