ECON 1580 UPDATED Questions and CORRECT Answers

ECON 1580 UPDATED Questions and
CORRECT Answers
A/an _______ does not pose the problem of scarcity; one use of the good is not an alternative to
another use. - CORRECT ANSWER - free good


The Case in Point on the oil extraction suggests that one reason oil may become more costly is
that:
Select one:
a. we will have to give up more and more valuable alternatives to extract oil.
b. speculation is likely to drive up oil prices.
c. oil producers are likely to become more greedy in the future.
d. actually, the Case suggests that oil extraction is likely to become less costly and the future. -
CORRECT ANSWER - a. we will have to give up more and more valuable alternatives to
extract oil.


The BEST example of making a choice at the margin is:
Select one:
a. buying a new car.
b. quitting your job.
c. a coffee drinker drinking another cup of coffee.

d. attending college. - CORRECT ANSWER - c. a coffee drinker drinking another cup of
coffee.


The study of a single firm and how it determines prices would fall under:
Select one:
a. macroeconomics.
b. microeconomics.
c. the study of inflation.

d. normative economics. - CORRECT ANSWER - b. microeconomics.