AS Introduction to Micro Review

Question 1

Which of the following is a distinguishing feature of a command system?

Accepted Answer

Central planning

Question 2

Which of the following violates the economic concept of matching MB with MC in test taking?

Accepted Answer

Most grades are B-; I will only study Econ where I have an A

Question 3

Examples of command economies are

Accepted Answer

Cuba & North Korea

Question 4

Even though local newspapers are inexpensive, people rarely buy more than 1 per day. This fact:

Accepted Answer

Implies that the MB of reading a 2nd newspaper < the MC

Question 5

Which of the following is an example of capital?

Accepted Answer

A construction crane

Question 6

For the data in the table below, increasing opportunity costs is reflected in the fact that

Accepted Answer

Constant amt. of capital gds. are lost to incr. consumer gds

Question 7

To be considered scarce, an economic resource must be

Accepted Answer

Desirable, Useful, and Limited

Question 8

Which of the following is NOT a factor of production?

Accepted Answer

Free Goods

Question 9

Important characteristics of the Market Economy include

Accepted Answer

I, II, III, IV

Question 10

A rational decision maker will choose to act only if

Accepted Answer

Marginal benefit ≥ marginal cost of the action

Question 11

Which of the following is true of the concept of increasing opportunity costs?

Accepted Answer

making more of 1 good means other resources are sacrificed

Question 12

If the country is producing at Point C, it can produce more computers by:

Accepted Answer

Moving to point D

Question 13

Which of the following would not be considered one of society's economic resources?

Accepted Answer

Money

Question 14

A recurring theme in economics is

Accepted Answer

People face limited resources with unlimited wants

Question 15

An opportunity cost is entailed in which of the following situations?

Accepted Answer

I, II, & III

Question 16

The assertion that "There is no free lunch" means that

Accepted Answer

all prod. uses scarce resources & sacrifices alt. goods

Question 17

The two general types of economic systems that exist today are

Accepted Answer

Market systems & command systems

Question 18

Which of the following would cause a leftward (inward) shift of the PPC?

Accepted Answer

A decrease in captial equipment

Question 19

The division of labor means that

Accepted Answer

workers specialize in various production tasks

Question 20

Economics is characterized as a Social Science instead of a "hard" science because it

Accepted Answer

Studies individuals & their decision making processes

Question 21

The output of an economic system is commonly divided into what 2 categories?

Accepted Answer

Goods & services

Question 22

According to the theory of comparative advantage, a good should be produced where

Accepted Answer

Its opportunity costs are least

Question 23

How might point E be attained?

Accepted Answer

If improve. in tech occurred in computer OR farm sectors

Question 24

Which of the following is a land resource?

Accepted Answer

Natural gas

Question 25

Which of the following is a distinguishing feature of a market system?

Accepted Answer

Wide-spread private ownership of capital

Question 26

SIA inherited a large mansion and plans to use it for faculty parties. The cost to SIA is:

Accepted Answer

Both B and C

Question 27

Which of the following lists includes only capital resources (no labor or land resources)?

Accepted Answer

rental cars, computers at the car rental agency

Question 28

Which of the following statements about the PPC is true?

Accepted Answer

Relative poisition of C & D reflect production alternatives

Question 29

Unemployment and/or productive inefficiencies

Accepted Answer

are both illustrated by a point inside the PPC

Question 30

The term ceteris paribus means:

Accepted Answer

III only

Question 31

Which of the following would cause an outward or rightward shift of the PPC?

Accepted Answer

An increase in capital equipment

Question 32

The value of the best alternative forgone when a decision is made defines

Accepted Answer

Opportunity Cost

Question 33

Adam Smith's economic theory is called

Accepted Answer

The Invisible Hand

Question 34

Now that Bob only packages burgers and Sue the fries, they can serve twice as many. This is

Accepted Answer

Comparative Advantage

Question 35

The PPC of the country would most likely shift to the right if current production was at

Accepted Answer

Point C

Question 36

Command economy characteristics include

Accepted Answer

I, II only

Question 37

Which of the following is one of the Four Fundamental Questions?

Accepted Answer

What goods and services will be produced?

Question 38

Of the three economic systems, this system allows people more freedom and choice:

Accepted Answer

IV & V only

Question 39

To be considered scarce, an economic resource must be

Accepted Answer

Useful, desirable, and limited

Question 40

Which of the following goods can be considered scarce?

Accepted Answer

Water

Question 41

In the table below, a total output of 6 units of capital goods and 4 units of consumer goods:

Accepted Answer

None, it would be inside the curve

Question 42

The study of economics is primarily concerned with which of the following?

Accepted Answer

Allocation of scarce resources, given unlimited wants

Question 43

Which problems do all economic systems face?

Accepted Answer

scarcity

Question 44

Economists measure the true cost of a good or service by its

Accepted Answer

Opportunity cost

Question 45

Which of the following equations best defines the economic problem of scarcity?

Accepted Answer

Wants > Resources

Question 46

Which of the following is true if the PPC is concave to the origin?

Accepted Answer

As more of 1 is made, more & more of the other is given up

AS Introduction to Micro Review

Questions 46

AS Introduction to Micro Review

Questions 46