Quiz: Introduction To Economics Questions!

8 Questions | By Melkinsey2000 | Last updated: Mar 21, 2022 | Total Attempts: 515

Questions

Settings

Create your own Quiz

Quiz: Introduction To Economics Questions! - Quiz

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