EPF Test #1 Review (updated)
questions well answered
Marginal thinking is best demonstrated by: - correct answer ✔✔choosing to spend one more
hour studying economics because you think the improvement in your score on the next quiz will
be worth the sacrifice of time.
Elwood, the Longwood mascot, decides to spend an hour playing basketball rather than
studying. His opportunity cost is: - correct answer ✔✔The benefit to his grades from studying
for an hour
Suppose you have a choice of working full-time during the summer or going full-time to
summer school. Summer tuition and books are $2,200. If you worked, you could make $7,000.
Your rent is $3,000 for the summer, regardless of your choice.
The cost of going to summer school is therefore, - correct answer ✔✔$9,200
At Point B in the production possibilities graph shown above, the economy: - correct answer
✔✔is not using its resources efficiently
The circular flow diagram of economic activity is a model of the - correct answer ✔✔flow of
goods, services, and payments between households and firms
A shortage occurs whenever - correct answer ✔✔goods are scarce
The demand curve for a typical good has a(n): - correct answer ✔✔negative slope because
some consumers switch to other goods as the price rises.
questions well answered
Marginal thinking is best demonstrated by: - correct answer ✔✔choosing to spend one more
hour studying economics because you think the improvement in your score on the next quiz will
be worth the sacrifice of time.
Elwood, the Longwood mascot, decides to spend an hour playing basketball rather than
studying. His opportunity cost is: - correct answer ✔✔The benefit to his grades from studying
for an hour
Suppose you have a choice of working full-time during the summer or going full-time to
summer school. Summer tuition and books are $2,200. If you worked, you could make $7,000.
Your rent is $3,000 for the summer, regardless of your choice.
The cost of going to summer school is therefore, - correct answer ✔✔$9,200
At Point B in the production possibilities graph shown above, the economy: - correct answer
✔✔is not using its resources efficiently
The circular flow diagram of economic activity is a model of the - correct answer ✔✔flow of
goods, services, and payments between households and firms
A shortage occurs whenever - correct answer ✔✔goods are scarce
The demand curve for a typical good has a(n): - correct answer ✔✔negative slope because
some consumers switch to other goods as the price rises.
