EKN 110 QUESTIONS WITH
CORRECT SOLUTIONS!!
Economics is a social science concerned with - ANSWERthe best use of scarce
resources to achieve the maximum satisfaction of economic wants
Economics may best be defined as the - ANSWERsocial science concerned with
how individuals, institutions, and society make optimal choices under conditions of
scarcity
In deciding whether to study for an economics quiz or go to a movie, one is
confronted by the ideas of - ANSWERscarcity and opportunity costs
Which of the following most closely relates to the idea of opportunity costs? -
ANSWERtradeoffs
The budget line shows - ANSWERall possible combinations of two goods that can be
purchased, given money income and the prices of the goods
Which of the following is not a main function of the entrepreneur? - ANSWERmake
routine pricing decisions
The study of economics is primarily concerned with - ANSWERchoices that are
made in seeking the best use of resources
The assertion that "there is no free lunch" means that - ANSWERall production
involves the use of scarce resources and thus the sacrifice of alternative goods
In economics, the pleasure, happiness, or satisfaction received from a product is
called - ANSWERUtility
Alex sees that his neighbors lawns all need mowing. For $20 per hour, Economics
would describe Alex's behavior as: - ANSWERRational self-interest, because he's
attempting to increase his own income by identifying and satisfying someone else's
wants
Economics involves marginal analysis because - ANSWERmost decisions involve
changes from the present situation
A person should consume more of something when its marginal: - ANSWERbenefit
exceeds its marginal costs
Kara was out jogging and despite being tired, decided to one more mile. Based on
her actions, economists would conclude: - ANSWERdecided that the marginal
benefit of running one more mile would outweigh the cost of the additional mile
, The process by which economists test hypotheses against facts to develop theories,
principles, and models is called: - ANSWERscientific method
An economic hypothesis - ANSWERpossible explanation of cause and effect
A well-tested economic theory is often called - ANSWERprinciple/law
Which is an illustration of a microeconomics question? - ANSWERWill a new type of
television set increase the number of buyers?
Microeconomics is concerned with - ANSWERa detailed examinations of specific
economic units that make up the economic system
Microeconomics - ANSWERconcerned with individual economic units and specific
markets
The problems of aggregate inflation and employment are - ANSWERmajor topics of
macroeconomics
Which of the following is a microeconomics statement? - ANSWERThe price of
personal computers declined last year
A normative statement is one that - ANSWERis based on value judgements
Ben says that "increase in the tax on beer will raise its price." Holly argues "taxes
should be increased on beer because college students drink too much" -
ANSWERHolly's statement is normative, but Ben's is positive
Which of the following is real capital? - ANSWERa savings account
Which of the following are an economic resources? - ANSWERA bulldozer for a
construction company and a new factory building for making ice cream, A collage
English professor
A point on the PPC indicates that all resources are put to full use in the economy -
ANSWERTrue
On a production possibilities curve, the single optimal or best combination of output
for any society: - ANSWERDepends upon the preferences of society
The production possibilities curve - ANSWERis a frontier between all combinations
of two goods that can be produced and those combinations that cannot be produced
Any point inside the production possibilities curve indicates - ANSWERthat more
output could be produced with available resources
Unemployment - ANSWERis illustrated by a point inside the production possibilities
curve
CORRECT SOLUTIONS!!
Economics is a social science concerned with - ANSWERthe best use of scarce
resources to achieve the maximum satisfaction of economic wants
Economics may best be defined as the - ANSWERsocial science concerned with
how individuals, institutions, and society make optimal choices under conditions of
scarcity
In deciding whether to study for an economics quiz or go to a movie, one is
confronted by the ideas of - ANSWERscarcity and opportunity costs
Which of the following most closely relates to the idea of opportunity costs? -
ANSWERtradeoffs
The budget line shows - ANSWERall possible combinations of two goods that can be
purchased, given money income and the prices of the goods
Which of the following is not a main function of the entrepreneur? - ANSWERmake
routine pricing decisions
The study of economics is primarily concerned with - ANSWERchoices that are
made in seeking the best use of resources
The assertion that "there is no free lunch" means that - ANSWERall production
involves the use of scarce resources and thus the sacrifice of alternative goods
In economics, the pleasure, happiness, or satisfaction received from a product is
called - ANSWERUtility
Alex sees that his neighbors lawns all need mowing. For $20 per hour, Economics
would describe Alex's behavior as: - ANSWERRational self-interest, because he's
attempting to increase his own income by identifying and satisfying someone else's
wants
Economics involves marginal analysis because - ANSWERmost decisions involve
changes from the present situation
A person should consume more of something when its marginal: - ANSWERbenefit
exceeds its marginal costs
Kara was out jogging and despite being tired, decided to one more mile. Based on
her actions, economists would conclude: - ANSWERdecided that the marginal
benefit of running one more mile would outweigh the cost of the additional mile
, The process by which economists test hypotheses against facts to develop theories,
principles, and models is called: - ANSWERscientific method
An economic hypothesis - ANSWERpossible explanation of cause and effect
A well-tested economic theory is often called - ANSWERprinciple/law
Which is an illustration of a microeconomics question? - ANSWERWill a new type of
television set increase the number of buyers?
Microeconomics is concerned with - ANSWERa detailed examinations of specific
economic units that make up the economic system
Microeconomics - ANSWERconcerned with individual economic units and specific
markets
The problems of aggregate inflation and employment are - ANSWERmajor topics of
macroeconomics
Which of the following is a microeconomics statement? - ANSWERThe price of
personal computers declined last year
A normative statement is one that - ANSWERis based on value judgements
Ben says that "increase in the tax on beer will raise its price." Holly argues "taxes
should be increased on beer because college students drink too much" -
ANSWERHolly's statement is normative, but Ben's is positive
Which of the following is real capital? - ANSWERa savings account
Which of the following are an economic resources? - ANSWERA bulldozer for a
construction company and a new factory building for making ice cream, A collage
English professor
A point on the PPC indicates that all resources are put to full use in the economy -
ANSWERTrue
On a production possibilities curve, the single optimal or best combination of output
for any society: - ANSWERDepends upon the preferences of society
The production possibilities curve - ANSWERis a frontier between all combinations
of two goods that can be produced and those combinations that cannot be produced
Any point inside the production possibilities curve indicates - ANSWERthat more
output could be produced with available resources
Unemployment - ANSWERis illustrated by a point inside the production possibilities
curve
