Student ID#_Name Quiz 1 (Principles of Economics I, Spring 2xxx)
Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Economists, like mathematicians, physicists, and biologists, a. make use of the scientific method. b. try to address their subject with a scientist¡¯s objectivity. c. devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories. d. All of the above are correct. 2. Which of the following transactions does not take place in the markets for the factors of production in the circular-flow diagram a. Jason provides plumbing services for a plumbing company and receives an hourly wage from the company for his services. b. Jennifer works as a marriage counselor and her clients pay her on a per-hour basis for her services. c. Brody owns several shopping malls and receives rent payments from the companies that operate those malls. d. Bree sells advertising for a newspaper and receives a co¡¦(»ý·«)
mmission from the newspaper company for each advertisement that she sells. 3. Efficiency is illustrated by a. both the production possibilities frontier and the circular-flow diagram. b. neither the production possibilities frontier nor the circular-flow diagram. c. the production possibilities frontier only. d. the circular-flow diagram only. 4. Which of the following concepts cannot be illustrated by the production possibilities frontier a. efficiency b. opportunity cost c. equality d. trade-offs
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Figure 1
5. Refer to Figure 1. One difference between points A and B is that a. Point B is unattainable with current resources, but point A is attainable. b. All resources are fully employed at point A but there is unemployment at point B. c. More output can be produced at point A but no additional output can be produced at point B. d. This economy produces more blankets at point B than at point A. 6. The law of supply states that, other things equal, when the price of a good a. f
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