← Micro Test
5 Written Questions
5 Matching Questions
- Opportunity cost
- The price System
- a sometimes we encounter things we can enjoy without having to pay for them. For example, we could attend a "free concert at the local park" that is offered to anyone and everyone for the taking. Economically speaking, is this activity, or any for that matter, really free?
- b In the United States, a language of prices is used for communication between buyers and sellers. Discuss three benefits of a system like this.
- c What are the "levels of risk" of investments that exist today? Give some examples of investments and explain their risk and explain the importance of investment to consumers
- d What is the ECONIMIC rationale as to why people littler the hallways or parking lot of our school, or the highways of our country?
- e What are stocks? What is their purpose? How do they help or hurt the economy? The businesses? The employees?
5 Multiple Choice Questions
- Why is it that when the price of beef changes, people significantly change the amount of beef they purchase, but when the price of water changes the amount of water used does not change significantly?
- Why is it important to study (or at least have a working knowledge of) the stock market and its activities.
- In the United States, a language of prices is used for communication between buyers and sellers. There are three drawbacks to this system; explain two of them and give AN EXAMPLE FOR EACH.
- Briefly describe the income effect and its impact on the AMerican consumer. What economic ability of consumers does it specifically impact, and is it good or bad? Explain.
- What is the goal of any market with regard to the supply of products and the demand for them? SPECIFICALLY, what causes a shortage or a surplus in a market, and how can this be mediated?
5 True/False Questions
Production Possibilities → A nation has recently discovered a new and more efficient way of using food sraps as an energy source. What might happen in this nation with regard to its ability to be productive?
Value and Utility → How can economic concepts be used to explain the idea, "one man's trash is another man's treasure?" How is the concept affected by "too much of a good thing?"
Types of business Organizations → What are the specific ways American businesses can be set up? What is good and bad about each of them?
Competition and Allocation → How can economic concepts be used to explain the idea, "one man's trash is another man's treasure?" How is the concept affected by "too much of a good thing?"
Saving → What are stocks? What is their purpose? How do they help or hurt the economy? The businesses? The employees?