Microeconomics Quiz

Monroe College

Student’s name: Microeconomics Quiz 1

Class & Section: EC-203-31

1. The general concern of economics is with the study of the (b)

a. degree of competition in stock and bond markets in the economy.

b. efficient use of limited productive resources to satisfy economic wants.

c. issue of equality in the distribution of income and wealth among households.

d. budget deficits in the domestic economy and trade deficits in the international economy.

2. The term scarcity in economics refers to the fact that (c)

a. economic wants are limited and resources are abused.

b. even in the richest country some people go hungry.

c. no country can produce enough products to satisfy everybody's economic wants.

d. it is impossible to produce too much of any particular good or service in a market economy.

3. Are the goods that businesses offer for "free" to consumers also free to society? (c)

a. Yes, because the individual consumer does not have to pay for them.

b. Yes, because the marginal benefit is greater than the marginal cost.

c. No, because scarce resources were used to produce the free goods.

d. No, because society does not assign a value to free goods.

4. Which is considered to be an economic resource by economists? (c)

a. Rent

b. Money

c. Labor

d. Wages

5. Along a production possibilities curve, an increase in the production of one type of good can be accomplished only by (a)

a. decreasing the production of the other type of good.

b. increasing the production of the other type of good.

c. holding constant the production of the other type of good.

d. decreasing the price of the other type of good.

6. Which statement best describes a command economy? (d)

a. The production of goods and services is determined primarily by markets, but the allocation of goods and services is...