1.A zombie epidemic has occurred due to a viral outbreak. Vaccinations and anti-viral medication are needed to combat this situation. There is an underproduction of medicine.

Determine the type of market failure and which type of action the government should take to correct the market (per our lecture and book discussions).

A.Demand side market failure; the government should tax the firms to create more medicine

B.Demand side market failure; the government should take over with government provisions and produce the vaccinations to distribute for free

C.Supply side market failure; the government should create new regulations

D.Supply side market failure; the government should provide subsidies

2.What is the rationale/reason that the government imposes price floors?

A.To protect the government

B.To protect the consumers

C.To protect the producers

D.To protect freedom of the market

3.The individual's economizing problem is where we want to consume everything but we are limited by our income and time. Our wants exceeds our means. What is society's economizing problem?

A.Wanting to produce all goods and services but are limited by resources.

B.Being in massive debt.

C.Wanting to spend as much money as possible.

D.Not allocating resources efficiently

4.*BONUS* We would use "aggregate" units in microeconomics.

Question 5 options:

True

False

5.You have $500. You want to spend your money on fake eyelashes and swords because you are a quirky person that has eclectic utility. A set of fake eyelashes is $2.50 and a sword is around $100.Which one of the following is NOT an optimal combination?

A.1 sword, 160 eyelashes

B.3 swords, 80 eyelashes

C.4 swords, 40 eyelashes

D.2 swords, 125 eyelashes

6.You have $500. You want to spend your money on fake eyelashes and swords because you are a quirky person that has eclectic utility. A set of fake eyelashes is $2.50 and a sword is around $100.

If you buy ONE sword, what is the opportunity cost in terms of eyelashes?

A.40 eyelashes

B.80 eyelashes

C.20 eyelashes

D.60 eyelashes

7."The current inflation rate of the United States is at 1.9% as of May 2017." This is a positive economic statement.

A.True

B.False