a.  people's unlimited wants and their scarce resources.
    b.  people's limited wants and their scarce resources.
    c.  people's limited wants and their infinite resources.
    d.  people's limited income and their scarce resources.
    e.  human behavior and limited human wants. 

    a.  Offices and warehouses
    b.  Stocks and bonds
    c.  Machinery
    d.  Factories
    e.  Equipment 

    a.  A professional accountant
    b.  Commercial aircraft
    c.  An office building
    d.  Tax payments
    e.  A computer repair technician 

    a.  is also an entrepreneur.
    b.  always has perfect information.
    c.  never acts until he or she has perfect information.
    d.  seeks to gain the greatest possible satisfaction from purchases, using the available information.
    e.  will always avoid mistakes. 

    a.  macroeconomics.
    b.  normative economics.
    c.  objective economics.
    d.  microeconomics.
    e.  positive economics. 

    a.  Tariffs should be imposed on imported cars to increase domestic employment.
    b.  Tariffs should be imposed on imported cars to put pressure on other countries to open their markets to foreign competition.
    c.  Unemployment in the United States falls when people purchase domestically produced cars.
    d.  People should purchase U.S. cars if they wish to help the economy.
    e.  Congress should protect the U.S. automobile industry from foreign competition. 

    a.  usually normative.
    b.  a ceteris paribus variable.
    c.  the conclusion drawn from normative assumptions.
    d.  a simplified story or theory explaining some real-life observations.
    e.  used in the physical but not in the social sciences. 

    a.  an accurate representation of the real world.
    b.  a graphical representation of the real world.
    c.  a theory that captures every aspect of the real world.
    d.  a simplified explanation of the real world.
    e.  not a formal statement of a theory. 

    a.  is an example of the fallacy of composition.
    b.  is an example of association as causation.
    c.  describes rational behavior.
    d.  describes marginal analysis.
    e.  describes a negative relationship. 

    a.  the operation of a particular firm.
    b.  the labor market.
    c.  individual consumer behavior.
    d.  aggregate sectors of the economy such as the consumer sector or the business sector.
    e.  a detailed examination of how price and output decisions are made in specific markets. 

a.  Economists look at factors leading individuals to decide a particular idea is in their best interest.
b.  Economists do not ask whether a particular decision is in the individual's best interest.
c.  Choices must be made because of scarcity.
d.  A particular choice is made because that choice provides the individual making the choice the greatest satisfaction.
e.  A particular choice is made because that choice is best for society.

a.  Opportunity costs can always be expressed in money terms.
b.  Every choice involves opportunity costs.
c.  Opportunity costs are the highest-valued alternatives that must be given up when a choice is made.
d.  The full cost of an activity includes the opportunity costs.
e.  Economists refer to the forgone benefits of the next-best alternative as opportunity costs. 

a.  two apples.
b.  three oranges.
c.  two apples and three oranges.
d.  two apples or three oranges, whichever you most prefer.
e.  the difference in the prices of the three options. 

a.  Money spend on living expenses that are the same regardless of whether or not you attend college
b.  Lost salary
c.  Job related fringe benefits
d.  Interest that could have been earned on your money had you put the money into a savings account rather than spent it on tuition
e.  Opportunities sacrificed in the decision to attend college 

a.  is the Chinese food that you have up when you chose to eat Italian food.
b.  is the tuition that you pay to attend college.
c.  for a professor of economics is the pleasure that he or she derives from teaching economics.
d.  is sweets given up by a person who would never eat them even if he or she could.
e.  is the price paid for a ticket when you go to the movies. 

a.  This economy could produce 100 units of A and 20 units of B.
b.  The opportunity cost of producing more of A increases as A increases.
c.  The opportunity cost of producing more of B decreases as B increases.
d.  This economy could produce 70 units of A and 40 units of B.
e.  If this economy were to fully and efficiently employ all its resources, it could provide 100 units of A and 80 units of B. 

a.  20 units of B
b.  20 units of A
c.  3/4 units of B
d.  4/3 units of A
e.  1/2 units of B

a.  Moving from choice 2 to choice 3, the marginal opportunity cost of B is one unit of A.
b.  There are increasing opportunity costs associated with getting more B.
c.  Moving from choice 2 to choice 3, the opportunity cost of 20 more B is 20 units of A.
d.  Moving from choice 1 to choice 2, the opportunity cost of 20 more B is 10 units of A.
e.  All of these.

a.  Country X should export coffee to country Y, but the two countries should not exchange sugar.
b.  Country X should export coffee to country Y, and country Y should export sugar to country X.
c.  Country X should export sugar to country Y, and country Y should export coffee to country X.
d.  Country X should export sugar and coffee to country Y.
e.  Country Y should export sugar and coffee to country X. 

a.  that person can produce the good at a lower absolute cost than anyone else.
b.  that person can produce the good at a lower opportunity cost than anyone else.
c.  that person can do a better job than anyone else.
d.  that person spends less money in out-of-pocket expenses than anybody else.
e.  that person can produce the good at a higher opportunity cost than anyone else.