PRINCIPLES OF
MICROECONOMICS EXAM
QUESTIONS WITH VERIFIED
ACCURATE ANSWERS||A+
GRADED SOLUTION GUIDE
(UPDATE 2026)
If the government provides more education for more people, the cost will be equal to
__________. - answer-The value of the other goods that are forgone in order to provide
more education.
The answer can be found in Chapter 1, Section 1.2, Scarcity: Limited Resources but
Unlimited Wants.
According to economic theory, people are forced to make choices because of
__________. - answer-scarcity
An editorial in the Harpertown Gazette argues that the government ought to abolish the
minimum wage because it lowers employment. This is an example of a(n) __________
economic statement. - answer-normative
In an economic system, which of the following is NOT a typical government activity? -
answer-privatization
What government function or functions promote price steadiness and full employment?
- answer-stabilization
Assume that Indiana levies a tax on gasoline and uses the proceeds to repair roads in
low-income areas. Which government function(s) is (are) being carried out? - answer-
both allocation and redistribution
MICROECONOMICS EXAM
QUESTIONS WITH VERIFIED
ACCURATE ANSWERS||A+
GRADED SOLUTION GUIDE
(UPDATE 2026)
If the government provides more education for more people, the cost will be equal to
__________. - answer-The value of the other goods that are forgone in order to provide
more education.
The answer can be found in Chapter 1, Section 1.2, Scarcity: Limited Resources but
Unlimited Wants.
According to economic theory, people are forced to make choices because of
__________. - answer-scarcity
An editorial in the Harpertown Gazette argues that the government ought to abolish the
minimum wage because it lowers employment. This is an example of a(n) __________
economic statement. - answer-normative
In an economic system, which of the following is NOT a typical government activity? -
answer-privatization
What government function or functions promote price steadiness and full employment?
- answer-stabilization
Assume that Indiana levies a tax on gasoline and uses the proceeds to repair roads in
low-income areas. Which government function(s) is (are) being carried out? - answer-
both allocation and redistribution
