D358 STUDY GUIDE QUESTIONS 1–5 (LATEST VERSION
2024/2025) – 100% VERIFIED ANSWERS || 100%
GUARANTEED PASS <RECENT VERSION>
Module 1: Introductory Concepts and Key Ideas
1. What is the fundamental economic problem that all societies face?
A) High unemployment
B) The scarcity of resources relative to human wants
C) Rising inflation
D) Environmental pollution
2. What does the term "opportunity cost" refer to?
A) The financial cost of a product
B) The value of the next best alternative forgone when a choice is made
C) The total cost of production
D) The cost of saving money
3. The phrase "there's no such thing as a free lunch" is used to illustrate
which core economic concept?
A) Sunk Cost
B) Opportunity Cost
C) Marginal Cost
D) Fixed Cost
4. What do points inside a Production Possibilities Curve (PPC) represent?
A) Efficient use of resources
B) Unattainable combinations of goods
C) Inefficient or unemployed resources
D) Economic growth
5. An outward shift of the entire Production Possibilities Curve (PPC) is
caused by:
A) A decrease in unemployment
, B) An improvement in technology or an increase in resources
C) A shift from producing capital goods to consumer goods
D) Inflation
6. The law of increasing opportunity cost explains why the PPC is typically:
A) A straight line
B) Bowed outward (concave)
C) Bowed inward (convex)
D) Vertical
7. Which branch of economics focuses on the behavior of individual actors
like households and firms?
A) Macroeconomics
B) Microeconomics
C) Normative economics
D) International economics
8. The study of economy-wide phenomena like inflation and unemployment
is known as:
A) Microeconomics
B) Macroeconomics
C) Positive economics
D) Managerial economics
9. A positive economic statement is:
A) A value judgment about what ought to be
B) A claim that can be tested with data
C) Always true
D) Based on opinion
10.Which of the following is a normative statement?
A) The unemployment rate is 5%.
B) When the price rises, quantity demanded falls.
C) The government should raise the minimum wage.
D) Exports increased last year.
, Module 2: Supply, Demand, and Markets
11.The law of demand states that, other things equal:
A) As price increases, quantity demanded increases.
B) As price increases, quantity demanded decreases.
C) As income increases, demand decreases.
D) As price decreases, demand decreases.
12.A movement along a fixed demand curve for coffee is caused by a change
in:
A) Consumer income
B) The price of tea (a substitute)
C) The price of coffee itself
D) Consumer tastes
13.If coffee and tea are substitutes, an increase in the price of coffee will lead
to:
A) A decrease in the demand for tea.
B) An increase in the demand for tea.
C) A decrease in the quantity demanded of tea.
D) No change in the demand for tea.
14.For most goods, if consumer income increases, what happens to the
demand?
A) Demand decreases
B) Demand increases
C) Demand stays the same
D) The demand curve becomes vertical
15.The law of supply states that, other things equal:
A) As price increases, quantity supplied increases.
B) As price increases, quantity supplied decreases.
2024/2025) – 100% VERIFIED ANSWERS || 100%
GUARANTEED PASS <RECENT VERSION>
Module 1: Introductory Concepts and Key Ideas
1. What is the fundamental economic problem that all societies face?
A) High unemployment
B) The scarcity of resources relative to human wants
C) Rising inflation
D) Environmental pollution
2. What does the term "opportunity cost" refer to?
A) The financial cost of a product
B) The value of the next best alternative forgone when a choice is made
C) The total cost of production
D) The cost of saving money
3. The phrase "there's no such thing as a free lunch" is used to illustrate
which core economic concept?
A) Sunk Cost
B) Opportunity Cost
C) Marginal Cost
D) Fixed Cost
4. What do points inside a Production Possibilities Curve (PPC) represent?
A) Efficient use of resources
B) Unattainable combinations of goods
C) Inefficient or unemployed resources
D) Economic growth
5. An outward shift of the entire Production Possibilities Curve (PPC) is
caused by:
A) A decrease in unemployment
, B) An improvement in technology or an increase in resources
C) A shift from producing capital goods to consumer goods
D) Inflation
6. The law of increasing opportunity cost explains why the PPC is typically:
A) A straight line
B) Bowed outward (concave)
C) Bowed inward (convex)
D) Vertical
7. Which branch of economics focuses on the behavior of individual actors
like households and firms?
A) Macroeconomics
B) Microeconomics
C) Normative economics
D) International economics
8. The study of economy-wide phenomena like inflation and unemployment
is known as:
A) Microeconomics
B) Macroeconomics
C) Positive economics
D) Managerial economics
9. A positive economic statement is:
A) A value judgment about what ought to be
B) A claim that can be tested with data
C) Always true
D) Based on opinion
10.Which of the following is a normative statement?
A) The unemployment rate is 5%.
B) When the price rises, quantity demanded falls.
C) The government should raise the minimum wage.
D) Exports increased last year.
, Module 2: Supply, Demand, and Markets
11.The law of demand states that, other things equal:
A) As price increases, quantity demanded increases.
B) As price increases, quantity demanded decreases.
C) As income increases, demand decreases.
D) As price decreases, demand decreases.
12.A movement along a fixed demand curve for coffee is caused by a change
in:
A) Consumer income
B) The price of tea (a substitute)
C) The price of coffee itself
D) Consumer tastes
13.If coffee and tea are substitutes, an increase in the price of coffee will lead
to:
A) A decrease in the demand for tea.
B) An increase in the demand for tea.
C) A decrease in the quantity demanded of tea.
D) No change in the demand for tea.
14.For most goods, if consumer income increases, what happens to the
demand?
A) Demand decreases
B) Demand increases
C) Demand stays the same
D) The demand curve becomes vertical
15.The law of supply states that, other things equal:
A) As price increases, quantity supplied increases.
B) As price increases, quantity supplied decreases.
