EXAM QUESTIONS AND ANSWERS||A+
SOLUTION GUIDE(VERIFIED)
1. Ifmthemgovernmentmprovidesmmoremeducationmformmorempeople,mthemcostmwillmbemequalmt
om__________.m-
mCORRECTmANSWERmThemvaluemofmthemothermgoodsmthatmaremforgoneminmordermtomprovid
emmoremeducation.
2. ThemanswermcanmbemfoundminmChapterm1,mSectionm1.2,mScarcity:mLimitedmResourcesmbutmU
nlimitedmWants.
3. Accordingmtomeconomicmtheory,mpeoplemaremforcedmtommakemchoicesmbecausemofm______
____.m-mCORRECTmANSWERmscarcity
4. AnmeditorialminmthemHarpertownmGazettemarguesmthatmthemgovernmentmoughtmtomabolishm
themminimummwagembecausemitmlowersmemployment.mThismismanmexamplemofma(n)m______
____meconomicmstatement.m-mCORRECTmANSWERmnormative
5. Inmanmeconomicmsystem,mwhichmofmthemfollowingmismNOTmamtypicalmgovernmentmactivity?m-
mCORRECTmANSWERmprivatization
6. Whatmgovernmentmfunctionmormfunctionsmpromotempricemsteadinessmandmfullmemployme
nt?m-mCORRECTmANSWERmstabilization
7. AssumemthatmIndianamleviesmamtaxmonmgasolinemandmusesmthemproceedsmtomrepairmroadsmin
mlow-incomemareas.mWhichmgovernmentmfunction(s)mism(are)mbeingmcarriedmout?m-
mCORRECTmANSWERmbothmallocationmandmredistribution
8. WhichmonemofmthemfollowingmdoesmNOTmaffectmdemandmformamgood?m-
mCORRECTmANSWERmthemcostsmofmproductivemresources