Econ 601: Microeconomics Theory And Analysis Quiz

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  • 1/19 Questions

    Ms. X is getting married this summer. Because Ms. X is so busy teaching her students, she decides to hire Trina, a wedding planner to help her with planning the wedding. A wedding planner is a:

    • Good
    • Service
    • Economy
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About This Quiz

This ECON 601: Microeconomics Theory and Analysis quiz assesses understanding of basic economic concepts like needs, wants, goods, and services. It's designed for learners to differentiate these terms through practical scenarios, enhancing their grasp of microeconomic principles.

Econ 601: Microeconomics Theory And Analysis Quiz - Quiz

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  • 2. 

    Clarissa dropped her phone in the toilet. She goes to the Verizon store and buys a new blackberry curve. Her new phone is a:

    • Good

    • Service

    • Command

    Correct Answer
    A. Good
    Explanation
    The word "good" is the correct answer because it is the most appropriate description for Clarissa's new phone. The other options, "service" and "command," do not accurately describe the phone.

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  • 3. 

    A service is:

    • Something you can physically hold and you own it after you buy it

    • Something you pay someone else to do for you or pay to use for a short period of time

    • Something that is great

    Correct Answer
    A. Something you pay someone else to do for you or pay to use for a short period of time
    Explanation
    The correct answer is "something you pay someone else to do for you or pay to use for a short period of time". This answer accurately describes a service as an action or task that is performed by someone else in exchange for payment. It highlights the temporary nature of a service, indicating that it is not something that you physically hold or own after purchasing.

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  • 4. 

    Erika has a two year old child. Her child has had a fever for three days. Erika decides to take her child to the doctor. Going to the doctor is a:

    • Need

    • Want

    • Market

    Correct Answer
    A. Need
    Explanation
    In this scenario, Erika's child having a fever for three days indicates that there is a medical concern. Taking her child to the doctor is necessary to ensure proper medical attention and treatment. It is not a mere want or a market-driven decision, but a need based on the child's health condition.

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  • 5. 

    Christine owns a dress store in Manhattan. She hires two people to help customers pick out clothes. Her employees are a:

    • Land resource

    • Labor resource

    • Capital resource

    Correct Answer
    A. Labor resource
    Explanation
    The employees hired by Christine to help customers pick out clothes are considered a labor resource. Labor resources refer to the human effort, skills, and knowledge used in the production of goods or services. In this case, the employees provide the necessary labor to assist customers in selecting clothes, thereby contributing to the overall functioning and success of Christine's dress store.

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  • 6. 

    If you had to describe economics in one word, what would the best word be?

    • Needs

    • Money

    • Fun

    Correct Answer
    A. Money
    Explanation
    The best word to describe economics would be "money" because economics is the study of how individuals, businesses, and societies allocate scarce resources to satisfy unlimited wants and needs. Money is the medium of exchange that facilitates economic transactions and plays a crucial role in the functioning of an economy. It is used to measure the value of goods and services, determine prices, and enable trade and economic growth. Without money, the economic system as we know it would not exist.

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  • 7. 

    It is Jay's 15th birthday. Jay is a great baseball player. This year he hopes to get a new bat and glove. The baseball bat and glove are:

    • Needs

    • Wants

    • Economics

    Correct Answer
    A. Wants
    Explanation
    The answer "wants" is correct because Jay hopes to get a new bat and glove for his birthday. These items are not essential for his survival or basic needs, but rather something he desires or wishes to have. This aligns with the concept of wants, which refers to non-essential goods or services that individuals seek to satisfy their preferences or personal desires.

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  • 8. 

    The 6th graders are going on a field trip to see a broadway play. Ms. Borges bought 120 tickets so everyone can see the play. A broadway play is a:

    • Good

    • Service

    • Money

    Correct Answer
    A. Service
    Explanation
    The correct answer is "Service" because a Broadway play is an event or performance that is provided for the entertainment of an audience. It is not a tangible good that can be bought or sold, nor is it directly related to money. In this context, Ms. Borges bought tickets for the students to attend the play, indicating that it is a service that they will experience.

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  • 9. 

    A good is: 

    • Something you can physically hold and you own it after you buy it

    • Something you pay someone else to do for you or pay to use for a short period of time

    • Something that tastes great

    Correct Answer
    A. Something you can physically hold and you own it after you buy it
    Explanation
    The correct answer is "something you can physically hold and you own it after you buy it." This answer accurately defines a good as a tangible item that can be possessed and owned after purchase. It distinguishes goods from services, which involve paying someone else to do something for you or paying to use something temporarily. The answer also excludes the option of "something that tastes great," as taste does not necessarily determine whether something is a good or not.

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  • 10. 

    Quamell owns a farm. On his farm he grows a lot of different vegetables like corn and celery. Corn and celery are:

    • Land resources

    • Labor resources

    • Capital resources

    Correct Answer
    A. Land resources
    Explanation
    Corn and celery are considered land resources because they are grown on the farm, which is a piece of land. Land resources refer to natural resources that are used in agricultural production, such as soil, water, and vegetation. In this case, the land is being utilized to grow corn and celery, making them land resources.

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  • 11. 

