Question

11. A map of the United States is an example of:

Multiple Choice

1. a model that simplifies the complexities of the country.
2. a theory that simplifies the complexities of the country.
3. an exact representation of the complex details of the country.
4. a version of the circular flow diagram.

12. In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made.

Multiple Choice

A. government

B. market

C. firm

D. business sector

13. Because people live in a world of scarcity:

Multiple Choice

1. they cannot have all of the time, money, and experiences that they want.
2. they are able to have all of the time, money, and experiences they want.

3. they do not face shortages.
4. there are no opportunity costs.

14. Suppose Iris’s budget constraint for burgers and bus tickets shows burgers on the y-axis and bus tickets on the x-axis. What is true if Iris spends all of her money on bus tickets?

Multiple Choice

1. She will be at a point on the y-axis.
2. She will be at a point on the x-axis.
3. She will be at a point inside the budget constraint.
4. She will be at a point outside the budget constraint.

15. A budget constraint shows:

Multiple Choice

1. the amount of goods and services a firm can produce.
2. how much more money a consumer needs to consume at the next income level.
3. the boundary of the opportunity set.
4. consumer preference for one good relative to another.

16.The opportunity cost of attending university is likely to include all except which of the following?

Multiple Choice

1. The cost of haircuts received during the school term
2. The income you forgo in order to attend classes
3. Tuition and fees
4. The cost of required textbooks

17. "If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." The opportunity cost of attending class this evening is:

Multiple Choice

1. $0.
2. $4.
3. $40.
4. $44.

18. Most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little less of a good.

Multiple Choice

1. utility
2. marginal analysis
3. the budget constraint
4. consumption

19. The law of diminishing marginal utility tells us that:

Multiple Choice

1. the more we consume, the more satisfaction we get from each additional unit.
2. in order to maximize our utility, we must consume large portions of one item.
3. consuming less is a better way to live our lives.
4. the more we consume, the less satisfaction we get from each additional unit.

20. uppose a production possibilities frontier (PPF) for healthcare and education lists healthcare on the y-axis and education on the x-axis. What is the opportunity cost of moving from a point on the PPF near the y-axis to a point on the PPF near the x-axis?

Multiple Choice

1. The amount of education you forgo to gain more healthcare.
2. The amount of education and healthcare you gain.
3. The amount of education and healthcare you lose.
4. The amount of healthcare you forgo to gain more education.

Answer 1

11. ​Option A. ​​​​​​a model that simplifies the complexities of the country.

Explanation: A map works as a model that works as a simple representation of a country.

12. Option A. government

Explanation: The government has a heavy intervention in a command and control economy.

13. Option A. they cannot have all of the time, money, and experiences that they want.

Explanation: There are limited resources and unlimited wants of people.

14. Option B

Explanation: Here, consumption will be on the point at which the budget line intersects the X-axis.