Econ 203 Quiz 1 || with Complete Solutions.
The Overriding reason as to why households and societies face many decisions is that
A. Resources are scarce
B. Goods and services are not scarce
C. Incomes fluctuate with business cycles
D. People, by nature, tend to disagree correct answers A. Resources are scarce
Economics is the study of
A. how society manages its scarce resources
B. the governments role in society
C. how a market system functions
D. how to increase production correct answers A. how society manages is scarce resources
Economists use the phrase "there is no such thing as a free lunch," to illustrate the principle that
A. inflation almost always results in higher prices over time
B. nothing is free in a market economy
C. making decisions requires trading off one goal against another
D. if something looks too good to be true, it probably is not worth pursuing correct answers C.
making decisions requires trading off one goal against another
Efficiency means that
a. society is conserving resources in order to save them for the future.
b. society's goods and services are distributed equally among society's members.
c. society's goods and services are distributed fairly, though not necessarily equally, among
society's members.
d. society is getting the maximum benefits from its scarce resources. correct answers d. society is
getting the maximum benefits from its scarce resources.
The opportunity cost of an item is
A. the number of hours needed to earn money to buy the item
B. what you give up to get that item
C. usually less than the dollar value of the item
D. the dollar value of the item correct answers b. what you give up to get that item.
Russel spends an hour studying instead of playing tennis. The opportunity cost to him of
studying is
A. the improvement in his grades from studying for the hour
B. the improvement in his grades from studying minus the enjoyment of playing tennis
C. the enjoyment and exercise he would received had he played tennis
The Overriding reason as to why households and societies face many decisions is that
A. Resources are scarce
B. Goods and services are not scarce
C. Incomes fluctuate with business cycles
D. People, by nature, tend to disagree correct answers A. Resources are scarce
Economics is the study of
A. how society manages its scarce resources
B. the governments role in society
C. how a market system functions
D. how to increase production correct answers A. how society manages is scarce resources
Economists use the phrase "there is no such thing as a free lunch," to illustrate the principle that
A. inflation almost always results in higher prices over time
B. nothing is free in a market economy
C. making decisions requires trading off one goal against another
D. if something looks too good to be true, it probably is not worth pursuing correct answers C.
making decisions requires trading off one goal against another
Efficiency means that
a. society is conserving resources in order to save them for the future.
b. society's goods and services are distributed equally among society's members.
c. society's goods and services are distributed fairly, though not necessarily equally, among
society's members.
d. society is getting the maximum benefits from its scarce resources. correct answers d. society is
getting the maximum benefits from its scarce resources.
The opportunity cost of an item is
A. the number of hours needed to earn money to buy the item
B. what you give up to get that item
C. usually less than the dollar value of the item
D. the dollar value of the item correct answers b. what you give up to get that item.
Russel spends an hour studying instead of playing tennis. The opportunity cost to him of
studying is
A. the improvement in his grades from studying for the hour
B. the improvement in his grades from studying minus the enjoyment of playing tennis
C. the enjoyment and exercise he would received had he played tennis
