Lecture1I
troductio
Q1TRUEFALSE
1Eco
omicsisthestudyofhoweve
lygoodsa
dservicesaredistributedwithi
societyF
2Eco
omicsisthestudyofhowsocietyallocatesitsu
limitedresourcesF3Withcarefulpla
i
gweca
usuallygetsomethi
gthatwelikewithouthavi
g
togiveupsomethi
gelsethatwelikeF4Choosi
g
ottoatte
daco
certsothatyouca
studyforyourexamisa
exampleofatradeoffT5Gover
me
tpoliciesthatimproveequalityusuallyi
creaseefficie
cyatthesame
timeF6A
i
creasei
themargi
alcostofa
activity
ecessarilymea
sthatpeoplewill
olo
gere
gagei
a
yofthatactivityF7Aratio
aldecisio
makertakesa
actio
ifa
do
lyifthemargi
alcostexceeds
themargi
albe
efitF8Amarketeco
omyca
otproduceasociallydesirableoutcomebecause
i
dividualsaremotivatedbytheirow
selfishi
terestsF9Marketfailurereferstoasituatio
i
whichthemarketdoes
otallocateresources
efficie
tlyT10Marketpowera
dexter
alitiesaretwopossiblecausesofmarketfailureT
Q2MULTIPLECHOICEQUESTIONS
A1Eco
omicsdealsprimarilywiththeco
ceptofascarcitybmo
eycpovertydba
ki
g
B2Whichofthefollowi
giscorrectaThewordeco
omycomesfromtheGreekwordfor“ratio
althi
ker”bEco
omistsstudythema
ageme
tofscarceresourcescBecauseeco
omistsbelievethatpeoplepursuetheirbesti
tereststheyare
oti
terestedi
howpeoplei
teractdAlloftheabovearecorrect
D3Thephe
ome
o
ofscarcitystemsfromthefactthatamosteco
omies’productio
methodsare
otverygoodbi
mosteco
omieswealthypeopleco
sumedisproportio
atequa
titiesofgoodsa
dservicescgover
me
tsrestrictproductio
oftooma
ygoodsa
dservicesdresourcesarelimited
fA4Whe
asocietyca
otproduceallthegoodsa
dservicespeoplewishtohaveitissaidthattheeco
omyisexperie
ci
g
ascarcitybsurplusesci
efficie
ciesdi
equalities
C5Theadage