1. If Sherry decided to study for her economics exam than going out with her friends to watch a movie, what is her opportunity cost?

a. she can spend for popcorn b. her having greater chance of getting good score c. her time studying d. the enjoyment of watching the movie

2. The government is predicting the future levels of inflation and employment rate is under what scope of economics?

a. positive economics b. microeconomics c. negative economics d. macroeconomics

3. Upon graduating in high school, Lara decided to go to college. The time she spent in college is an opportunity cost.

a. never b. true c. false d. maybe

4. Which of the following is a factor of production?

a. the skills of an electrical engineer to make electrical wirings. b. the profit of a company c. the taxes paid by workers to the government d. the interest paid on bank loan

5. To which category of resources does an hour of surgical operation belong to?

a. labor b. entrepreneurship c. land d. capital

6. The following are considered consumer goods; EXCEPT:

a. food b. clothing c. Hermes bag d. water

7. When there is a high demand for ice cream during summer, what happens to its price?

a. none of these are correct b. increases c. decreases d. remains the same

8. It is harvest season and farms are producing more vegetables than households demand. There is a _________.

a. surplus b. equilibrium c. shortage d. price volatility

9. Emily listed the sale of her bananas in a chart. It is recorded in a way that at each price there is an equivalent amount of quantity demanded. What does this scenario pertains?

a. supply curve b. demand curve c. supply schedule d. demand schedule

10. Corn crops are very plentiful over the course of the year and there is more corn than people would normally buy. To get rid of the excess supply, what should farmers do?

a. do not sell some corn b. increase the price of the corn c. none of these are correct d. lower the price of the corn