Chapter 18:
What Is Economics?
1.
The fundamental economic problem is __________.
a.
how to make money
b.
scarcity
c.
decision making
d.
what type of economy to have
2.
Choosing between building a new school or improving a wastewater treatment plant is an example of __________.
a.
deciding WHAT to produce
b.
deciding HOW to produce
c.
deciding FOR WHOM to produce
d.
deciding HOW MUCH to produce
3.
To study a specific part of the economy, economists use __________.
a.
surveys
b.
think tanks
c.
action/reaction setups
d.
economic models
4.
Not going to a movie with friends in order to study is an example of __________.
a.
cost-benefit analysis
b.
opportunity cost
c.
macroeconomics
d.
microeconomics
5.
A mortgage payment is an example of a __________.
a.
fixed cost
b.
flexible cost
c.
variable cost
d.
marginal cost
6.
The extra cost of producing one additional unit of output is called the __________.
a.
unit price
b.
variable cost
c.
marginal cost
d.
output price
7.
A cost-benefit analysis is useful in __________.
a.
determining the number of employees to hire
b.
figuring corporate income taxes
c.
creating presentations for the Board of Directors
d.
deciding WHAT, HOW, and FOR WHOM to produce
8.
A market economy is based on __________.
a.
goods and services
b.
capitalism and free enterprise
c.
traditionalism and command
d.
incentives and traditionalism
9.
A low interest rate on a credit card is an example of a(n) __________.
a.
incentive
b.
"stick"
c.
marginal benefit
d.
free enterprise system
10.
One benefit of competition is __________.
a.
low prices
b.
better decision making
c.
marginal benefits
d.
a successful democracy
• Chapter Overview
• Student Web
Activities
• Self-Check Quizzes
• Interactive Tutor
• Chapter Overview
• Student Web
Activities
• Self-Check Quizzes
• Interactive Tutor
Unit 1
Unit 2
Unit 3
Unit 4
Unit 5
Unit 6
Unit 7
Unit 8
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
Chapter 21
Chapter 22
Chapter 23
Chapter 24
Chapter 25
Chapter 26
Chapter 27
Chapter 28
• Chapter Overview
• Student Web
Activities
• Self-Check Quizzes
• Interactive Tutor
• Web Lesson Plan
• Textbook Updates
• Teacher Forum
• Chapter Overview
• Student Web
Activities
• Self-Check Quizzes
• Interactive Tutor
• Current Events
• Partners' Sites
• Web Resources
• State Resources
