Chapter 1 - Prep Quiz

Question 1

Resource use is efficient when:

Answer 1

it is not possible to make someone better off without making someone else worse off

Question 2

True or false: What we do in pursuit of our self interest can further the social interest

Answer 2

True

Question 3

The income earned by the people who sell the services of the factor of production​ _______ is called​ _______.

Answer 3

land; rent

Question 4

What is an example of labour?

Answer 4

Someone in a work position. Like a CEO

Question 5

Which is true?
1. Policy questions involve a blend of positive and normative questions
2. For a given​ goal, economics compares the total benefit of achieving the goal with its total cost to find the best use of the available resources.
3. Economics can help with the normative part of a policy goal.

Answer 5

1 is correct

Question 6

When price of an activity falls, you are incentized to…
- do that activity more
- do that activity less
- not change anything

Answer 6

do that activity more.

Question 7

What is the formula to find the slope of two points?

Answer 7

(y2 - y1) / (x2 - x1)