econ 1 quiz

Question 1 Microeconomics is the branch of economics that focuses on the:

Question 2 The cost of a trade­off is known as the ________ of that decision.

Question 3 The U.S. federal government offers homeowners a tax deduction for their home loan interest payments. This reduction in taxes may have encouraged too many people to own a home. If the tax deduction caused people who otherwise would have rented to own, the tax deduction serves as a(n):

Question 4 In a growing number of cities, stores are required either not to make available plastic or paper bags or to do so only for an additional fee. If this fee can be refunded when you recycle the bag, the refund acts as a(n):

Question 5 More oranges are grown in Florida than North Dakota because Florida’s warm climate gives it a ________ in growing oranges.

Question 6 Because of scarcity:

Question 7 Economists believe that optimal decisions are made up to the point where:

Question 8 Why would economists find it surprising if the CEO of a large company does his or her own housework?

Question 9 When consumers discard their gasoline­powered automobiles for electric­powered ones, this partially reflects the ________ of gasoline:

Question 10 Opportunity cost is the ________ alternative forfeited when a choice is made.

Question 11 Economists believe that individuals compare the benefits and costs of various options when making a decision and in so doing act ________.

Question 12 The basic goal of economics is:

Question 13 The patent system:

Question 14 Who benefits from voluntary trade?

Question 15 As a new firm in the apple­picking business, you have considered adding an economist to your management team. What would this economist be unable to help your managerial team with?

Question 16 Public buildings in the United States are required to be accessible to the disabled and, as a result, almost all have an elevator. What would be an example of a positive direct incentive for those who can use stairs?

Question 17 A person has a comparative advantage in the production of a good when she or he can produce the product at a(n) ________ opportunity cost compared to another person.

Question 18 In economics, choices are necessary because of the presence of:

Question 19 Macroeconomics is the study of:

Question 20 Many stores are open 24 hours a day. When store managers make the decision to stay open 24 hours, it must be the case that:

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