Micro 202 Exam Practice Questions
and Verified Answers 2026
Which of the following is an assumption under which the production possibilities
curve is drawn?
A) Total unemployment is zero.
B)The supply of resources is fixed.
C)The price level is changing.
D)Technology is changing. - <CORRECT ANSWER >>B
The fundamental problem of economics is?
A)The law of increasing opportunity costs.
B)The scarcity of resources relative to human wants.
C)How to get government to operate efficiently.
D)How to create employment for everyone. - <CORRECT ANSWER >>B
The basic factors of production include?
A)Land, labor, money, and capital.
B)Land, labor, money, and inputs.
C)Labor and money.
D)Land, labor, capital, and entrepreneurship. - <CORRECT ANSWER >>D
Opportunity cost may be defined as the
A)Goods or services that are forgone in order to obtain something else.
B)Dollar prices paid for final goods and services.
, C)Dollar cost of producing a particular product.
D)Difference between wholesale and retail prices. - <CORRECT ANSWER >>A
Microeconomics is concerned with issues such as
A)The demand for bottled water by individuals.
B)The level of inflation in the economy.
C)Maintaining a strong level of economic growth.
D)All of the choices are correct. - <CORRECT ANSWER >>A
Refer to Figure 1.7. The benefit of producing at point G rather than point D is
(Refer to notes for figure)
A)OA units of food.
B)KL units of clothing.
C)AB units of food.
D)OL units of clothing. - <CORRECT ANSWER >>B
When an economy is producing efficiently, it is
A)Producing a combination of goods and services beyond the production
possibilities curve.
B)Getting the maximum goods and services possible from the available resources.
C)Experiencing decreasing opportunity costs.
D)Producing equal amounts of all goods. - <CORRECT ANSWER >>B
If an economy is producing inside the production possibilities curve, then
A)There is full employment of resources.
and Verified Answers 2026
Which of the following is an assumption under which the production possibilities
curve is drawn?
A) Total unemployment is zero.
B)The supply of resources is fixed.
C)The price level is changing.
D)Technology is changing. - <CORRECT ANSWER >>B
The fundamental problem of economics is?
A)The law of increasing opportunity costs.
B)The scarcity of resources relative to human wants.
C)How to get government to operate efficiently.
D)How to create employment for everyone. - <CORRECT ANSWER >>B
The basic factors of production include?
A)Land, labor, money, and capital.
B)Land, labor, money, and inputs.
C)Labor and money.
D)Land, labor, capital, and entrepreneurship. - <CORRECT ANSWER >>D
Opportunity cost may be defined as the
A)Goods or services that are forgone in order to obtain something else.
B)Dollar prices paid for final goods and services.
, C)Dollar cost of producing a particular product.
D)Difference between wholesale and retail prices. - <CORRECT ANSWER >>A
Microeconomics is concerned with issues such as
A)The demand for bottled water by individuals.
B)The level of inflation in the economy.
C)Maintaining a strong level of economic growth.
D)All of the choices are correct. - <CORRECT ANSWER >>A
Refer to Figure 1.7. The benefit of producing at point G rather than point D is
(Refer to notes for figure)
A)OA units of food.
B)KL units of clothing.
C)AB units of food.
D)OL units of clothing. - <CORRECT ANSWER >>B
When an economy is producing efficiently, it is
A)Producing a combination of goods and services beyond the production
possibilities curve.
B)Getting the maximum goods and services possible from the available resources.
C)Experiencing decreasing opportunity costs.
D)Producing equal amounts of all goods. - <CORRECT ANSWER >>B
If an economy is producing inside the production possibilities curve, then
A)There is full employment of resources.
