#1 A friend points out to you that he sold stocks for $1000 that he bought a year ago for $1000. He says that even though he didn’t gain anything, at least he didn’t lose anything. As an economist, would you agree or disagree with him?

Solution Show
[break]
#2 True/False: The concept of opportunity cost can be described as the best forgone alternative.
Solution Show
[break]
#3 Your last final exam is tomorrow. All your friends finished their finals today and are inviting you to go see a movie tonight. What two economic ideas are you confronted by (assuming you want to see this movie)?
Solution Show
[break]
#4 You just graduated from high school. You have the option of taking a full time job that pays $30,000 a year or going to a 4 year university that would cost you $10,000 a year. What is the opportunity cost of attending college for one year?
Solution Show
[break]
#5 What does ceteris paribus mean and what why do we use it?
Solution Show
[break]
#6 What concept does economics primarily concern itself with?
Solution Show
[break]
#7 What does microeconomics primarily concern itself with?
Solution Show
[break]
#8 Macroeconomists attempt to understand things from the viewpoint of:
A. Government institutions
B. Big corporations.
C. The entire economy.
D. Individual people.
Solution Show
[break]
#9 Which of these is likely a microeconomics topic?
A. A ten year study of income levels for CEOs of tech startup companies.
B. An analysis of the productive capacity for a new piece of equipment.
C. A forecast of future oil prices.
D. Understanding the amount of satisfaction a person gets from eating a cheeseburger.
Solution Show
[break]
#10 “The unemployment rate fell by two percentage points last month.” This statement likely relates to which economic field of study?
Solution Show
[break]
#11 Normative statements are:
A. Statements of fact.
B. Speculations on the future.
C. Based on value judgments.
D. The best possible explanation with the given information.
Solution Show
[break]
#12 Positive statements are:
A. Statements of fact.
B. Speculations on the future.
C. Based on value judgments.
D. The best possible explanation with the given information.
Solution Show
[break]
#13 True or False: “The amount of money the government spends on welfare is at a good level” is an example of a positive statement.
Solution Show
[break]
#14 What is the difference between positive and normative statements?
Solution Show
[break]
#15 In short, what does the economizing problem deal with?
Solution Show
[break]
Categorize the following resources:
Natural gas
A plumber
Accounting software
Wood pulp used to make paper
An office building
Bill Gates (as the co-founder of Microsoft)
The current CEO of Microsoft (Hint: It’s not Bill Gates)
Solution Show
[break]
#16 Is money considered an economic resource?
Solution Show
[break]
#17 What separates an entrepreneur from a laborer?
Solution Show
[break]
#18 In economics, what does the word investment generally refer to?
Solution Show
[break]
#19 What’s the difference between consumer goods and capital goods?
Solution Show
[break]

Disclaimer

All works here are my own and are considered works in progress and may be subject to change at any time. The opinions expressed here are mine only unless otherwise noted. I am not being paid by a third party to endorse a product of any sort. These writings are written for my own references. I do not claim to be a professional of any kind so follow any information you find here at your own risk. The facts that I post on here are things that I believe to be true, but may not necessarily be so. This is the internet; do your own fact checking and take everything with a grain of salt.

Comments are closed.