Eco 101 Fall Semester 202011069 Test 1 Chapters 1 2 3

ECO 101, FALL SEM 2020(11069)TEST 1(CHAPTERS 1,2,3)V. NARAYANSWAMYALL QUESTIONS WORTH 4 POINTSNAME: Christopher Szczerba DATE: 9/22/201. For economists, the word "utility" means: A. versatility and flexibility.B. rationality.C. pleasure or satisfaction .D. purposefulness.2. A person should consume more of something when its marginal: A. benefit exceeds its marginal cost.B. cost exceeds its marginal benefit.C. cost equals its marginal benefit.D. benefit is still better3. Opportunity costs exist because: A. the decision to engage in one activity means forgoing some other activity.B. wants are scarce relative to resources.C. households and businesses make rational decisions.D. most decisions do not involve sacrifices or trade-offs.14. The basic purpose of the other-things-equal assumption is to: A. allow one to reason about the relationship between variables X and Y without the intrusion of variable Z.B. allow one to focus upon micro variables by ignoring macro variables.C. allow one to focus upon macro variables by ignoring micro variables.D. determine whether X causes Y or vice versa.5. A production possibilities curve shows: A. that resources are unlimited.B. that people prefer one of the goods more than the other.C. the maximum amounts of two goods that can be produced, assuming the full use of available resources.D. combinations of capital and labor