Page 1
6. The study of economics is primarily concerned with: A) keeping private businesses from losing money. B) demonstrating that capitalistic economies are superior to socialistic economies. C) choices that are made in seeking to use scarce resources efficiently. D) determining the most equitable distribution of society's output. 7. The economic perspective refers to: A) macroeconomic phenomena, but not microeconomic …show more content…
Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. This is a reflection of: A) resource scarcity and the necessity of choice. B) rational behavior. C) marginal costs that exceed marginal benefits. D) the tradeoff problem that exists between competing goals. 14. Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact: A) is an example of irrational behavior. B) implies that reading should be taught through phonics rather than the whole language method. C) contradicts the economic perspective. D) implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost. 15. Learning economics: A) is detrimental to good citizenship because economics emphasizes individualism. B) is helpful to employers, but not to workers and consumers. C) is important because economics is the science of earning money. D) helps students improve analytical skills that are in great demand in the workplace. 16. The study of economics: A) is similar to management, marketing, and finance since it emphasizes how to make money. B) is helpful to businesses, but not particularly helpful in making personal buying decisions. C) is mainly an academic, not a vocational subject. D) looks at the economy from the viewpoint of one's own pocketbook, not from the standpoint of society's interest. 17. An economic hypothesis: A) has the same meaning as an