Ohio State University ECONOMICS 2001

Ohio State University

ECONOMICS 2001.01

Microeconomics Recitation Quiz 1

1)Economics is best defined as:

2. Why does Scarcity exist?

3. Which of the following resources is considered land?

A truck used to haul away garbage A pond where fish can be caught

An autoworker building cars in a factory A chef who opens a new restaurant

4. Which of the following is NOT one of the three key economic ideas?

a)            Decisions are made at the margin

b)            People attempt to optimize their outcomes

c)            People have wants

d)            People’s decisions are based on their self-interest

5. Jenny decides to go to college instead of working at her dad's firm. The all-inclusive cost of going to college for Jenny is $20,000. Jenny's salary at her dad's firm would have been

$50,000. Which of the following represents Jenny's opportunity cost of going to college?

6. Which of the following is a positive statement?

a)            The temperature is 45 degrees today

b)            Donald Trump should be President

c)            The price of milk ought to be $2 per gallon

d)            Pollution is the most important economic problem that needs to be addressed

7. You should stop eating additional scoops of ice cream when 

8. Which of the following statements is true?

a)            Microeconomics focuses on households and businesses, while macroeconomics focuses on the government.

b)            Microeconomics focuses on domestic economic issues and macroeconomics focuses on international economic issues.

c)            Microeconomics focuses on individual decision makers while macroeconomics focuses on the economy as a whole.

d)            Microeconomics focuses on buyers while macroeconomics focuses on sellers.

9. The marginal benefit curve     .

10. Which of the following statements is true?

a)            Scarcity does not affect the very wealthy.

b)            Scarcity cannot be eliminated.

c)            Sacrifices that do not involve money have a zero cost.

d)            The assumption that people respond to their self-interest can be restated as people are greedy.