Associated with every decision.

People choose to do something:

When they believe the benefits outweigh the costs of the decision

In a Mixed Market Economy, who answers what goods and services shall be produced?

The government produces goods that are not produced by the private sector.

Which of the following is not one of the three fundamental questions?

Where will the good and services be produced?

Which of the following is considered a microeconomics issue?

Apple releases a new version of the iPhone

A rational choice is one that:

involves the use of strategic decision making in an effort to reach a goal.

Which of the following best describes the study of economics?

Economics studies how individuals and groups manage scarce resources.

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Microeconomics Practice Questions Midterm#1

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Questions 15

Answers

1
Disney World decides to charge local residents a lower price than other park visitors. What type of economics is this?
Both
Microeconomics
Macroeconomics
Neither Micro or Macro
2
Which of the following Factors of Production is the tools, machinery, and factories used to make things?
Labor
Capital
Entrepreneurship
Land
3
Trade-offs are:
Do not exist if we receive something for free.
can be avoided through economic planning.
Associated with every decision.
always results in market-failure
4
Decisions about how to allocate resources are made by:
All of the above
Individuals
Governments
Businesses
5
People choose to do something:
When they believe it won't harm anyone else and will better themselves.
When they believe the costs outweigh the benefits of the decision
When they believe their decisions cannot be questioned by anyone else.
When they believe the benefits outweigh the costs of the decision
6
Individuals, firms, and societies are limited in the amount of goods and services they can produce. This is a result of
Scarcity
Irrational behaviour
Unemployment
Waste
7
In a Mixed Market Economy, who answers what goods and services shall be produced?
The government produces goods that are not produced by the private sector.
Determined by the ruling authority or government.
Determined by the power of demand or consumer spending habits.
The producer is the one who decides this answer.
8
Capital Goods are used to make other goods.
True
False
9
Which point of the PPF graph shows an inefficiency?
Point A
Point Y
Point X
Point C
10
Marginal benefit is the maximum amount a consumer will pay for an additional good or service.
True
False
11
Which of the following is not one of the three fundamental questions?
How will the goods and services be produced?
What goods and servcies will be produced?
Where will the good and services be produced?
Who will receive the goods and services?
12
Which of the following is considered a microeconomics issue?
United State's growth rate in the last year.
Apple releases a new version of the iPhone
The unemployment rate in Canada from 2010-2015
All the above are examples of microeconomics issues
13
Scarcity is a situation in which limited wants exceed the unlimited resources available to full those wants.
False
True
14
A rational choice is one that:
is usually optimized when decision makers are poorly informed about options
does not involve self-interest behavior.
involves the use of strategic decision making in an effort to reach a goal.
allows individuals to reach their goals.
15
Which of the following best describes the study of economics?
Economics studies how people maximize returns in the stock market.
Economics studies how individuals and groups manage scarce resources.
Economics studies how governments determine appropriate tax rates.
Economics studies how the Federal Reserve handles fluctuation in bussiness.

Microeconomics Practice Questions Midterm#1 Flashcards | StudBud