Microeconomics Exam 1 Multiple
Choice/35 Q’s and A’s
In economics, we assume that our wants and needs are ___________ our
ability to satisfy them - -greater than
-Which of the following best describes what economists assume is true
about human behavior? - -People make rational decisions about how to
allocate scarce resources and are motivated by self interest
-Most college students work outside of school, but they typically work at jobs
unrelated to their future career plans, i.e. at restaurants or other part-time
jobs. Those students delay the beginning of their careers in order to attend
college. For those students, what is the opportunity costs of attending
college? - -the income and work experience they would have earned by
beginning their careers earlier
-Which of the following is not a fundamental economic question that all
societies must answer? - -At what price will goods and services be sold
-In the US, what is the primary resource allocation mechanism? - -the
market
-Which of the following sets of factors determine the production possibilities
frontier for a given country over a given period of time? - -the resources it
has available to it and its level of technology
-If the production possibilities frontier for a given country increased (i.e.
shifted up and to the right), what would this mean? - -the country could
produce more goods and services
-If a country is producing at a point on its production possibilities frontier
and it wanted to produce more of one good, it must also - --reallocate
resources to the good it wants to produce more
-produce less of some other good
- incur an opportunity cost by changing what it produces
All of the Above
-In 2008, farmers in the US began to grow more corn, in response to rising
corn prices. The opportunity costs of this decision was - -the value of other
crops (i.e. soybeans) that farmers could have grown instead
Choice/35 Q’s and A’s
In economics, we assume that our wants and needs are ___________ our
ability to satisfy them - -greater than
-Which of the following best describes what economists assume is true
about human behavior? - -People make rational decisions about how to
allocate scarce resources and are motivated by self interest
-Most college students work outside of school, but they typically work at jobs
unrelated to their future career plans, i.e. at restaurants or other part-time
jobs. Those students delay the beginning of their careers in order to attend
college. For those students, what is the opportunity costs of attending
college? - -the income and work experience they would have earned by
beginning their careers earlier
-Which of the following is not a fundamental economic question that all
societies must answer? - -At what price will goods and services be sold
-In the US, what is the primary resource allocation mechanism? - -the
market
-Which of the following sets of factors determine the production possibilities
frontier for a given country over a given period of time? - -the resources it
has available to it and its level of technology
-If the production possibilities frontier for a given country increased (i.e.
shifted up and to the right), what would this mean? - -the country could
produce more goods and services
-If a country is producing at a point on its production possibilities frontier
and it wanted to produce more of one good, it must also - --reallocate
resources to the good it wants to produce more
-produce less of some other good
- incur an opportunity cost by changing what it produces
All of the Above
-In 2008, farmers in the US began to grow more corn, in response to rising
corn prices. The opportunity costs of this decision was - -the value of other
crops (i.e. soybeans) that farmers could have grown instead
