MicroEconomics MCQ – Scarcity, Opportunity Cost, PPF
1. Economics is the study of how to
b. do the best we can with what we have
c. reduce our unlimited wants
d. increase our economic resources
2. Macroeconomics is the study of _________________.
a. big businesses
b. the choices that individuals and businesses make
c. the national economy and the global economy as a whole
d. all aspects of scarcity
3. To an individual, the problem of scarcity is seen as
a. limited income but unlimited wants
b. unlimited income but limited wants
c. limited income and limited wants
d. unlimited income and unlimited wants
4 . Because of scarcity,
a. there are no free goods
b. the economy is underdeveloped
c. the supplies of factors of production cannot be increased
d. households, firms and governments must make choices
5 . Opportunity cost is
a. the price of a product’s close substitute
b. the amount a person would be willing to spend on a product
c. the cost of the best alternative forgone
d. the cost of an investment project
6. The figure shows Roger’s production possibility frontier. Point a is an ____________.
b. attainable point at which production is efficient
c. attainable point at which production is inefficient
d. unattainable point at which production is efficient
7. A student works for a book shop for several days during the holidays. She is offered the alternative of being paid $50 cash or choosing $80 worth of books from the shelves. What is the opportunity cost to the student of choosing the books?
a. $30
b. $50
c. $80
d. $0
8. Vicky currently produces at point a in the figure. If Vicky moves from point a to point b, her opportunity cost of a modem is _______________________.
b. is zero
c. 0.3 printers
d. 3 printers
9. An example of market failure is when ________________________.
a. the price of coffee drops
b. a single producer controls the market and cuts output to raise price
c. the wages of fast food workers fall
d. credit card interest rates rise