ECON mcqs

Refer to the above table. What is the opportunity cost of the third unit of capital goods:

A) 3 units of consumer goods. B) 4 units of consumer goods. C) 6 units of consumer goods. D) 5 units of consumer goods.

 Review

A society producing the right goods and right amounts is achieving:

A) "least-cost" efficiency. B) productive efficiency. C) fuel efficiency. D) "most-wanted" efficiency.

 Review

The term "ceteris paribus" means:

A) that if event A precedes event B, A has caused B. B) prosperity inevitably follows recession. C) that economics deals with facts, not values. D) other things equal.

 Review

The French term "laissez-faire" means:

A) "there is no free lunch." B) "let it be." C) "public ownership." D) "circular flow."

 Review

Suppose output is growing in a specific competitive industry. Which of the following most likely represents the market conditions in this industry?

A) Economic profits are negative. B) There has been decreased demand for product or service. C) The industry is in equilibrium (settled). D) Economic profits are positive.

 Review

Macroeconomics can best be described as the:

A) analysis of how firms attempt to maximize their profits. B) study of the large aggregates of the economy or the economy as a whole. C) study of how supply and demand determine prices in individual markets. D) analysis of how a consumer tries to spend income.

 Review

"Too less spending" may reduce employment because:

A) of irrational behavior. B) marginal benefit is greater than marginal cost. C) producers respond with a lower output. D) of lower interest rates.

 Review

Marginal means:

A) usefulness. B) satisfaction. C) efficient. D) additional.

 Review

Economics is a social science that studies how individuals, institutions, and society may:

A) Attain a minimum level of unemployment B) Expand the amount of productive resources available to them C) Reduce the prices of goods and services to consumers D) Best use scarce resources to achieve the maximum satisfaction of economic wants

 Review

Opportunity cost is best defined as:

A) The time spent on an economic activity B) Marginal cost minus marginal benefit C) The value of the best forgone alternative D) The money cost of an economic decision