TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
ECON 100 Quiz Questions with Correct
Answers | Verified and Updated
The overriding reason why households and societies face many decisions is that:
(a) resources are scarce
(b) goods and services are not scarce
(c) incomes fluctuate with business cycles
(d) people, by nature, tend to disagree - Answer✔️✔️-( a) resources are scarce
Which of the following is a decision that economists study?
(a) how much people work
(b) what people buy
(c) how much money people save
(d) All of the above are correct - Answer✔️✔️-(d) All of the above are correct
The adage, "There is no such thing as a free lunch," means:
(a) even people on welfare have to pay for food
(b) the cost of living is always increasing
(c) people face tradeoffs
(d) all costs are included in the price of a product - Answer✔️✔️-(c) people face tradeoffs
1/56
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Sophia is planning her activities for a hot summer day. She would like to go to the local
swimming pool and see the latest blockbuster movie, but because she can only get
tickets to the movie for the same time that the pool is open, she can only choose one
activity. This illustrates the basic principle that:
(a) people response to incentives
(b) rational people think at the margin
(c) people face tradeoffs
(d) improvements in efficiency sometimes come at the expense of equality - Answer✔️✔️-
(c) people face tradeoffs
A tradeoff exists between a clean environment and a higher level of income in that:
(a) studies show that individuals with higher levels of income pollute less than low-
income individuals
(b) efforts to reduce pollution typically are not completely successful
(c) laws that reduce pollution raise costs of production and reduce incomes
(d) employing individuals to clean up pollution causes increases in employment and
income - Answer✔️✔️-(c) laws that reduce pollution raise costs of production and reduce
incomes
Efficiency:
2/56
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
(a) and equality both refer to how much a society can produce with its resources
(b) and equality both refer to how fairly the benefits from using resources are distributed
between members of a society
(c) refers to how much a society can produce with its resources. Equality refers to how
evenly the benefits from using resources are distributed among members of society
(d) refers to how evenly the benefits from using resources are distributed between
members of society. Equality refers to how much a society can produce with its
resources - Answer✔️✔️-(c) refers to how much a society can produce with its resources.
Equality refers to how evenly the benefits from using resources are distributed among
members of society
The opportunity cost of an item is:
(a) the number of hours needed to earn the money to buy an item
(b) what you give up to get that item
(c) usually less than the dollar value of an item
(d) the dollar value of an item - Answer✔️✔️-(b) what you give up to get that item
The opportunity cost of going to college is:
(a) the total spent on food, clothing, books, transportation, tuition, lodging, and other
expenses
(b) the value of the best opportunity a student gives up to attend college
3/56
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
(c) zero for students who are fortunate enough to have all of their college expenses paid
by someone else
(d) zero, since a college education will allow a student to earn a larger income after
graduation - Answer✔️✔️-(b) the value of the best opportunity a student gives up to
attend college
Rational people make decisions at the margin by:
(a) following marginal traditions
(b) behaving in a random fashion
(c) thinking in black-and-white terms
(d) comparing marginal costs and marginal benefits - Answer✔️✔️-(d) comparing
marginal costs and marginal benefits
A rational decision maker takes an action if and only if:
(a) the marginal benefit of the action exceed the marginal cost of the action
(b) the marginal cost of the action exceeds the marginal benefit of the action
(c) the marginal cost of the actions zero
(d) the opportunity cost of the action is zero - Answer✔️✔️-(a) the marginal benefit of the
action exceed the marginal cost of the action
In a market economy, supply and demand are important because they:
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OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
ECON 100 Quiz Questions with Correct
Answers | Verified and Updated
The overriding reason why households and societies face many decisions is that:
(a) resources are scarce
(b) goods and services are not scarce
(c) incomes fluctuate with business cycles
(d) people, by nature, tend to disagree - Answer✔️✔️-( a) resources are scarce
Which of the following is a decision that economists study?
(a) how much people work
(b) what people buy
(c) how much money people save
(d) All of the above are correct - Answer✔️✔️-(d) All of the above are correct
The adage, "There is no such thing as a free lunch," means:
(a) even people on welfare have to pay for food
(b) the cost of living is always increasing
(c) people face tradeoffs
(d) all costs are included in the price of a product - Answer✔️✔️-(c) people face tradeoffs
1/56
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Sophia is planning her activities for a hot summer day. She would like to go to the local
swimming pool and see the latest blockbuster movie, but because she can only get
tickets to the movie for the same time that the pool is open, she can only choose one
activity. This illustrates the basic principle that:
(a) people response to incentives
(b) rational people think at the margin
(c) people face tradeoffs
(d) improvements in efficiency sometimes come at the expense of equality - Answer✔️✔️-
(c) people face tradeoffs
A tradeoff exists between a clean environment and a higher level of income in that:
(a) studies show that individuals with higher levels of income pollute less than low-
income individuals
(b) efforts to reduce pollution typically are not completely successful
(c) laws that reduce pollution raise costs of production and reduce incomes
(d) employing individuals to clean up pollution causes increases in employment and
income - Answer✔️✔️-(c) laws that reduce pollution raise costs of production and reduce
incomes
Efficiency:
2/56
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
(a) and equality both refer to how much a society can produce with its resources
(b) and equality both refer to how fairly the benefits from using resources are distributed
between members of a society
(c) refers to how much a society can produce with its resources. Equality refers to how
evenly the benefits from using resources are distributed among members of society
(d) refers to how evenly the benefits from using resources are distributed between
members of society. Equality refers to how much a society can produce with its
resources - Answer✔️✔️-(c) refers to how much a society can produce with its resources.
Equality refers to how evenly the benefits from using resources are distributed among
members of society
The opportunity cost of an item is:
(a) the number of hours needed to earn the money to buy an item
(b) what you give up to get that item
(c) usually less than the dollar value of an item
(d) the dollar value of an item - Answer✔️✔️-(b) what you give up to get that item
The opportunity cost of going to college is:
(a) the total spent on food, clothing, books, transportation, tuition, lodging, and other
expenses
(b) the value of the best opportunity a student gives up to attend college
3/56
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
(c) zero for students who are fortunate enough to have all of their college expenses paid
by someone else
(d) zero, since a college education will allow a student to earn a larger income after
graduation - Answer✔️✔️-(b) the value of the best opportunity a student gives up to
attend college
Rational people make decisions at the margin by:
(a) following marginal traditions
(b) behaving in a random fashion
(c) thinking in black-and-white terms
(d) comparing marginal costs and marginal benefits - Answer✔️✔️-(d) comparing
marginal costs and marginal benefits
A rational decision maker takes an action if and only if:
(a) the marginal benefit of the action exceed the marginal cost of the action
(b) the marginal cost of the action exceeds the marginal benefit of the action
(c) the marginal cost of the actions zero
(d) the opportunity cost of the action is zero - Answer✔️✔️-(a) the marginal benefit of the
action exceed the marginal cost of the action
In a market economy, supply and demand are important because they:
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