01 What Economics Is All About

1.1 Scarcity随堂测验

1、1. Economics deals primarily with the concept of ( )


1、An important element of the market process is that ( )
    A、although people trade voluntarily, one party “wins” and the other party “loses”.
    B、the government determines the extent of market activity in order for all parties to benefit.
    C、people are better off if they are self-sufficient than if they trade with others in the market.
    D、people trade voluntarily and all parties expect to benefit.

2、Adam Smith argues in The Wealth of Nations that an economy will produce more goods and services if ( )
    A、people act in the public interest than if they act selfishly.
    B、people act selfishly, than if the government directs economic activity.
    C、the government controls the use of the nation’s scarce resources.
    D、people ignore their own interests and contribute to national wealth as a whole.

3、Which of the following activities would occur in a market for factors of production? ( )
    A、Reesa buys a new computer to help balance her personal checkbook.
    B、Randy pays a speeding ticket.
    C、Ian mows his grass.
    D、General Motors hires additional workers to run a third-shift at a factory.

4、Which of the following activities would occur in a market for goods and services? ( )
    A、Harry mows his grass.
    B、General Motors hires additional workers to run a third shift at a factory.
    C、Jane bakes pies for Thanksgiving dinner.
    D、Dolly buys a ticket to a ball game.

5、An economic model is ( )
    A、a mechanical machine that replicates the functioning of the economy.
    B、a fully detailed, realistic description of the economy.
    C、a simplified representation of some aspect of the economy.
    D、a computer program that predicts the future of the economy.

6、The circular-flow diagram illustrates that, in markets for the factors of production, ( )
    A、households are sellers, and firms are buyers.
    B、households are buyers, and firms are sellers.
    C、households and firms are both buyers.
    D、households and firms are both sellers.

7、A point inside the production possibilities frontier is ( )
    A、efficient, but not feasible.
    B、feasible, but not efficient.
    C、both efficient and feasible.
    D、neither efficient nor feasible.

8、An economy produces hot dogs and hamburgers. If a discovery of the remarkable health benefits of hot dogs were to change consumers’ preferences, it would ( )
    A、expand the production possibilities frontier.
    B、contract the production possibilities frontier.
    C、move the economy along the production possibilities frontier.
    D、move the economy inside the production possibilities frontier.

9、All of the following topics fall within the study of microeconomics EXCEPT ( )
    A、the impact of cigarette taxes on the smoking behavior of teenagers.
    B、the role of Microsoft’s market power in the pricing of software.
    C、the effectiveness of antipoverty programs in reducing homelessness.
    D、the influence of the government budget deficit on economic growth.

10、Which of the following is a positive, rather than a normative, statement? ( )
    A、Law X will reduce national income.
    B、Law X is a good piece of legislation.
    C、Congress ought to pass law X.
    D、The president should veto law X.


1、What is the opportunity cost of seeing a movie?

2、Should an economic model describe reality exactly?