Chapter 1

• Which of the following statement best describes the study of economics? Economics studies how we make choices in the face of scarcity
• The satisfaction of pleasure one gets from consuming a good or service is called: utility
• Henry wants to buy a book. The economic perspective suggest that Henry will buy the book if: The marginal benefit of the book is greater than its marginal cost
• A basic assumption used in most economic theories is that: All other things remain the same
• If a consumer has an income of $200, the price of X is $5, and the price of Y is $10, the maximum quantity of X the consumer is able to purchase is: 40
• Opportunity cost is the best defined as: The value of the best forgone alternative
• To economists, scarcity means that: unlimited wants cannot be satisfied by the limited resources
• Huey has eaten two hamburgers and is considering the third. The marginal benefit in his decision is the pleasure from consuming: Just the third hamburger
• Which of the following is not considered one of the factors of production?

  technology
• Capital is a factor of production. An example of capital as a factor of production is: Machinery
• The assertion that “there is no free lunch” means that: All production involves the use of scarce resources and thus the sacrifice of alternative goods.
• The four factors of production are: Land, labor, capital, entreprenurship
• Macroeconomics approaches the study of economics from the viewpoint of: the whole economy
• A normative statement is one that: is based on value judgments.
• An increase in money income: shifts the consumer's budget line to the right.
• Which of the following is a microeconomic statement? The price of smartphones declined 2.8 percent last year.
• The Latin term "ceteris paribus" means: Other things equal
• Camille is at the candy store with Grandma Mary, who offers to buy her $6 worth of candy. If lollipops are $1 each and candy bars are $2 each, what combination of candy can Camille's Grandma Mary buy her? two lollipops and two candy bars
• Refer to the diagram, this economy will experience unemployment if it produces at point: D

  
• Which one of the following expressions best states the idea of opportunity cost? "There is no such thing as a free lunch." 
• Which of the following is associated with macroeconomics? an empirical investigation of the general price level and unemployment rates since 1990
• Which of the following is a land resource? Natural gas
• From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the: marginal cost of waiting is greater than the marginal benefit of eating in that restaurant.
• Matt observes that "there is a high correlation between educational attainment and the level of income." Jean concurs and adds that "high school graduates should all proceed to college.":Matt's statement is positive, while Jean's statement is normative.
• Which of the floowing is NOT considered one of the resources of production? Money