IIUICE. Choose the one alternative that best commpletes the statement or answers
ID: 1121686 • Letter: I
Question
IIUICE. Choose the one alternative that best commpletes the statement or answers the que resources were used in the past to prodsce new technologies that would have C) human wants are greater than what can be produced with the limited available resources 1) Scarcity exists because_ scarcily B) people do not have enough income D) the world is too small 2) Economics is A) the study of the allocation of scarce resources to satisfy the wants and desires of individ B) the study of the allocation of scarce resources to satisty the wants and desires of governt C) the institutional structure through which individuals in a society coordinate their diver D) the institutional structure through which governments coordinate the wants and desine 3) Microrconomics is the branch of economics that studies A) the behavior of individual decision-making units in the eoornomy B) the impact of inflation on the unemployment rate of a nation C) the effects and consequenioes of the D) the determination of the level of income in the economy aggregate behavior of all 4) Which of the following is NOT one of the three basic economic questions? A) How will it be produced? C) What price will be charged for the good? B) What and how much will D) For whom will it be produ 5) Phillip won free tickets to a concert in a radio station promotion. He takes hls friend Stu b that A) neither bears an opportunity cost since the tickets were free B) both bear the same opportunity cost since they are doing the same thing C) both bear an opportunity cost since they could have done other things instead of go D) Phillip bears no opportunity cost since he was originally going to the concert but St cost since he had not originally planned to go to the concert 6) Which of the following is NOT a factor of production? A) entrepreneurship B) financial capital C) economic capital ) Opportunity cost A) measures how many different opportunities you have to spend money B) refers to unattainable combination above the PPF boundary C) applies to production choices, but not to consumption choices D) is measured by how much of one commodity must be sacrificed in order to get s another goodExplanation / Answer
3. a. Microeconomics and macro economics are two branches of economics. Micro deals with individual behavior whereas macro deals with aggregate behavior.
4. c.Basic economic questions are how to produce, for whom to produce and what to produce.
6. C. Economic capital is not a factor of production. Factor of production are land, labor, capital and entrepreneur.
7. d. Opportunity cost is the cost of next best alternative that has been forgone.