Quiz: Introduction To Economics Questions!

8 Questions | Total Attempts: 337

SettingsSettingsSettings
Please wait...
Economics Quizzes & Trivia

It doesn’t matter what topic you’re dealing with, whether it’s something you have a great interest in or something you find boring but thinks will come in handy, everybody starts in the same place when they take on a brand-new subject – chapter one! In the following quiz, we’ll be doing just that as we take a look at some chapter one questions with regards to the study of economics!


Questions and Answers
  • 1. 
    Scarcity implies that the allocation scheme chosen by society can:
    • A. 

      Not make more of any one good

    • B. 

      Always make more of any good

    • C. 

      Typically make more of a good but at the expense of making less of another

    • D. 

      Always make more of all goods simultaneously

  • 2. 
    A production possibilities frontier is a simple model of:
    • A. 

      Scarcity and allocation

    • B. 

      Prices and output

    • C. 

      Production and costs

    • D. 

      Inputs and outputs

  • 3. 
    The underlying reason that there are unattainable points on a production possibilities frontier diagram is that there:
    • A. 

      Is government

    • B. 

      Are always choices that have to be made

    • C. 

      Is a scarcity of resources within a fixed level of technology

    • D. 

      Is unemployment of resources

  • 4. 
    The underlying reason production possibilities frontiers are likely  to be bowed out (rather that linear) is:
    • A. 

      Choices have consequences

    • B. 

      There are always opportunity costs

    • C. 

      Some resources and people can be better used producing one good rather than another

    • D. 

      There is always some level of unemployment

  • 5. 
    The optimization assumption suggests that people make:
    • A. 

      Irrational decisions

    • B. 

      Unpredictable decisions

    • C. 

      Decisions to make themselves as well off as possible

    • D. 

      Decisions without thinking very hard

  • 6. 
    Imagine an economist ordering pizza by the slice. WHen deciding how many slices to oder she would pick that number where the enjoyable of the ___equals the enjoyment she could get from using the money on another good.
    • A. 

      First slice

    • B. 

      Last slice

    • C. 

      Average slice

    • D. 

      Total number of slices

  • 7. 
    Of course, all individual students are better off if they get better grades. If you were to conclude that all students would be better off if everyone received a "A" you would:
    • A. 

      Have fallen victim to the fallacy of scarcity

    • B. 

      Be right

    • C. 

      Have fallen victim to the fallacy of composition

    • D. 

      Be mistaking correlation with causation

  • 8. 
    If you were to conclude, after carefully examining data and using proper evaluation techniques, that a tax credit for attending college benefits the poor more than a tax deduction (of equal total cost to the government) would, you would have engaged in ___ analysis to reach that conclusion. 
    • A. 

      Negative

    • B. 

      Positive

    • C. 

      Normative

    • D. 

      Creative