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Published by:
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© 2013 by Flat World Knowledge, Inc. All rights reserved. Your use of this work is subject
to the License Agreement available here http://www.flatworldknowledge.com/legal. No part
of this work may be used, modified, or reproduced in any form or by any means except as
expressly permitted under the License Agreement.
©2013 Flat World Knowledge, Inc. 1
, Chapter 1
Economics: The Study of Choice
Multiple Choice
1. The basic concern of economics is to:
A) keep business firms from losing money.
B) prove that capitalism is better than socialism.
C) study the choices people make.
D) use unlimited resources to produce goods and services to satisfy limited wants.
Ans: C
2. Economics, generally speaking, is primarily concerned with:
A) the operation of the bond and stock markets.
B) the issues of income inequality or income equality.
C) how people choose among the alternatives available to them.
D) ceteris paribus, the scientific method, and the margin.
Ans: C
3. Economics is a:
A) social science that studies goods with no alternative uses.
B) natural science that studies goods with no alternative uses.
C) social science concerned chiefly with how people choose among alternatives.
D) social science concerned chiefly with reasons why society has unlimited resources.
Ans: C
4. The study of how people choose among the alternatives available to them is the:
A) definition of economics.
B) model of demand.
C) theory of opportunity costs.
D) method of distinguishing between microeconomics and macroeconomics.
Ans: A
©2013 Flat World Knowledge, Inc. 2
,5. According to the textbook, economics is a:
A) social science.
B) study of business decisions, not social decisions.
C) part of operations and management science.
D) part of humanities.
Ans: A
6. Economics is a:
A) social science that deals with making choices among alternatives.
B) natural science that concerns itself with allocating relatively scarce resources among
alternative ends.
C) science that has no theories or models based on the scientific method.
D) humanities course that mainly concerns itself with limited wants versus unlimited
resources.
Ans: A
7. When we are forced to make choices we are facing the concept of:
A) ceteris paribus.
B) free goods.
C) scarcity.
D) the margin.
Ans: C
8. Scarcity exists when:
A) a choice must be made among two or more alternatives.
B) we face the notion of "all other things unchanged."
C) countries and people find themselves facing poverty.
D) the notions of normative economics come into play.
Ans: A
9. Scarcity in economics means:
A) not having sufficient resources to produce all the goods and services we want.
B) the wants of people are limited.
C) there must be poor people in rich countries.
©2013 Flat World Knowledge, Inc. 3
, D) economists are clearly not doing their jobs.
Ans: A
10. A scarce resource is one that:
A) has two or more alternative uses.
B) exhibits the basic properties of a free good.
C) is confronted only under socialist conditions.
D) has an unlimited supply.
Ans: A
11. A key theme fundamental to all of economics is:
A) there are limited wants.
B) we are a rich country but are simply not aware of it.
C) people have unlimited wants facing limited means to satisfy them.
D) there are unlimited resources.
Ans: C
12. A tradeoff between two economic goals means that:
A) if achievement of one increases, then achievement of the other must increase.
B) if achievement of one decreases, then achievement of the other must decrease.
C) if you achieve more of one, you will achieve less of the other.
D) the goals are fully compatible.
Ans: C
13. The opportunity cost of going to a movie is:
A) the money spent on the ticket only.
B) all of the other movies that could have been seen instead.
C) the time spent in the theatre only.
D) the next best use of the time and the money spent.
Ans: D
©2013 Flat World Knowledge, Inc. 4
Published by:
Flat World Knowledge, Inc.
© 2013 by Flat World Knowledge, Inc. All rights reserved. Your use of this work is subject
to the License Agreement available here http://www.flatworldknowledge.com/legal. No part
of this work may be used, modified, or reproduced in any form or by any means except as
expressly permitted under the License Agreement.
©2013 Flat World Knowledge, Inc. 1
, Chapter 1
Economics: The Study of Choice
Multiple Choice
1. The basic concern of economics is to:
A) keep business firms from losing money.
B) prove that capitalism is better than socialism.
C) study the choices people make.
D) use unlimited resources to produce goods and services to satisfy limited wants.
Ans: C
2. Economics, generally speaking, is primarily concerned with:
A) the operation of the bond and stock markets.
B) the issues of income inequality or income equality.
C) how people choose among the alternatives available to them.
D) ceteris paribus, the scientific method, and the margin.
Ans: C
3. Economics is a:
A) social science that studies goods with no alternative uses.
B) natural science that studies goods with no alternative uses.
C) social science concerned chiefly with how people choose among alternatives.
D) social science concerned chiefly with reasons why society has unlimited resources.
Ans: C
4. The study of how people choose among the alternatives available to them is the:
A) definition of economics.
B) model of demand.
C) theory of opportunity costs.
D) method of distinguishing between microeconomics and macroeconomics.
Ans: A
©2013 Flat World Knowledge, Inc. 2
,5. According to the textbook, economics is a:
A) social science.
B) study of business decisions, not social decisions.
C) part of operations and management science.
D) part of humanities.
Ans: A
6. Economics is a:
A) social science that deals with making choices among alternatives.
B) natural science that concerns itself with allocating relatively scarce resources among
alternative ends.
C) science that has no theories or models based on the scientific method.
D) humanities course that mainly concerns itself with limited wants versus unlimited
resources.
Ans: A
7. When we are forced to make choices we are facing the concept of:
A) ceteris paribus.
B) free goods.
C) scarcity.
D) the margin.
Ans: C
8. Scarcity exists when:
A) a choice must be made among two or more alternatives.
B) we face the notion of "all other things unchanged."
C) countries and people find themselves facing poverty.
D) the notions of normative economics come into play.
Ans: A
9. Scarcity in economics means:
A) not having sufficient resources to produce all the goods and services we want.
B) the wants of people are limited.
C) there must be poor people in rich countries.
©2013 Flat World Knowledge, Inc. 3
, D) economists are clearly not doing their jobs.
Ans: A
10. A scarce resource is one that:
A) has two or more alternative uses.
B) exhibits the basic properties of a free good.
C) is confronted only under socialist conditions.
D) has an unlimited supply.
Ans: A
11. A key theme fundamental to all of economics is:
A) there are limited wants.
B) we are a rich country but are simply not aware of it.
C) people have unlimited wants facing limited means to satisfy them.
D) there are unlimited resources.
Ans: C
12. A tradeoff between two economic goals means that:
A) if achievement of one increases, then achievement of the other must increase.
B) if achievement of one decreases, then achievement of the other must decrease.
C) if you achieve more of one, you will achieve less of the other.
D) the goals are fully compatible.
Ans: C
13. The opportunity cost of going to a movie is:
A) the money spent on the ticket only.
B) all of the other movies that could have been seen instead.
C) the time spent in the theatre only.
D) the next best use of the time and the money spent.
Ans: D
©2013 Flat World Knowledge, Inc. 4
