Chapter 1_2: What is Economics?

Thời gian làm bài: 40 phút

Question 1: When a textile company keeps track of its inventory using a computer and its competitor uses a spreadsheet and pencil, they are both answering the ________ question.
a. "where"
b. "what"
c. "for whom"
d. "how"

Question 2: Human capital is
a. machinery that meets or exceeds federal safety standards for use by humans.
b. all capital owned by individuals or corporations, but not by governments.
c. the skill and knowledge of workers.
d. all capital owned by individuals, but not by corporations or governments.

Question 3: Entrepreneurs do all of the following EXCEPT
a. bear risk from business decisions.
b. own all the other resources.
c. come up with new ideas about what, how, when and where to produce.
d. organize labor, land, and capital.

Question 4: To answer the "for whom" question, we study
a. business cycles.
b. technological change.
c. the global economy.
d. income differences.

Question 5: The fact that people with higher incomes get to consume more goods and services addresses the ________ question.
a. "how"
b. "where"
c. "for whom"
d. "when"

Question 6: Which of the following is NOT a factor of production?
a. the water used to cool a nuclear power plant.
b. the wages paid to workers.
c. the effort of farmers raising cattle.
d. the management skill of a small business owner.

Question 7: Which of the following is NOT a factor of production?
a. a share of stock issued by a firm.
b. a new computer used by a small business owner.
c. a tractor used by a wheat farmer.
d. the time worked by elementary school teachers.

Question 8: An autoworker is considered ________ and earns ________.
a. labor; wages
b. labor; rent
c. capital; rent
d. entrepreneurship; wages

Question 9: Overtime worked by a JCPenney associate is considered ________ and earns________.
a. entrepreneurship; profit
b. labor; profit
c. human capital; interest
d. labor; wages

Question 10: When a university decides to add to the football stadium instead of adding to the baseball stadium, it faces the
a. "what" tradeoff.
b. "how" tradeoff.
c. macroeconomic question.
d. "for whom" tradeoff.

Question 11: When a farmer decides to increase the amount of acreage devoted to wheat and grow fewer acres of soybeans, the farmer is facing the
a. "how" tradeoff.
b. microeconomic question.
c. "what" tradeoff.
d. "for whom" tradeoff.

Question 12: When a photographer decides to use a digital camera to take shots versus using film, the photographer is facing the
a. "what" tradeoff.
b. microeconomic question.
c. "for whom" tradeoff.
d. "how" tradeoff.

Question 13: The "how" tradeoff occurs when
a. a firm decides to produce refrigerators instead of dishwashers.
b. we answer the macroeconomic question.
c. the government increases income taxes paid by the rich.
d. a farm uses machinery to pick oranges instead of employing migrant workers.

Question 14: When the government decides to provide tax relief for small businesses while placing higher taxes on large corporations, it is facing the
a. "for whom" tradeoff.
b. "what" tradeoff.
c. "how" tradeoff.
d. macroeconomic question.

Question 15: Because we face scarcity, every choice involves
a. the question "what."
b. money
c. giving up something for nothing.
d. an opportunity cost

Question 16: The term used to emphasize that making choices in the face of scarcity involves a cost is
a. utility cost.
b. opportunity cost.
c. accounting cost.
d. substitution cost.

Question 17: The loss of the highest-valued alternative defines the concept of
a. entrepreneurship.
b. scarcity.
c. marginal benefit.
d. opportunity cost.

Question 18: Opportunity cost means
a. the accounting cost minus the marginal benefit.
b. the highest-valued alternative forgone.
c. the monetary costs of an activity.
d. the accounting cost minus the marginal cost.

Question 19: The opportunity cost of any action is
a. the time required but not the monetary cost.
b. all the possible alternatives forgone.
c. the highest-valued alternative forgone.
d. the monetary cost but not the time required.

Question 20: The opportunity cost of something you decide to get is
a. the amount of money you pay to get it.
b. the highest valued alternative you give up to get it.
c. the lowest valued alternative you give up to get it.
d. all possible alternatives that you give up to get it.

Question 21: The ultimate cost of any choice is
a. the dollars expended.
b. what someone else would be willing to pay.
c. the after-tax cost.
d. the highest-valued alternative forgone.

Question 22: During the summer you have made the decision to attend summer school, which precludes you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000, books and supplies cost $300, and room and board cost $1,000. The opportunity cost of attending summer school is
a. $3,300.
b. $4,300.
c. $6,000.
d. $10,300.

Question 23: On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is
a. working out at the gym, having breakfast with friends, and sleeping late.
b. zero because you do not have to pay money to use the library.
c. working out at the gym.
d. not clear because not enough information is given.

Question 24: You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not report to work where you could have earned $750. The opportunity cost of the vacation is
a. $2,750.
b. $2,000.
c. $750.
d. 1,25

Question 25: When an action is chosen, the highest-valued alternative NOT chosen is called the
a. accounting cost.
b. opportunity cost.
c. implicit cost.
d. explicit cost.

Time Coundown:

ECONOMICS QUIZZES