    The main different between a need and a want is:

    • A want is more important than a need

    • A need is something you cannot live without and a want is something you can live without

    • People only buy needs

    Correct Answer
    A. A need is something you cannot live without and a want is something you can live without
    Explanation
    The main difference between a need and a want is that a need is something essential for survival or basic well-being, something that an individual cannot live without. On the other hand, a want is something that is not necessary for survival and can be lived without. Needs are typically prioritized over wants as they are fundamental to sustaining life and fulfilling basic human requirements.

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  • 12. 

    Zara owns a sandwich shop. She sells 5 different types of sandwiches. One day, two of her customers told her they wish she had a roast beef sandwich. Zara decided she would put a roast beef sandwich on her menu. What kind of economy does the situation describe?

    • Market economy

    • Command economy

    • Economy

    Correct Answer
    A. Market economy
    Explanation
    The situation described suggests a market economy. In a market economy, decisions about what goods and services to produce are determined by the interactions of buyers and sellers in the marketplace. Zara, as the owner of the sandwich shop, responded to the demands of her customers by adding a roast beef sandwich to her menu. This shows that she is able to make independent decisions based on the preferences and demands of her customers, which is a characteristic of a market economy.

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  • 13. 

    Opportunity cost is:

    • How much money you have to pay for something

    • How much it cost to do something

    • The real cost of purchasing something - it includes the cost of time and any missed opportunities

    Correct Answer
    A. The real cost of purchasing something - it includes the cost of time and any missed opportunities
    Explanation
    Opportunity cost refers to the real cost of purchasing something, taking into account not only the monetary cost but also the cost of time and any missed opportunities. It represents the value of the next best alternative that is forgone when a decision is made. In other words, it is the potential benefit or value that could have been gained from choosing an alternative option.

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  • 14. 

    Mr. Black owns a candy store. He sells 10 different kinds of very sugary candy. Last week, the government sent Mr. Black a letter that said he needed to start selling at least 20 different kinds of candy. What kind of economy does the situation describe?

    • Market economy

    • Command economy

    • Economy

    Correct Answer
    A. Command economy
    Explanation
    The situation described suggests a command economy. In a command economy, the government has control over the production and distribution of goods and services. The government's directive to Mr. Black to increase the variety of candy he sells indicates that they are exerting control and making decisions about what should be produced and sold in the economy.

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  • 15. 

    Carla hasn't seen her grandmother in 3 years. She decides to go to Florida to see her. Carla buys round trip airplane tickets. The airplane tickets are a:

    • Need

    • Want

    • Scarcity

    Correct Answer
    A. Want
    Explanation
    Carla buying round trip airplane tickets to go see her grandmother in Florida suggests that the tickets are a want rather than a need. This is because Carla could have chosen not to go see her grandmother or could have used alternative means of transportation. The fact that she made the decision to purchase the tickets indicates that it is something she desires or wants to do, rather than something she absolutely needs to do.

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  • 16. 

    Economics is:

    • The study of how we satisfy our wants and needs with the limited resources available

    • How we get our stuff

    • The study of maintaining life with the money given to us by the government

    Correct Answer
    A. The study of how we satisfy our wants and needs with the limited resources available
    Explanation
    Economics is the study of how individuals, businesses, and societies make choices to allocate resources to satisfy their wants and needs. It involves analyzing the production, distribution, and consumption of goods and services in a world of limited resources. By understanding economic principles, we can make informed decisions about how to best utilize our resources to maximize our well-being and achieve our goals.

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  • 17. 

    Ms. Henderson is thinking about opening up a bakery. She wants to only sell cupcakes. The ingredients she will always need to have in order to make cupcakes are flour, sugar, eggs, milk, and chocolate. The ingredients she will need to make cupcakes are:

    • Land resources

    • Labor resources

    • Capital resources

    Correct Answer
    A. Capital resources
    Explanation
    The correct answer is capital resources because in order to open a bakery and make cupcakes, Ms. Henderson will need to invest in equipment and machinery such as ovens, mixers, and baking pans. These capital resources are essential for the production process and without them, she would not be able to make cupcakes.

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  • 18. 

    Scarcity is:

    • When there isn't enough resources for everyone to have all that they want

    • When the government decides to stop selling wants

    • When people stop buying goods and services

    Correct Answer
    A. When there isn't enough resources for everyone to have all that they want
    Explanation
    Scarcity refers to a situation where the available resources are limited in comparison to the unlimited wants and needs of individuals. This means that there is not enough resources to fulfill everyone's desires and demands. It does not involve the government's decision to stop selling wants or people's decision to stop buying goods and services. Scarcity is inherent in any society and requires individuals and governments to make choices and prioritize their needs and wants.

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  • 19. 

    Jared wants to get an Xbox Kinect with his birthday money. He also wants to save his money to go to Six Flags this summer. Jared decides to use his money to buy a Kinect. The opportunity cost is:

    • Missing his six flags trip

    • The money used to buy the kinect

    • The kinect

    Correct Answer
    A. Missing his six flags trip
    Explanation
    The opportunity cost refers to the value of the next best alternative that is forgone when making a decision. In this case, Jared's opportunity cost is missing his Six Flags trip. This means that by choosing to buy the Xbox Kinect, Jared gives up the opportunity to use his money for the summer trip to Six Flags. Therefore, the opportunity cost is not the money used to buy the Kinect or the Kinect itself, but rather the experience of going to Six Flags.

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  • Current Version
  • May 25, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 17, 2011
    Quiz Created by
    Gxenakis
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