Econ 100 Ch 1 & 2 Quiz

marks = 35

STUDENT #________________________
Do not write name – ONLY Student #

Multiple Choice Questions
1. Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favourite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Tammie's trip to the concert is:
A) $300.
B) $450.
C) $500.
D) $600.
2. When a provincial government chooses to build more roads, the required resources are no longer available for spending on public education. This dilemma illustrates the concept of:
A) marginal analysis.
B) full employment.
C) full production.
D) opportunity cost.
3. When economists describe "a market," they mean:
A) a place where stocks and bonds are traded.
B) information networks that allow individuals to keep in touch with each other.
C) a hypothetical place where the production of goods and services takes place.
D) a mechanism which coordinates actions of consumers and producers to establish equilibrium prices and quantities.
4. The study of economics is primarily concerned with:
A) keeping private businesses from losing money.
B) demonstrating that capitalistic economies are superior to socialistic economies. C) choices which are made in seeking to use scarce resources efficiently.
D) determining the most equitable distribution of society's output.
5. Economics may best be defined as:
A) the interaction between macro and micro considerations.
B) the study of the behaviour of people and institutions in the production, distribution, and consumption of scarce goods.
C) the empirical testing of value judgments through the use of induction and deduction. D) the use of policy to refute facts and hypotheses.

Econ 100 Ch 1 & 2 Quiz

marks = 35

STUDENT