Uestion 1 (1 point) question 1 unsaved
economics is a social science devoted to the study of

question 1 options:

a)

politics and money

b)

events of the past

c)

the interactions of people and societies

d)

how people allocate scarce resources within an economic system

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question 2 (1 point) question 2 unsaved
scarcity is the condition that exists when unlimited wants exceed

question 2 options:

a)

limited resources

b)

unlimited resources

c)

limited factory workers

d)

the factories needed to produce goods

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question 3 (1 point) question 3 unsaved
ben decides to open a pet grooming business. he hires joe as a groomer, stacy as a receptionist, buys grooming equipment, and rents land to run his business from.

in the same order, ben, joe and stacy, grooming equipment, and the property represent

question 3 options:

a)

capital, labor, entrepreneurship, land

b)

entrepreneurship, capital, labor, land

c)

entrepreneurship, labor, capital, land

d)

land, capital, labor, entrepreneurship

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question 4 (1 point) question 4 unsaved
opportunity cost is best described as

question 4 options:

a)

sum of all production costs

b)

value of the next best alternative given up when a choice is made

c)

the most expensive resource used in production

d)

monetary value of all alternatives foregone when decisions occur

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question 5 (1 point) question 5 unsaved
the subjective satisfaction gained from a good or service is known as

question 5 options:

a)

utility

b)

productivity

c)

marginal analysis

d)

happiness measure

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question 6 (1 point) question 6 unsaved
carlos realizes that if he studies an extra hour for his test, he will score five points higher. for each extra hour spent studying, he is getting one hour less of sleep.

when deciding whether to spend an additional hour studying or sleeping, carlos is engaged in what economic activity?

question 6 options:

a)

trade negotiations

b)

bartering

c)

marginal analysis

d)

market transactions

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question 7 (1 point) question 7 unsaved
when people use their resources so that the marginal benefits are equal to or exceed the marginal costs, they have made

question 7 options:

a)

decisions that eliminate scarcity

b)

rational economic decisions

c)

decisions that fail to use resources efficiently

d)

irrational economic decisions

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question 8 (1 point) question 8 unsaved
janice decides to spend $20 on a ticket to a concert instead of buying a new blouse. what is the opportunity cost of her decision?

question 8 options:

a)

the benefit of having a new blouse

b)

the opportunity to go out with friends

c)

$20

d)

the enjoyment of the concert

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question 9 (1 point) question 9 unsaved
during the great depression, the government rationed milk and eggs. this statement is an example of the government

question 9 options:

making profits for businesses

redistributing income

providing welfare

allocating scarce resources

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question 10 (1 point) question 10 unsaved
the owner of a car wash calculates that by hiring one additional worker, the car wash can wash 50 more cars per week at an average of $5 per wash. the owner will pay the worker $9 per hour for 30 hours per week.
what do you think the owner’s decision will be when considering marginal costs and benefits?

question 10 options:

the owner will hire the worker because the marginal costs of $250 per week are less than the marginal benefits of $270 per week.

the owner will not hire the worker because the marginal costs of $250 per week are less than the marginal benefits of $270 per week.

the owner will hire the worker because the marginal costs of $270 per week will be offset by the benefit of doing more car washes each week.

the owner will not hire the worker because the marginal costs of $270 per week are greater than the marginal benefits of $250 per week.
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