ECON1580: Introduction to Economics
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1. According to the textbook, economics is a: *a. social science*
Ch # 1
2. A/an _______ does not pose the problem of scarcity; *a. free good*
one use of the good is not an alternative to another
use. Ch # 1
3. Water is considered a scarce good rather than a free *a. it has alternative
good because: uses.*
Ch # 1
4. The Case in Point on the oil extraction suggests that *a. we will have to give
one reason oil may become more costly is that: up more and more valu-
able alternatives to extract
oil.*
Ch # 1
5. The opportunity cost of something is: *d. what is given up to ac-
quire it.*
Ch # 1
6. The BEST example of making a choice at the margin is: *c. a coffee drinker drink-
ing another cup of cof-
fee.*
Ch # 1
7. The study of a single firm and how it determines prices *b. microeconomics.*
would fall under:
Ch # 1
, ECON1580: Introduction to Economics
Study online at https://quizlet.com/_8aue99
8. Each of the following statements about the use of *a. models fit the ob-
models in the study of economics is true EXCEPT: served facts exactly.*
Ch # 1
9. Suppose you observe that the sun sets every evening *c. false cause.*
after the six o'clock business report. If you conclude
that the six o'clock business report makes the sun set, Ch # 1
you are guilty of the fallacy of:
10. An example of a normative statement is: *d. Everyone in the coun-
try needs to be covered
by national health insur-
ance.*
Ch # 1
11. Resources from nature that can be used to to produce *b. natural resources.*
other goods and services are called:
Ch # 2
12. Increasing the level of education in the United States *d. lead to workers pos-
will: sessing greater human
capital.*
Ch # 2
13. A person who seeks to earn profits by finding ways to *c. entrepreneur*
organize factors of production is called a/an:
Ch # 2
14. When moving along a production possibilities curve, *c. is measured by the
the opportunity cost to society of getting more of the amount of the other good
good on the horizontal axis: that must be given up.*
, ECON1580: Introduction to Economics
Study online at https://quizlet.com/_8aue99
Ch # 2
15. Efficient production implies that it is: *c. not possible to pro-
duce more of one good
without producing less of
another good.*
Ch # 2
16. In market capitalism: *a. factors of production
are privately owned and
decisions are made pri-
vately.*
Ch # 2
17. Government's role of taxing some citizens and trans- *c. redistributing in-
ferring income to others is considered: come*
Ch # 2
18. Technology is: *a. knowledge that can be
applied to the production
of goods and services.*
Ch # 2
19. In this exhibit (Guns and Butter), the combination of *b. cannot be attained giv-
guns and butter at point H: en the level of technology
and the factors of produc-
tion available.*
Ch # 2 - pic
, ECON1580: Introduction to Economics
Study online at https://quizlet.com/_8aue99
20. If the production possibilities curve were a straight c. no factor of production
line sloping down from left to right, this would sug- has any particular com-
gest that: parative advantage over
other resources.
21. The law of demand implies that: *b. consumers will, all oth-
er things unchanged, buy
more at lower prices.*
Ch # 3
22. A decrease in the price of eggs, all other things un- *d. greater quantity of
changed, will result in a/an: eggs demanded.*
Ch # 3
23. The price of oranges falls. What happens in the market *d. The equilibrium price
for apples, which are a substitute for oranges? and quantity fall.*
Ch # 3
24. After graduation from college you will receive a sub- *d. inferior good.*
stantial increase in your income from a new job. If
you decide that you will purchase more T-bone steak Ch # 3
and less hamburger, then for you hamburger would
be considered a/an:
25. The primary difference between a change in supply *c. a change in quantity
and a change in the quantity supplied is: supplied is a movement
along the supply curve,
and a change in supply is a
shift of the supply curve.*
Study online at https://quizlet.com/_8aue99
1. According to the textbook, economics is a: *a. social science*
Ch # 1
2. A/an _______ does not pose the problem of scarcity; *a. free good*
one use of the good is not an alternative to another
use. Ch # 1
3. Water is considered a scarce good rather than a free *a. it has alternative
good because: uses.*
Ch # 1
4. The Case in Point on the oil extraction suggests that *a. we will have to give
one reason oil may become more costly is that: up more and more valu-
able alternatives to extract
oil.*
Ch # 1
5. The opportunity cost of something is: *d. what is given up to ac-
quire it.*
Ch # 1
6. The BEST example of making a choice at the margin is: *c. a coffee drinker drink-
ing another cup of cof-
fee.*
Ch # 1
7. The study of a single firm and how it determines prices *b. microeconomics.*
would fall under:
Ch # 1
, ECON1580: Introduction to Economics
Study online at https://quizlet.com/_8aue99
8. Each of the following statements about the use of *a. models fit the ob-
models in the study of economics is true EXCEPT: served facts exactly.*
Ch # 1
9. Suppose you observe that the sun sets every evening *c. false cause.*
after the six o'clock business report. If you conclude
that the six o'clock business report makes the sun set, Ch # 1
you are guilty of the fallacy of:
10. An example of a normative statement is: *d. Everyone in the coun-
try needs to be covered
by national health insur-
ance.*
Ch # 1
11. Resources from nature that can be used to to produce *b. natural resources.*
other goods and services are called:
Ch # 2
12. Increasing the level of education in the United States *d. lead to workers pos-
will: sessing greater human
capital.*
Ch # 2
13. A person who seeks to earn profits by finding ways to *c. entrepreneur*
organize factors of production is called a/an:
Ch # 2
14. When moving along a production possibilities curve, *c. is measured by the
the opportunity cost to society of getting more of the amount of the other good
good on the horizontal axis: that must be given up.*
, ECON1580: Introduction to Economics
Study online at https://quizlet.com/_8aue99
Ch # 2
15. Efficient production implies that it is: *c. not possible to pro-
duce more of one good
without producing less of
another good.*
Ch # 2
16. In market capitalism: *a. factors of production
are privately owned and
decisions are made pri-
vately.*
Ch # 2
17. Government's role of taxing some citizens and trans- *c. redistributing in-
ferring income to others is considered: come*
Ch # 2
18. Technology is: *a. knowledge that can be
applied to the production
of goods and services.*
Ch # 2
19. In this exhibit (Guns and Butter), the combination of *b. cannot be attained giv-
guns and butter at point H: en the level of technology
and the factors of produc-
tion available.*
Ch # 2 - pic
, ECON1580: Introduction to Economics
Study online at https://quizlet.com/_8aue99
20. If the production possibilities curve were a straight c. no factor of production
line sloping down from left to right, this would sug- has any particular com-
gest that: parative advantage over
other resources.
21. The law of demand implies that: *b. consumers will, all oth-
er things unchanged, buy
more at lower prices.*
Ch # 3
22. A decrease in the price of eggs, all other things un- *d. greater quantity of
changed, will result in a/an: eggs demanded.*
Ch # 3
23. The price of oranges falls. What happens in the market *d. The equilibrium price
for apples, which are a substitute for oranges? and quantity fall.*
Ch # 3
24. After graduation from college you will receive a sub- *d. inferior good.*
stantial increase in your income from a new job. If
you decide that you will purchase more T-bone steak Ch # 3
and less hamburger, then for you hamburger would
be considered a/an:
25. The primary difference between a change in supply *c. a change in quantity
and a change in the quantity supplied is: supplied is a movement
along the supply curve,
and a change in supply is a
shift of the supply curve.*
