Economics may be defined as the science that explains __________________.

the decisions made by politicians
the decisions made by households
all human behaviour
the choices that we make as we cope with scarcity

Scarcity is a situation in which _______________________.

people are poor
there is a shortage of something
something is being wasted
wants exceed the resources available to satisfy them

Economic choices can be summarized in five big questions. They are ___________________.

why, what, how, when, and where
what, how, when, where, and who
what, why, who, where, and who
what, how, when, where, and why

By remaining in school, you are paying an opportunity cost that includes ___________________.

the money you spend on CDs
the money you spend on clothes
the money you spend on food and drink
the wages you could earn if you took a job

Making a decision at the margin means ___________________.

making an all-or-nothing choice
letting someone else choose for you
deciding to do a little bit more or a little bit less of an activity
waiting until the last minute to make a choice

If the cost of textbooks rises by a large amount, you have an incentive to __________________.

buy the same number of books
take a longer vacation
buy more books because they are now more valuable
buy fewer books and share with your friends

When you buy a can of coke, _________________________.

the seller gains but you lose because you have to pay for the coke
you gain and the seller gains
you gain, but the seller loses if you buy the coke after midnight
the seller gains but you gain only if it is a hot day

When markets are efficient, ___________________.

resources are used where they are valued most highly
wages are high
there is equity
producers make big profits

When production per person increases, ________________.

living standards improve
prices rise
living standards deteriorate
there are fewer good jobs

Macroeconomics is the study of _________________.

the decisions of individual businesses and people
multinational businesses
the national economy and the global economy as a whole
all aspects of scarcity

The task of economic science is to _____________________.

tell us what is good for us
help us to understand how the economic world works
make moral choices about things like drugs
save the earth from the overuse of natural resources

Economists make progress by _______________.

asking people whether they are better off or worse off
building and testing economic models
lobbying politicians for more money
asking people how they feel about things

Ceteris paribus means _____________.

other things being equal
holding everything constant
equal access to public transportation
all things considered

Which statement is an example of the fallacy of composition?

There should be equal access to public transportation.
Hold everything constant except the price of juice.
Christmas shopping causes Christmas.
If one fishing boat limits its catch, more fish will survive.

Economists generally agree that _____________________.

rent ceilings cut the availability of housing
taxes are too low
taxes have no significant effects
taxes are too high

Please enter your name and press the SEND button