Quiz 2 This quiz will count for 1'5 % point

1
Quiz 2This quiz will count for 1.5 point

• 10 questions
• Each question is worth 1 quiz point
• Total 10 quiz points

2
Question 1

• Both households and societies face many decisions
  because
• a. resources are scarce.
• b. populations may increase or decrease over
  time.
• c. wages for households and therefore society
  fluctuate with business cycles.
• d. people, by nature, tend to disagree.

3
Question 2

• Henry decides to spend two hours playing golf
  rather than working at his job which pays 8 per
  hour. Henrys tradeoff is
• a. the 16 he could have earned working for
  two hours.
• b. nothing, because he enjoys playing golf
  more than working.
• c. the increase in skill he obtains from
  playing golf for those two hours.
• d. nothing, because he spent 16 for green
  fees to play golf.

4
Question 3

• Which of the following best defines efficiency?
• a. absolute fairness
• b. equal distribution
• c. minimum waste
• d. consumer sovereignty

5
Question 4

• The opportunity cost of an item is
• a. the number of hours needed to earn money to
  buy it.
• b. what you give up to get that item.
• c. usually less than the dollar value of the
  item.
• d. the dollar value of the item.

6
Question 5

• People make decisions at the margin by
• a. following tradition.
• b. experience.
• c. calculating dollar costs.
• d. comparing costs and benefits.

7
Question 6

• The art of scientific thinking includes
• a. knowing how the major organs of the human
  body work.
• b. understanding every scientific
  field physics, biology and economics.
• c. deciding which assumptions to make.
• d. being able to mathematically express
  natural forces.

8
Question 7

• Factors of production are
• a. the mathematical calculations firms make to
  determine production.
• b. weather and social and political
  conditions that affect production.
• c. the physical relationships between economic
  inputs and outputs.
• d. inputs into the production process.

9
Question 8

• If an economy is producing efficiently
• a. there is no way to produce more of one good
  without producing less of the other.
• b. it is possible to produce more of both
  goods.
• c. it is possible to produce more of one good
  without producing less of the other.
• d. it is not possible to produce more of one
  good at any cost.

10
Question 9

• With trade a
• a. country is worse off because it becomes
  dependent on other countries.
• b. country will produce a greater variety of
  goods and services to trade.
• c. countrys consumption possibilities
  frontier can be outside its production
  possibilities frontier.
• d. country will experience a lower
  unemployment rate.

11
Question 10

• Which of the following is NOT correct?
• a. Trade allows for specialization.
• b. Trade is good for nations.
• c. Trade is based on absolute advantage.
• d. Trade allows individuals to consume
  outside of their individual production
  possibilities curve.

12
Answers

• 1. A
• 2. A
• 3. C
• 4. B
• 5. D
• 6. C

13
Answers

• 7. D
• 8. A
• 9. C
• 10. C