Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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Part 1: Main Idea
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1.
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Which is not considered a need?
a. | food | b. | clothing | c. | shelter | d. | television |
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2.
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Which of the following best describes wants?
a. | limited and ever changing | b. | unlimited and ever changing | c. | limited and never
changes | d. | unlimited and never changes |
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3.
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Which of the following buys goods for personal use?
a. | consumer | b. | producer | c. | advocate | d. | client |
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4.
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Into what four categories do economist divide factors of production?
a. | land, labor, capital, and entrepreneurship | b. | land, labor, money,
and entrepreneurship | c. | resources, labor, capital, and
entrepreneurship | d. | resources, labor, money, and entrepreneurship |
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5.
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What does the saying "There is no such thing as a free lunch"
mean?
a. | some things cost nothing | b. | most things cost nothing | c. | most things cost
something | d. | everything costs something |
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6.
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Which of the following examines the costs and expected benefits of a
choice?
a. | choice-benefit analysis | b. | cost-profit analysis | c. | cost-benefit
analysis | d. | choice-profit analysis |
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7.
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Which is especially useful for comparing data?
a. | line graph | b. | bar graph | c. | pie
graph | d. | circle graph |
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8.
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Which of the following would macroeconomics study?
a. | a general rise in prices | b. | a decline in coffee prices | c. | the success rate of
sandwich shops | d. | the work habits of students |
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9.
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Which of the following explains economics as it is, not as it should be?
a. | microeconomics | b. | macroeconomics | c. | positive
economics | d. | normative economics |
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10.
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Who wrote The Wealth of Nations ?
a. | Alexander Hamilton | b. | Thomas Malthus | c. | Karl
Marx | d. | Adam Smith |
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11.
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A person who makes goods or provides services is called a
a. | consumer | b. | customer | c. | provider | d. | producer |
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12.
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The United States decides what goods to produce by letting
a. | only the government decide | b. | the producers and government
decide | c. | only the producers decide | d. | the producers and consumers
decide |
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13.
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A country that does not possess oil is unlikely to produce
a. | gasoline | b. | rice | c. | corn | d. | furniture |
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14.
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A society with a large unskilled labor force will most likely practice
a. | machine-intensive farming methods | b. | labor-intensive farming
methods | c. | machine and labor-intensive farming methods | d. | few intensive
farming methods |
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15.
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To be a successful entrepreneur requires a willingness to
a. | play it safe | b. | borrow money | c. | take
risks | d. | limit risks |
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16.
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The satisfaction received from using one more unit of a good or service is
called
a. | opportunity cost | b. | opportunity benefit | c. | marginal
cost | d. | marginal benefit. |
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17.
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The addition of new resources often enables a nation to
a. | produce more goods and services | b. | produce less goods and
services | c. | produce more goods but fewer services | d. | produce fewer goods but more
services |
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18.
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A graphic organizer that is especially useful for showing changes over time is
a
a. | line graph. | b. | bar graph. | c. | pie
graph. | d. | circle graph. |
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19.
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A pie graph would be best type of graph to show
a. | a comparison of Internet use in various regions of the world | b. | a comparison of
Internet use in Europe in 2000 and 2005 | c. | the change in Internet use in Europe over the
last five years | d. | the increase in Internet use among teenagers in
Europe |
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20.
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A microeconomist would study
a. | a general decline in prices | b. | a rise in tea prices. | c. | the ups and downs of
business cycles | d. | the impact of national tax policies |
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21.
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Adam Smith argued that a nation would be wealthier if it engaged in
a. | mercantilism | b. | free trade | c. | state-controlled
mercantilism | d. | state-controlled trade |
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22.
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The governments of some nations answer the question of what to produce to
a. | enhance free trade | b. | control the economy | c. | satisfy the consume
wants. | d. | improve efficiency |
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23.
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A country seeking to increase tourism will probably increase the production
of
a. | tractors | b. | hotels | c. | weapons | d. | gaskets |
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24.
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An example of real capital is
a. | a college education | b. | a warehouse | c. | job
training | d. | self-improvement courses |
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25.
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Deciding to go to a ballgame rather than do your homework is an example of
a(n)
a. | production possibility | b. | marginal cost | c. | trade-off | d. | opportunity
expense |
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