Question 1

Which of the following best describes the concept of scarcity in economics?

Accepted Answer

Scarcity is the condition where human wants exceed the resources available to satisfy them.

Question 2

A student decides to spend $$10 on a movie instead of buying a 10 $$sandwich. What is the opportunity cost of watching the movie?

Accepted Answer

The sandwich that could have been purchased with the $10.

Question 3

Which of the following is a microeconomic question?

Accepted Answer

How does a bakery decide how many loaves of bread to bake each day?

Question 4

Which statement is an example of a normative economic statement?

Accepted Answer

The government should reduce its budget deficit to ensure long-term stability.

Question 5

What is the marginal cost of watching one additional movie if it means you must give up higher grades?

Accepted Answer

The opportunity cost of lower grades due to less study time.

Question 6

Which of the following best illustrates a tradeoff?

Accepted Answer

Choosing to spend time studying instead of going out with friends.

Question 7

A rational choice is made when:

Accepted Answer

The marginal benefit equals or exceeds the marginal cost.

Question 8

Which of the following is a positive economic statement?

Accepted Answer

Morocco’s public debt is nearing 70% of GDP.

Question 9

If the marginal benefit of studying for an exam increases as the exam approaches, what economic principle does this illustrate?

Accepted Answer

Incentives

Question 10

Which of the following best describes the scientific method as used by economists?

Accepted Answer

A way to systematically check what works and what doesn’t work.

Question 11

Suppose a government increases unemployment benefits. Which method would an economist use to check the impact on unemployment rates?

Accepted Answer

Natural experiment

Question 12

Which equation best represents the opportunity cost of attending school full-time?

Accepted Answer

$$Opportunity\ Cost = Tuition + Books + Other\ Study\ Costs + Forgone\ Earnings$$

Question 13

If a multinational company invests in Morocco for lower production costs, but this also creates jobs and develops local suppliers, which concept is illustrated?

Accepted Answer

Both self-interest and social interest can be aligned.

Question 14

Which of the following is NOT a feature of an economic model?

Accepted Answer

It perfectly represents all aspects of the real economy.

Question 15

A student is considering whether to pursue an MBA. Which economic principle should guide their decision?

Accepted Answer

Comparing the marginal benefit and marginal cost of the MBA.

Question 16

Which formula best represents the net benefit of being in school?

Accepted Answer

$$Net\ Benefit = Total\ Benefit - Total\ Cost$$

Question 17

Which of the following is an example of a 'how much' choice made at the margin?

Accepted Answer

Deciding how many hours to study for an exam.

Question 18

If the marginal benefit of an activity diminishes over time, what does this imply?

Accepted Answer

The willingness to give up something for one more unit decreases.

Question 19

Which of the following best describes the difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics studies individual and business choices; macroeconomics studies aggregate effects on the national and global economy.

Question 20

Which equation best represents the relationship between marginal benefit and marginal cost in rational decision-making?

Accepted Answer

$$Marginal\ Benefit \geq Marginal\ Cost$$

Basic Principles of Economics: Scarcity, Choice, and the Economic Way of Thinking

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