01
Choose one
1 point
Which situation best illustrates economic scarcity?
Free Practice Quiz Question List
Foundations of Microeconomics: Choices, Costs, and Production Online Quiz Questions
Use this free practice quiz with 10 questions to review Foundations of Microeconomics: Choices, Costs, and Production, test your knowledge, and prepare for your next test or exam.
10 questions
02
True or false
1 point
True or false: If a person has already purchased a nonrefundable movie ticket, the ticket price should determine whether the person stays for a movie that has become unpleasant.
- A
True
- B
False
03
Choose one
1 point
A bakery can produce 100 additional cookies for an additional labor and ingredient cost of $140 and expects $180 in additional revenue. Assuming no other relevant effects, what should the bakery do?
- A
Produce the cookies, because the marginal benefit exceeds the marginal cost.
- B
Do not produce the cookies, because any additional production is inefficient.
- C
Do not produce the cookies, because the advertising bill must first be recovered.
- D
Produce the cookies only if total revenue exceeds all historical business costs.
04
Written response
1 point
A worker can produce 12 tables or 48 chairs per week. What is the opportunity cost of producing one table? Enter the value in chairs.
05
Choose one
1 point
An economy's production possibilities frontier shows the maximum feasible combinations of two goods. What does a point inside the frontier represent?
- A
Unattainable because it exceeds current productive capacity.
- B
Attainable but productively inefficient.
- C
Productively efficient and necessarily allocatively efficient.
- D
Outside the economy's current resource and technology limits.
06
True or false
1 point
True or false: A production possibilities frontier by itself identifies which feasible combination of goods society prefers most.
- A
True
- B
False
07
Fill in the blank
1 point
A decision-maker compares the additional benefit and additional cost of one more unit of an activity. This process is called .
08
Choose all
1 point
Which changes would generally shift an economy's production possibilities frontier outward? Select all that apply.
- A
An increase in the economy's available capital
- B
A technological improvement that raises productivity
- C
Worker training that improves productivity in both industries
- D
Consumers changing their preferences between the two goods
- E
A flood that destroys factories used to produce both goods
09
Written response
1 point
A firm's marginal benefits for units 1–5 are $50, $42, $34, $26, and $18, while its marginal costs are $20, $25, $30, $35, and $40. What is the total net benefit from producing the profit-maximizing number of units? Enter the amount in dollars.
10
Choose one
1 point
A city charges a fee for entering a congested downtown area during peak hours. Which statement best explains the economic effect of this fee?
- A
It lowers the marginal cost of driving and makes driving more attractive.
- B
It guarantees that every driver will stop visiting downtown.
- C
It raises the marginal benefit of driving regardless of the time of day.
- D
It raises the marginal cost of driving and may encourage alternative travel choices.