1. Which perspectives are useful to divide economic thinking?

Public versus private

Selfish versus charitable

Noble versus common

2. What outcome was emphasized in the distribution of bagged lunches on the bus?

Random distribution was fairest.

Trading created tension.

The driver had to monitor swapping.

Swapping food was efficient.

3. In a year, two nations can produce: 1) Alpha: 2,400 cars or 800 trucks; 2) Beta: 1,200 cars or 600 trucks. According to comparative advantage, which nation should specialize in cars and which nation in trucks?

Alpha in trucks; Beta in cars

Alpha in trucks and cars

Alpha in cars; Beta in trucks

Beta in trucks and cars

4. Efficiency in production refers to a situation in which, given existing resources and knowledge, _____.

producing more of any good is impossible

producing more of one good means more of another good at the same time

producing more of one good means producing less of another

producing more of one good can be accomplished only if output of all other goods is unchanged

5. Which of these is NOT an opportunity cost of attending a semester of college classes?

Foregone income of time in college

Room and board

Tuition expenses

Books and supplies

6. Which of these is "empirical evidence" regarding a theory?

Statistical results from a hypothetical simulation of theory

Representing the theory with a story

Representing the theory with a graph

Statistical summaries of observations of actual choices people make

7. In explaining the unintended effects of banking regulations after the 1980s financial crisis, the policy _____.

was ineffective at improving bank balance sheets because the rules were too complex for banks to follow

hurt bank customers instead, while actually helping regulated banks to earn much higher profits

raised the cost of regulated bank lending, thereby encouraging an unregulated shadow banking system that was less stable

caused a worse lending crisis among regulated banks in the 1990s