Principles of Microeconomics Exam
Questions and Answers Graded A+
2025 New Update
Scarcity exists when there is less than an infinite amount of a resource or good -
CORRECT ANSWER-False
Approximately 75 percentage of the world's economies experience scarcity. -
CORRECT ANSWER-False
Economics is the study of how society manages its scarce resources. - CORRECT
ANSWER-True
In most societies resources are allocated by a single central planner - CORRECT
ANSWER-False
Economists use the phrase "There is no such thing as a free lunch," to illustrate
how inflation increases prices - CORRECT ANSWER-False
Henry decides to spend two hours playing golf rather than working at his job
which pays $8 per hour. Henry's tradeoff is nothing, because he enjoys playing golf
more than working - CORRECT ANSWER-False
, Efficiency refers to the size of the economic pie; equity refers to how the pie is
divided - CORRECT ANSWER-True
When government policies such as the welfare system try to help the most needy
members of society, it increases the productivity of the needy in the society -
CORRECT ANSWER-False
When the government redistributes income from the rich to the poor, people work
less and produce fewer goods and services - CORRECT ANSWER-True
In economics, the cost of something is the dollar amount of obtaining it -
CORRECT ANSWER-False
The opportunity cost of going to college is the value of the best opportunity a
student gives up to attend college - CORRECT ANSWER-True
For most students, the largest single cost of a college education is the wages given
up to attend school - CORRECT ANSWER-True
Mallory decides to spend 3 hours working overtime rather than watching a video
with her friends. She earns $8 an hour. Her opportunity cost of working is the $24
she earns working - CORRECT ANSWER-False
Russell spends an hour studying instead of playing tennis. The opportunity cost to
him of studying is the enjoyment and exercise he would have received had he
played tennis - CORRECT ANSWER-True
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Questions and Answers Graded A+
2025 New Update
Scarcity exists when there is less than an infinite amount of a resource or good -
CORRECT ANSWER-False
Approximately 75 percentage of the world's economies experience scarcity. -
CORRECT ANSWER-False
Economics is the study of how society manages its scarce resources. - CORRECT
ANSWER-True
In most societies resources are allocated by a single central planner - CORRECT
ANSWER-False
Economists use the phrase "There is no such thing as a free lunch," to illustrate
how inflation increases prices - CORRECT ANSWER-False
Henry decides to spend two hours playing golf rather than working at his job
which pays $8 per hour. Henry's tradeoff is nothing, because he enjoys playing golf
more than working - CORRECT ANSWER-False
, Efficiency refers to the size of the economic pie; equity refers to how the pie is
divided - CORRECT ANSWER-True
When government policies such as the welfare system try to help the most needy
members of society, it increases the productivity of the needy in the society -
CORRECT ANSWER-False
When the government redistributes income from the rich to the poor, people work
less and produce fewer goods and services - CORRECT ANSWER-True
In economics, the cost of something is the dollar amount of obtaining it -
CORRECT ANSWER-False
The opportunity cost of going to college is the value of the best opportunity a
student gives up to attend college - CORRECT ANSWER-True
For most students, the largest single cost of a college education is the wages given
up to attend school - CORRECT ANSWER-True
Mallory decides to spend 3 hours working overtime rather than watching a video
with her friends. She earns $8 an hour. Her opportunity cost of working is the $24
she earns working - CORRECT ANSWER-False
Russell spends an hour studying instead of playing tennis. The opportunity cost to
him of studying is the enjoyment and exercise he would have received had he
played tennis - CORRECT ANSWER-True
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
