Economics 2001
Section 2 – Weimer
Homework Assignment – Chapter 1 & 2
Due Date: Wednesday, September 10, 2014 at 11:59pm

Instructions: Pick the best answer from the choices for each question. Mark your answer on page 3 and either email the document back or turn in a paper copy in class prior to the due date.

1. The opportunity cost of studying for an economics test is

a. Negative because it may improve your grade.
b. Zero because you knew when you registered for the class that studying would be required.
c. The money you spent on tuition for the class.
d. The best alternative use of your time.

2. According to the law of increasing opportunity costs,

a. The more one is willing to pay for resources, the smaller will be the possible level of production.
b. Increasing the production of a particular good will cause the price of the good to remain constant.
c. In order to produce additional units of a particular good, it is necessary for society to sacrifice increasingly larger amounts of alternative goods.
d. None of the choices are correct.

3. Economic growth would best be represented by a

a. Shift outward of the production possibilities curve.
b. Shift inward of the production possibilities curve.
c. Movement from inside the production possibilities curve to a point on the production possibilities curve.
d. Movement from the production possibilities curve to a point inside the production possibilities curve.

4. The study of microeconomic theory focuses on the

a. Structure and performance of individual markets and the operation of the price system.
b. Operation of the entire economy.
c. Role of the banking system in the economy.
d. Interaction of international trade and domestic production of goods and services.

5. Which of the following countries (or regions) produce the most output annually?

a. Japan.
b. United States.
c. China.
d. Germany.

6. Which of the following is an indicator of how much output the average person would get if all output were divided up