Suppose you bought a concert ticket from Ticketmaster for $50, but when you got to the concert scalpers (individuals who re-sell tickets at the event) were selling tickets in the same seating area as yours for $25. What is probably true?

A.The Ticketmaster price is an equilibrium price.

B.There is an excess supply of tickets for this concert at the Ticketmaster price.

C.The ticket you bought was under-priced for the market.

D.There is excess demand for this concert at the Ticketmaster price.

正确答案：There is an excess supply of tickets for this concert at the Ticketmaster price.

Economists recognize that because people have limited resources:

A.our future is bleak.

B.they will never be happy.

C.they have to make trade-offs.

D.government intervention is necessary.

正确答案：they have to make trade-offs.

Economics is the study of:

A.the financial concerns of businesses and individuals.

B.choice in the face of limited resources.

C.the role of government in limiting the choices people make.

D.whether we will have enough resources in the future.

正确答案：choice in the face of limited resources.

Economics is best defined as the study of:

A.how people make choices in the face of scarcity and the implications of those choices for society as a whole.

B.inflation, interest rates and the stock market.

C.supply and demand.

D.the financial concerns of businesses and individuals.

正确答案：how people make choices in the face of scarcity and the implications of those choices for society as a whole.

If all the world’s resources were to magically increase one hundredfold, then:

A.people would still have to make trade-offs.

B.trade-offs would become unnecessary.

C.economics would no longer be relevant.

D.scarcity would disappear.

正确答案：people would still have to make trade-offs.

An implication of scarcity is that:

A.people must make trade-offs.

B.people will never be happy.

C.some people will always be poor.

D.making trade-offs becomes unnecessary as wealth increases.

正确答案：people must make trade-offs.

The Scarcity Principle states that:

A.society will eventually run out of resources.

B.with limited resources, having more of one thing means having less of another.

C.some countries have fewer resources than others.

D.people don’t have enough money to buy what they want.

正确答案：with limited resources, having more of one thing means having less of another.

Chris has a one-hour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is:

A.not an economic problem because it’s an hour that Chris has no matter what he does.

B.an economic problem because the tuition Chris pays covers the cost of both the gym and the library.

C.an economic problem because Chris has only one hour, and engaging in one activity means giving up the other.

D.not an economic problem because neither activity costs money.

正确答案：an economic problem because Chris has only one hour, and engaging in one activity means giving up the other.

Forest lives in complete isolation in Montana. He is self-sufficient and feeds himself through hunting, fishing, and farming. Which of the following statements about Forest is true?

A.Forest is not required to make trade-offs because he is self-sufficient.

B.Forest has unlimited resources.

C.Forest doesn’t have to consider costs and benefits.

D.Forest has to make trade-offs.

正确答案：Forest has to make trade-offs.

The Scarcity Principle applies to:

A.consumers primarily.

B.firms primarily.

C.poor people primarily.

D.everyone.

正确答案：everyone.

The Cost-Benefit Principle indicates that an action should be taken if:

A.its average benefits exceed its average costs.

B.its extra benefit is greater than or equal to its extra cost.

C.its total benefits exceed its total costs.

D.its net benefit (benefit minus cost) is zero.

正确答案：its extra benefit is greater than or equal to its extra cost.

Whether studying the output of the U.S. economy or how many classes a student will take, an unifying concept is that:

A.wants are unlimited and resources are scarce, so trade-offs have to be made.

B.both wants and resources are unlimited.

C.wants are limited and resources are unlimited, so trade-offs have to be made.

D.wants are limited and resources are unlimited, so trade-offs are unnecessary.

正确答案：wants are unlimited and resources are scarce, so trade-offs have to be made.