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1. Whichbofbthebfollowingbbestbdescribesbthebthreebfundamentalbeconomicbquestions?
a. hatbtobproduce,bwhenbtobproduce,bandbwherebtobproduce.
b. Whatbtimebtobproduce,bwhatbplacebtobproduce,bandbhowbtobproduce.
c. Whatbtobproduce,bwhenbtobproduce,bandbforbwhombtobproduce.
d. Whatbtobproduce,bhowbtobproduce,bandbforbwhombtobproduce.
ANSWER:b d
POINTS: 1

2. Whichbofbthebfollowingbisbnotbonebofbthebthreebfundamentalbeconomicbquestions?
a. Whatbhappensbwhenbyoubaddbtoborbsubtractbfrombabcurrentbsituation?
b. Forbwhombtobproduce?
c. Howbtobproduce?
d. Whatbtobproduce?
ANSWER:b a
POINTS: 1

3. Whichbofbthebfollowingbcorrectlyblistsbthebthreebfundamentalbeconomicbquestions?
a. Ifbtobproduce?bWhybtobproduce?bWhenbtobproduce?
b. Ifbtobproduce?bWhatbtobproduce?bHowbtobproduce?
c. Whybtobproduce?bWhatbtobproduce?bHowbtobproduce?
d. Whatbtobproduce?bHowbtobproduce?bForbwhombtobproduce?
ANSWER: d
POINTS: 1
DIFFICULTY:b Easy
TOPICS: ThreebFundamentalbEconomicbQuestions
KEYWORDS:b Bloom's:bComprehension

4. Threebbasicbdecisionsbmustbbebmadebbyballbeconomies.bWhatbarebthey?
a. Howbmuchbwillbbebproduced,bwhenbitbwillbbebproduced,bandbhowbmuchbitbwillbcost.
b. Whatbthebpricebofbeachbgoodbwillbbe,bwhobwillbproducebeachbgood,bandbwhobwillbconsumebeachbgood.
c. Whatbwillbbebproduced,bhowbgoodsbwillbbebproduced,bandbforbwhombgoodsbwillbbebproduced.
d. Howbthebopportunitybcostbprinciplebwillbbebapplied,bifbandbhowbtheblawbofbcomparativebadvantagebwillbbeb
utilized,bandbwhetherbthebproductionbpossibilitiesbconstraintbwillbapply.
ANSWER: c
POINTS: 1
DIFFICULTY:b Easy
TOPICS: ThreebFundamentalbEconomicbQuestions
KEYWORDS:b Bloom's:bComprehension

5. Becausebofbthebproblembofbscarcity,beachbeconomicbsystembmustbmakebwhichbofbthebfollowingbchoices?
a. Howbtobproduce? b.bWhatbtobproduce?
c.bForbwhombtobproduce? d.bAllbofbthese.
ANSWER: d
POINTS: 1
DIFFICULTY:b Easy
TOPICS: ThreebFundamentalbEconomicbQuestions

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KEYWORDS:b Bloom's:bComprehension

6. Whichbfundamentalbeconomicbquestionbisbmostbcloselybrelatedbtobthebissuesbofbincomebdistributionbandbpoverty?
a. ThebWhatbtobProducebquestion. b.bThebWhybtobProducebquestion.
c.bThebHowbtobProducebquestion. d.bThebForbWhombtobProducebquestion.
ANSWER: d
POINTS: 1
DIFFICULTY:b Moderate
TOPICS: ThreebFundamentalbEconomicbQuestions
KEYWORDS:b Bloom's:bComprehension

7. Whichbfundamentalbeconomicbquestionbrequiresbsocietybtobchoosebthebtechnologicalbandbresourcebmixbusedbtobproduceb
goods?
a. ThebWhatbtobProducebquestion. b.bThebWhybtobProducebquestion.
c.bThebHowbtobProducebquestion. d.bThebForbWhombtobProducebquestion.
ANSWER: c
POINTS: 1
DIFFICULTY:b Moderate
TOPICS: ThreebFundamentalbEconomicbQuestions
KEYWORDS:b Bloom's:bComprehension

