Test Bank For Economics A Global Introduction 1E By Ananish Chaudhuri Chapter 1-15 Chapter 1
Questions and Answers
Multiple Choice Questions Economics is the study of: (A) (B) (C) (D)
How to fully satisfy our unlimited wants. How individuals and society manage their scarce resources. How individuals and society avoid having to make trade-offs. How individuals and society manage their unlimited resources.
Economics is best defined as the study of: (A) (B) (C) (D)
various market structures and the dynamics of prices and quantities in those markets. the impact and implications of inflation and interest rates. how people make choices under the conditions of scarcity and the results of those choices. the distribution and fluctuation of wages and incomes in different sectors.
The opportunity cost of any activity is defined as: (A) (B) (C) (D)
the time one spends involved in the activity. the income one spends on the activity. the value of the next best alternative activity forgone. the value of some unspecified alternative activity forgone.
What is the most satisfactory definition of opportunity cost? (A) (B) (C) (D)
The price of a commodity. The sacrifice of any alternative choice. The loss suffered by missing some bargain. The sacrifice of the next most desired alternative.
A likely reason behind the finding that citizens of richer countries tend to have fewer children is: (A) (B) (C) (D)
the diminishing marginal utility of children. the higher opportunity cost of having children. the increasing marginal utility of children. that children are considered normal goods.
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