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Basic Economic Concepts Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. ____ statements usually use ____ evidence as support, but are heavily focused on the individual's own opinions and ____ systems.

Question 2 2. Positive economics is _________.

Question 3 3. The additional satisfaction of consuming an additional good or service is referred to as _____.

Question 4 4. The maximum amount a consumer is willing to pay for an additional good or service is referred to as _____.

Question 5 5. Mark has $15 that he wants to spend on something that entertains him. He was planning to buy a book with this money, but then he decided to watch a new movie with this money. The fact that Mark cannot read the book because he opted for the film is an example of _____.

Page 2

Question 6 6. Which of these is the BEST definition of microeconomics?

Question 7 7. Countries should specialize in which products and services?

Question 8 8. Gains from trade expressed in economic terms are:

Question 9 9.

Considering the following information, what would be the best decision using marginal analysis?

Producing an additional unit of smartphones has a marginal cost of $1,000 and a marginal benefit of $1,500? The change in net benefits is $500.

Question 10 10. What is marginal analysis?

Page 3

Question 11 11. What is economics?

Question 12 12. Which of the following is NOT a subject in the study in macroeconomics?

Question 13 13. Normative economics often involves which of the following?

Question 14 14. 'Everyone should get to play the stock market' is an example of a statement embodying what kind of economics?

Question 15 15. Which of the following is part of the scientific thought process of an economist?

Page 4

Question 16 16. As an economist, you are working with a local member of congress. You have data indicating a drop in demand for consumer goods as a result of taxation. You advise her to push for lower taxes. What type of statement(s) are you presenting?

Question 17 17.

Country A can either produce 10 cars or 10 computers, while country B can produce either 4 cars or 8 computers.

Based on this information, which of the following statements is TRUE?

Question 18 18. Which of the following are problems that all economies face?

Question 19 19. How does the precision of inputs affect a model?

Question 20 20. Which one of the following pursuits will the Economic Man always pursue as a consumer?

Page 5

Question 21 21. One of the primary effects of economic interdependence is _____.

Question 22 22. Economic interdependence is primarily a phenomenon affecting what type of nations?

Question 23 23. People who commonly face trade-offs in economics are called:

Question 24 24. Economic trade-off is often referred to as?

Question 25 25. Which of the following is NOT one of the steps involved in proving statements true in positive economics?

Page 6

Question 26 26. With marginal benefit, a consumer can get satisfaction from _____.

Question 27 27. Which of these BEST defined an oligopoly?

Question 28 28. If a country were to produce only good X, it can produce 20 units. If it were to only produce good Y, it can produce 100 units. what is the opportunity cost of producing good X?

Question 29 29. Consider the following information: Producing an additional unit of a smartphone will lead to a marginal cost of $1,000 and a marginal benefit of $1,500? What is the net benefit?

Question 30 30. Which of the following BEST explains sustainable economic growth?

Basic Economic Concepts Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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