Question 1 (1 point)

The economic way of thinking

Question 1 options:

a)	recognizes that there are both costs and benefits to both capitalism, or free markets, and command, or centrally planned, economies.

b)	is a structured way of approaching decision-making and problem-solving.

c)	All of these are accurate.

d)	assumes all decision-making is rational.

Question 2 (1 point)

People must make choices because

Question 2 options:

a)	they enjoy shopping.

b)	of scarcity.

c)	there are many goods available.

d)	they are selfish.

Question 3 (1 point)

Which is NOT a resource?

Question 3 options:

a)	water used to cool a nuclear power plant

b)	the effort of farmers

c)	wages paid to workers

d)	the management skill of a businessman

Question 4 (1 point)

Choose the correct statement.

Question 4 options:

a)	Entrepreneurship is not a resource.

b)	Entrepreneurs come up with new ideas about what and how to produce.

c)	Entrepreneurship refers to people who manage a business.

d)	Entrepreneurship includes the tools and instruments we work with.

Question 5 (1 point)

Which is correct?

Question 5 options:

a)	A waitress is capital.

b)	A fishing pole is labor.

c)	A wind turbine is land.

d)	A person running their own business is an entrepreneur.

Question 6 (1 point)

______ earns ______.

Question 6 options:

a)	An economist; interest

b)	Crude oil; wages

c)	Jeff Bezos, founder of Amazon.com; profit

d)	A knitting machine is a sweater factory; rent

Question 7 (1 point)

______ earns ______.

Question 7 options:

a)	A nurse; rent

b)	Sam Walton, founder of Walmart; wages

c)	A tractor; interest

d)	Forests; profit

Question 8 (1 point)

Which economic system uses prices as the primary means of rationing?

Question 8 options:

a)	free markets

b)	command economy

c)	capitalism

d)	central planning

e)	both a & c

f)	both b & d

Question 9 (1 point)

You can go on vacation to Thailand, stay at work, or paint your house. If you go to Thailand, the opportunity cost of the trip is

Question 9 options:

a)	working, because you would be giving up money.

b)	working or painting, depending on which you would have done otherwise.

c)	working and painting.

d)	nothing because you will enjoy the trip to Thailand.

Question 10 (1 point)

The night before an exam, you watch a movie instead of studying. You score 60% on your exam. If you had studied instead, you'd have scored 70%. The opportunity cost of watching a movie was

Question 10 options:

a)

70%.

b)

zero.

c)

60%.

d)	10% less on the exam.

Question 11 (1 point)

You plan on buying a new bed and dresser, but notice there is a package which includes the bed and dresser you want plus a bedside table. What is the marginal benefit of buying the new bedside table?

Question 11 options:

a)	the difference in price between the bed and dresser alone versus the package

b)	the increase in satisfaction you'd get from having a new bedside table

c)	the increase in satisfaction you'd get from having a new bedroom set

d)	the price of the bedside table alone

Question 12 (1 point)

Fatima was going to buy two tacos for $3 each and a medium drink for $2, but she sees there is a meal with three tacos and a medium drink for $9. The marginal cost of the third taco would be

Question 12 options:

a)

$1.

b)

$2.

c)

$9.

d)

$3.

Question 13 (1 point)

Choose the correct statement.

Question 13 options:

a)	To spend the weekend in Kyoto is a rational choice if the benefit of going to Kyoto is less than the cost of going to Kyoto.

b)	All of these statements are true.

c)	To live off base is a rational choice if the net cost of living off base is greater than the net cost of living on base.

d)	To quit college and train to become a plumber is a rational choice if the net benefit of being a plumber is greater than the net benefit of completing college.

Question 14 (1 point)

Shawn sells his last two loaves of bread to Malia for $1. The trade

Question 14 options:

a)	benefits Shawn but imposes a cost on Malia.

b)	benefits neither Shawn nor Malia.

c)	benefits Malia but not Shawn since these are Shawn's last two loaves of bread.

d)	benefits both Shawn and Malia.

Question 15 (1 point)

Which is a normative statement?

Question 15 options:

a)	When the national unemployment rate is 9%, the unemployment rate for teenagers is usually about 40%.

b)	The national unemployment rate is currently about 9%.

c)	An inflation rate of 3% is acceptable.

d)	The majority of people agree that unemployment is a more important problem than inflation.

Question 16 (1 point)

Which is a normative statement?

Question 16 options:

a)	A 10% increase in income causes people to eat 4% more beef.

b)	The government should eliminate labor unions.

c)	The majority of students agree that economics should last for two terms.

d)	Lower taxes would increase economic activity.

Question 17 (1 point)

Which is a positive statement?

Question 17 options:

a)	When the national unemployment rate is 9%, the unemployment rate for teenagers is usually about 40%.

b)	An unemployment rate of 9% is a national disgrace.

c)	An inflation rate of 3% is acceptable.

d)	Unemployment is a more important problem than inflation.

Question 18 (1 point)

Which is a normative statement?

Question 18 options:

a)	40% of the public believes that the unemployment rate is too high.

b)	An increase in the unemployment rate will increase the poverty rate.

c)	The unemployment rate is too high.

d)	The unemployment rate rose last month.