8. Opportunitybcost:
a. representsbthebbestbalternativebsacrificedbforbabchosenbalternative.
b. hasbnobrelationshipbtobthebvariousbalternativesbthatbmustbbebgivenbupbwhenbabchoicebisbmadebinbtheb
contextbofbscarcity.
c. representsbthebworstbalternativebsacrificedbforbabchosenbalternative.
d. Representsballbpossiblebalternativesbsacrificedbforbabchosenbalternative.
ANSWER:b a
POINTS: 1

9. Thebopportunitybcostbofbanbactionbis:
a. thebmonetarybpaymentbthebactionbrequired.
b. thebtotalbtimebspentbbyballbpartiesbinbcarryingboutbthebaction.
c. thebvaluebofbthebbestbopportunitybthatbmustbbebsacrificedbinborderbtobtakebthebaction.
d. thebcostbofballbalternativebactionsbthatbcouldbhavebbeenbtaken,baddedbtogether.
ANSWER: c
POINTS: 1
DIFFICULTY:b Moderate
TOPICS: OpportunitybCost
KEYWORDS:b Bloom's:bComprehension

10. Thebhighestbvaluedbalternativebthatbmustbbebgivenbupbinborderbtobchoosebanboptionbisbcalledbthe:
a. opportunitybcost. b.butilitybcost.
c.bscarcitybexpense. d.bdisutilityboption.
ANSWER: a
POINTS: 1
DIFFICULTY:b Easy
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TOPICS: OpportunitybCost
KEYWORDS:b Bloom's:bKnowledge

11. Whichbofbthebfollowingbsayingsbbestbreflectsbthebconceptbofbopportunitybcost?
a. "Youbcan'tbteachbanboldbdogbnewbtricks." b.b"Therebisbnobsuchbthingbasbabfreeblunch."
c.b"Ibhavebabbaker'sbdozen." d.b"There'sbnobbusinessblikebshowbbusiness."
ANSWER: b
POINTS: 1
DIFFICULTY:b Moderate
TOPICS: OpportunitybCost
KEYWORDS:b Bloom's:bComprehension

12. Thebopportunitybcostbtobabcitybforbusingblocalbtaxbrevenuesbtobconstructbabnewbparkbisbthe:
a. bestbalternativebforegonebbybbuildingbthebpark.
b. dollarbcostbofbconstructingbthebnewbpark.
c. dollarbcostbofbtheboldbpark.
d. increasedbtaxesbnecessarybtobpaybforbmaintenancebofbthebnewbpark.
ANSWER: a
POINTS: 1
DIFFICULTY:b Easy
TOPICS: OpportunitybCost
KEYWORDS:b Bloom's:bComprehension

13. Abgoodborbservicebthatbisbforgonebbybchoosingbonebalternativeboverbanotherbisbcalledba(n):
a. explicitbcost. b.bopportunitybcost.
c.bhistoricalbcost. d.baccountingbcost.
ANSWER: b
POINTS: 1
DIFFICULTY:b Easy
TOPICS: OpportunitybCost
KEYWORDS:b Bloom's:bKnowledge

14. Supposebthatbthebalternativebusesbofbanbhourbofbyourbtimebinbthebevening,brankedbfrombbestbtobworst,bareb(1)bstudybe
conomics,b(2i)bwatchbtwobhalf-
hourbTVbsitcoms,b(3)bplaybpool,bandb(4)bjogbaroundbtown.bYoubcanbonlybchoosebonebactivity.bWhatbisbthebopportunityb
costbofbstudyingbeconomicsbforbonebhour,bgivenbthisbinformation?
a. Joggingbaroundbtown.
b. Watchingbtwobhalf-hourbTVbsitcoms.
c. Playingbpool.
d. Thebsumbofbwatchingbtwobhalf-hourbTVbsitcoms,bplayingbpool,bandbdoingbyourblaundry.
ANSWER:b b
POINTS: 1

15. Opportunitybcostbisbthe:
a. costbincurredbwhenbonebfailsbtobtakebadvantagebofbanbopportunity.
b. pricebpaidbforbgoodsbandbservices.
c. costbofbthebbestboptionbforgonebasbabresultbofbchoosingbanbalternativeboption.
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d. undesirablebaspectsbofbanboption.




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