Question

Which of the following would not be a central issue in economics?

Question 1 options:

	How is production carried out?
	Who consumes what?
	What goods are produced?
	When are goods consumed and produced?
	None of the above

Question 2 (1 point)

Which of the following would be of particular interest to a micro-economist?

Question 2 options:

	amount of fruit the typical household consumes
	nation’s inflation rate
	nation’s rate of unemployment
	budget of the national government

Question 3 (1 point)

People are forced to make choices because of

Question 3 options:

	unlimited wants and unlimited resources
	limited wants and unlimited resources
	unlimited wants and limited resources
	limited wants and limited resources

Question 4 (1 point)

The basic difference between macroeconomics and microeconomics is:

Question 4 options:

	microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.
	microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms.
	microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
	microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

Question 5 (1 point)

Which of the following is the best example of a macroeconomic topic?

Question 5 options:

	The impact that the money supply has on inflation.
	The reasons for increases in the price of soft drinks.
	The effect of Ford Motor Company’s decision on your paycheck.
	The tradeoff between going to school and going to the movies.
	I have no clue.

Question 6 (1 point)

The retirement age should be raised to 70 to combat the effects of our ageing population is an example of

Question 6 options:

	positive economics
	normative economics
	macroeconomics
	microeconomics
	democracy

Question 7 (1 point)

The market demand curve shows

Question 7 options:

	the effect on market supply of a change in the demand for a good or service.
	the quantity of a good that consumers would like to purchase at different prices.
	the marginal cost of producing and selling different quantities of a good.
	the effect of advertising expenditures on the market price of a good.

Question 8 (1 point)

During a recession, economies experience increased unemployment and a reduced level of activity. How would a recession be likely to affect the market demand for new cars?

Question 8 options:

	Demand will shift to the right.
	Demand will shift to the left.
	Demand will not shift, but the quantity of cars sold per month will decrease.
	Demand will not shift, but the quantity of cars sold per month will increase.

Question 9 (1 point)

If the price of a good increases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been

Question 9 options:

	an increase in demand
	a decrease in demand
	an increase in supply
	a decrease in supply

Question 10 (1 point)

If the price of a good increases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has been

Question 10 options:

	an increase in demand
	an increase in supply
	a decrease in supply
	a decrease demand

Answer 1