Economics Test 1

MULTIPLE CHOICE

100

Which two basic economic principles create the need for choices?

unlimited wants, limited resources

200

The economic cost of a good or service is..

A- the amount of labor

B-cumulative cost of making and marketing it

C- Regret a consumer feels

D- value people place on it

D- value people place on it

300

According to the text, economics is 

A. the principles describing how people, businesses and governments ought to make financial choices 

B. the science of how and why people businesses and governments make choices

C. description of systems man creates in order to produce, buy and sell goods and services

D. study of theories

B. the science of how and why people businesses and governments make choices

400

What Biblical concept refers to a person's responsibility to make proper choices?

A- utility

B- Stewardship

C- Contentment 

D- Public good

B- Stewardship

500

After 12 years of faithful service, your family's car finally collapses beyond hope of repair and must be taken to the junkyard. Which economic term does this vehicle now best illustrate? 

A-free good

B- a nuisance good

C- scarce good

D- economic good

B- a nuisance good

VOCAB

100

Satisfaction a person receives from a choice.

opportunity benefit

200

tangible thing provided by God in nature

free good

300

Worth of something determined by its usefulness.

subjective value

400

Regret a person feels for an option not chosen

opportunity cost

500

The worth of something because of its nature.

intrinsic value

TRUE/FALSE

100

A rational person will always make the choice in which the opportunity cost is greater than the opportunity benefit

FALSE

200

To an economist, the scarcity of a natural resource, such as bananas, means that the supply has run short.

TRUE

300

As free goods become more scare, they become economic goods.

TRUE

400

Every choice has an opportunity cost

true

500

National unemployment is one major topic studies in microeconomics

false

RANDOM

100

Conservation of natural resources primarily shows a grasp of which economic concept?

scarcity

200

Recycling is an application of what biblical principle?

good stewardship using natural resources efficiently

300

Describe positive economics.

observing economic events and predicting evetns, while offering solutions 

400

According to the Austrian economist, Carl Menger, what determines the value of an object?

utility for the user

500

What approach to economic study focuses on value judgements?

normative

RANDOM

100

List 2 reasons why economics is considered a science.

observations, and predictions

200

Supposed you have $50 you get 7 utils for purchasing an online subscription for your x box, but you would  get 5 utils for going shopping with friends. What would be your net utility if you go shopping?

-2 utils

300

A family must quickly leave their home due to a fire. On her way out the door, the mother grabs the family photo album but leaves expensive paintings. What economic concept does this best illustrate?

subjective value

400

Which of the following examples falls into the sphere of economics? 

A- rise and fall of the stock market

B- Mothers trip to supermarket

C- University class on business management 

All of them

500

What principle are we reminded of in the broken window story?

hidden costs