1) Which of the following is an example of a tradeoff?

Question content area bottom

Part 1

A.

Aschoolboardspends less on teachers and less on computers.

B.

Aschoolboardspends more on teachers and more on computers.

C. Aschoolboardspends the same amount on teachers and computers.

D. Aschoolboardspends more on teachers and less on computers.

What is Economics?

Question content area bottom

2)Economics is _______.

A.

a subject that teaches us how to eliminate scarcity

B.

a subject that tells governments what they must do

C.

a subject that tells countries what goods they must trade

D.

a subject that is divided into microeconomics and macroeconomics

3)

Choose the correct statement.

Question content area bottom

A.

Governments can make better decisions by using the tools of economics, but businesses require the tools of business administration, not economics.

B.

Economics can help with the normative part of a policy goal.

C.

Policy questions involve a blend of positive and normative questions.

D.

For a given goal, economics compares the total benefit from achieving the goal with its total cost to find the best use of the available resources.

4)

What does it mean to say that a person is making a rational choice?

A rational choice _______.

A.

has the lowest opportunity cost

B.

is always the best choice for society

C.

achieves the greatest benefit over cost for the person making the choice

D.

will turn out to have been the best choice after the event

5)

What does it mean do say that you make a choice in your self-interest?

Question content area bottom

Part 1

When you make a choice in your self-interest, _______.

A.

that choice is theoneyouthinkisbest foreveryone includingyourself

B.

that choice is theoneyouthinkisbest forothersbutnotforyou

C.that choice may also be the best choice for society

D.

that choice is a selfishchoiceifit requiresproduction by someone else

6)

_______ is an example of a good. _______ is an example of a service.

A) Ski coaching; A haircut

B) A gold ball; A haircut

C) Drycleaning; A hockey puck

D) Teaching; A cookie