Question

1. In the markets for goods and services , in the circular-flow diagram,

Question 1 options:

	households and firms are both buyers.
	households and firms are both sellers
	households are buyers and firms are sellers.
	households are sellers and firms are buyers.

Question 2 (2.5 points)

2. The law of demand states , other things equal:

Question 2 options:

	When the price of a good or service decreases, the quantity demanded decreases.
	When the price of a good or service decreases, the quantity demanded increases.
	When the price of a good or service decreases, the demand decreases.
	When the price of a good or service decreases, the demand increases.

Question 3 (2.5 points)

3. The primary emphasis in macroeconomics is on

Question 3 options:

	how firms set prices.
	the national economy.
	marginal analysis.
	bits and pieces of the economy.

Question 4 (2.5 points)

4. Which is NOT a resource?

Question 4 options:

	land.
	labor.
	capital
	money.

Question 5 (2.5 points)

5. If a resource is scarce, it means that they:

Question 5 options:

	are insufficient to provide enough goods and services to satisfy all human material wants and needs.
	have no opportunity costs.
	are probably not valued by consumers.
	have an unlimited supply.

Question 6 (2.5 points)

6. Although freshwater is very abundant in most places, it is scarce becuase;

Question 6 options:

	it has no alternative uses.
	there is not enough of it to meet all needs.
	it is a free good.
	scarce goods in general are not all that costly.

Question 7 (2.5 points)

7. A simplified representation that is used to study a real situation is called a (n):

Question 7 options:

	assumption.
	production possibilities frontier (PPF)
	model.
	trade -off.

Question 8 (2.5 points)

8. Which of the following can best be considered to be a resource used in the production of computers?

Question 8 options:

	money from investors.
	wages of computer engineers.
	computer engineers.
	taxes on the profits from the sale of the computers.

Question 9 (2.5 points)

9. A consumer's willingness to pay(WTP) reflects:

Question 9 options:

	the maximum price at which a buyer would buy the good or service.
	the minimum price at which a buyer would buy the good or service.
	the cost of producing the good.
	the equilibrium of the good or service.

Question 10 (2.5 points)

10. In a market for basketball, the willingness to pay WTP) for James is $150.00, for Cassy is $140.00, for Rudy is $120.00, for Michelle is $100.00 and for Hana is $80.00. If the price for basketball is $145.00, who will purchase the basketball?

Question 10 options:

	James.
	Cassy.
	Rudy
	Michelle
	Hana

Answer 1

Answer optionhouseholds and firms are both buyers.

In the markets for goods and services , in the circular-flow diagramo householdsnd firms are both buyers.

Answer optionWhen the price of a good or service decreases, the quantity demanded increases

The law of demand states , other things equal:When the price of a good or service decreases, the quantity demanded increase

Answer option)bits and pieces of the economy.

The primary emphasis in macroeconomics is onbits and pieces of the economy.

Answer option)money.

Money is not a resource.

Answer option)are insufficient to provide enough goods and services to satisfy all human material wants and needs.

If a resource is scarce, it means that they:are insufficient to provide enough goods and services to satisfy all human material wants and needs.