1.If ceteris paribus, a firm's production costs decrease, what should happen to its quantity produced?

a. It will decrease along with total benefit.

b.It will decrease.

c.It will increase.

d.It will be unaffected.

e.Insufficient data to determine

2. Which of the following must be true for a good for which there is demand and a limited supply?

a.The good has no utility.

b.The good's producer enjoys a comparative advantage.

c.Most consumers will find the good their optimal choice.

d.The good is scarce.

e.The production of the good will have a constant opportunity cost.

3. Why might a food item such as bread not necessarily be a consumer good in all economic scenarios?

a. Food products are scarce.

b.It could be sold to a government employee.

c.It could be an ingredient in a consumer good that is sold by a business.

d. Acquiring one food item involves not acquiring another item that could have been purchased instead.

e.Since food is consumed it is always a consumer good.

4. On a production possibilities curve (PPC), an improvement in the state of technology affecting all goods would signify what type of shift?

a. A shift beyond the vertical axis

b.A shift beyond the horizontal axis

c.An inward shift

d.An outward shift

e.No shift at all

5.Deciding whether to purchase an additional unit of a good involves

a.non-rational decision-making

b.marginal cost-benefit analysis

c.total cost-benefit analysis

d.no opportunity costs

e.finding the least utility per dollar for consumers