901. Which of the following is one of the three central problems that every economic system must solve?
a) How far should people be allowed to go in protecting their own property?
b) How are society’s scarce resources to be allocated?
c) How fair is it for some individuals to live in poverty while others are surrounded by luxury?
d) How involved should government be in regulating the activities of big business?
903. Macroeconomics is
a) the study of individual choice and how that choice is influenced by economic forces.
b) an analysis of economic reality that proceeds from the parts to the whole.
c) the study of the pricing policies of firms and the purchasing decisions of households.
d) the study of the overall economy and aggregate economic relationships.
904. Which of the following is a macroeconomic concern?
a) How profits are maximized by a firm.
b) The causes of unemployment in the United States.
c) The effects of agricultural price supports on the income of farmers.
d) Wage rates of electricians in Kansas City.
905. A production possibility curve usually has a negative slope because
a) there is an opportunity cost to any decision.
b) you get more of one benefit only if you get more of another benefit.
c) there is a direct relationship between obtaining the benefits of various choices.
d) obtaining the benefit of a decision is costless.
908. Households are on the:
a) supply side of factor markets and the demand side of goods markets.
b) demand side of both factor markets and goods markets.
c) demand side of factor markets and the supply side of goods markets.
d) supply side of both factor markets and goods markets.
18. Households in the aggregate use the largest share of their total
income to:
A) save.
B) consume.
C) do none of these.
D) pay taxes.
901. b 911. d 921. b 931.a
902. a 912. d 922. d 932.c
903. d 913. a 923. a 933.c
904. b 914. d 924. a 934.c
905. a 915. d 925. b 935.d
906 b 916. d 926. d
907. b 917. c 927. c
908. a 918. b 928. c
909. c 919. a 929. a
910. d 920. c 930. a