Economics may be defined as the science that explains _____________.

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

Scarcity is a situation in which ______________________.

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

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

what, how, who, where, and would you please
why, what, how, when, and where
what, how, when, where, and why
what, how, when, where, and who

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

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

Making a decision at the margin means ____________________.

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

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

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

When you buy a can of coke ___________________.

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

An example of market failure is when ________________________.

the price of coffee rises
a single producer controls a market and cuts output to raise price
the wages of fast food workers fall
credit card interest rates rise

When productivity increases _____________________.

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

Macroeconomics is the study of ________________________.

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

The task of economic science is to _________________________.

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

Economists make progress by ________________________.

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

Ceteris paribus means ____________________________.

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

Which statement is an example of the fallacy of composition?

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

Economists generally agree that ____________________________.

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

Please enter your name and press the SEND button