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Economics & Development
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Microeconomics Skill Assessment
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Quiz # 8
Microeconomics Quiz # 8
Instructions
Quiz:
Microeconomics Quiz # 8
Subject:
International Finance
Total Questions:
30 MCQs
Time:
30 Minutes
Note
Do not refresh the page while taking the test.
Results along with correct answers will be shown at the end of the test.
Start Quiz
Microeconomics Quiz # 8
End Quiz
Question
1
of 30
00:00
Purchasing-power-parity theory is about how exchange rates move to equalize the purchasing power of different______.
Currencies
Crypto
Symbols
None of the above
The main economic problem is that ______ causes us to choose from so many competing options that it is difficult to make the correct choice.
Causation
Demand
Surplus
Scarcity
Which of the following is an accurate statement about scarcity?
Because our wants are limited, they create a surplus of resources.
Because our wants are unlimited, they exceed the limited resources available.
Because our wants are limited, they are satisfied by limited resources.
Because our wants are unlimited, they try to make resources unlimited as well.
Economists assume that most individuals act as if they are motivated by ______.
Creativity
Selfishness
Greed
Self-interest
Our benevolent actions for others are influenced by our own ______ and ______.
Benefits; selflessness
Selfishness; unselfishness
Benefits; costs
Self-interest; selflessness
According to economists, people make decisions with ______ in mind.
An expected outcome
Few expectations
Probable disappointments
A selfish motive
Theories and models are ______ of the real world.
More complicated versions
More simplified versions
Accurate depictions
Elaborated depictions
Which of the following is an accurate statement about an economic hypothesis?
It argues how people should behave.
It analyzes how people have behaved.
It predicts how people will behave.
It records how people are behaving.
Which of the following would best enable an economist to discern general patterns of action?
Studying one person
Studying 5 people
Studying 50 people
Studying 1,000 people
Which of the following enables economists to focus on the effects of two variables on each other?
Scarcity
Normative statements
Fallacy of composition
Ceteris paribus
Which of the following is the term used when one event brings about another?
Causation
Correlation
Ceteris paribus
Aggregate
Which of the following is the term used when two events occur together?
Causation
Correlation
Ceteris paribus
Aggregate
Which of the following is an accurate statement about economists?
They rarely agree on important issues.
They try always to be objective.
They often make value judgments.
They believe most people are greedy.
A ______ is untestable.
Hypothesis
Positive statement
Normative statement
Theory
Currently, many economists believe the United States should substitute a national ______ for the current income tax.
Fee quota
Boycott
Tariff
Sales tax
Which of the following is probably the most objective?
A positive statement
A negative statement
A normative statement
An opinion statement
Office buildings, machines, and factories are all considered what type of economic resource?
Capital
Labor
Land
Tools
A person who combines the resources of labor, land, and capital to produce goods and services is called a(n) ______.
Economist
Entrepreneur
Manager
Manufacturer
Which of the following items is considered an economic good?
Garbage
Sunlight
Peanuts
Gravity
In economic decision making, the term opportunity cost refers to ______.
All the things you give up when you make a choice
The average costs incurred to gain a college degree
The financial risk involved in pursuing an opportunity
The value of the best alternative that was not chosen
In economics, the idea that people make the best choice they can, based on their values, information, and circumstances, is called ______.
Expected marginal thinking
Incentive-driven analysis
Net comparative advantage
Rational decision making
Economists consider the concept of need difficult to define because ______.
“needs” place extra emphasis on scarcity
It is hard to compare “needs” among people
They consider “wants” and “needs” the same
“needs” do not usually change over time
In economic decision making, the difference between expected marginal benefits and expected marginal costs is known as the ______.
Best choice
Net benefit
Optimal cost
Trade-off
Which of the following statements about incentives is most accurate?
Incentives are the same thing as price controls.
Incentives increase sales while reducing costs.
Incentives may be either positive or negative.
Incentives tend to have little impact on sales.
The voluntary exchange of goods and services is called ______.
Capital
Labor
Trade
Value
Production of citrus crops in Florida demonstrates what concept in economics?
Competition
Conservation
Distribution
Specialization
In a market economy, most of the resources are owned by ______.
CEOs and other top executives
Government-controlled firms
Federal government agencies
Private individuals and firms
What type of market failure occurs when a single seller dominates a market and excludes others from participating in mutually beneficial exchange?
Allocation
Efficiency
Externality
Monopoly
In a market economy, a trade-off often exists between the size of the economic pie and how it is divided, or between ______.
Efficiency and equality
Externality and income
Property and opportunity
Resources and incentives
Inflation is defined as ______.
An increase in the overall price level in an economy
Focused activity that assures the best use of resources
Government-mandated minimum or maximum prices
Measurable growth in real output per capita over time
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