Ecomonic
ch1 class student ID name
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 1. Which of the following is correct?
a.|The word economy comes from the Greek word for “rational thinker.”|
b.|Economists study the management of scarce resources.|
c.|Because economists believe that people pursue their best interests, they are not interested in how people interact.|
d.|All of the above are correct.|
____ 2. Which of the following is correct concerning Trade-offs?
a.|Recognizing that trade-offs exist is the only thing people need to know to determine what decisions to make.|
b.|Government policies generally do not involve a trade-off between equity and efficiency.|
c.|Laws that require firms to reduce pollution involve trade-offs.|
d.|None of the above are correct.|
____ 3. When computing the opportunity cost of attending a football game you should include
a.|the price you pay for the ticket and the value of your time.|
b.|the price you pay for the ticket, but not the value of your time.|
c.|the value of your time, but not the price you pay for the ticket.|
d.|neither the price of the ticket nor the value of your time.|
____ 4. You are considering staying in college another semester so that you can complete a major in economics. In deciding whether or not to stay you should
a.|compare the total cost of your education to the total benefits of your education.|
b.|compare the total cost of your education to the benefits of staying one more semester.|
c.|compare the cost of staying one more semester to the benefits of staying one more semester.|
d.|compare the total benefits of your education to the cost of staying one more semester.|
____ 5. Senator Smith argues that replacing the income tax with a national sales tax would increase the level of output. Senator Wells objects that this policy would benefit the rich at the expense of the poor.
a.|Both
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 1. Which of the following is correct?
a.|The word economy comes from the Greek word for “rational thinker.”|
b.|Economists study the management of scarce resources.|
c.|Because economists believe that people pursue their best interests, they are not interested in how people interact.|
d.|All of the above are correct.|
____ 2. Which of the following is correct concerning Trade-offs?
a.|Recognizing that trade-offs exist is the only thing people need to know to determine what decisions to make.|
b.|Government policies generally do not involve a trade-off between equity and efficiency.|
c.|Laws that require firms to reduce pollution involve trade-offs.|
d.|None of the above are correct.|
____ 3. When computing the opportunity cost of attending a football game you should include
a.|the price you pay for the ticket and the value of your time.|
b.|the price you pay for the ticket, but not the value of your time.|
c.|the value of your time, but not the price you pay for the ticket.|
d.|neither the price of the ticket nor the value of your time.|
____ 4. You are considering staying in college another semester so that you can complete a major in economics. In deciding whether or not to stay you should
a.|compare the total cost of your education to the total benefits of your education.|
b.|compare the total cost of your education to the benefits of staying one more semester.|
c.|compare the cost of staying one more semester to the benefits of staying one more semester.|
d.|compare the total benefits of your education to the cost of staying one more semester.|
____ 5. Senator Smith argues that replacing the income tax with a national sales tax would increase the level of output. Senator Wells objects that this policy would benefit the rich at the expense of the poor.
a.|Both