The study of economics is primarily concerned with:

1.   ?    keeping private businesses from losing money.
2.   ?    demonstrating that capitalistic economies are superior to socialistic economies.
3.   ?    choices which are made in seeking to use scarce resources efficiently.
4.   ?    determining the most equitable distribution of society's output.

The "economic perspective" entails

1.   ?    rational behavior by individuals and institutions.
2.   ?    a comparison of marginal benefits and marginal costs in decision making.
3.   ?    the altering of behavior when marginal benefits and marginal costs change.
4.   ?    all of the above.

You should go to a movie

1.   ?    if the maginal cost of the movie exceeds its marginal benefit.
2.   ?    if the marginal benefit of the movie exceeds its marginal cost.
3.   ?    if your income will allow you to but a ticket.
4.   ?    because movies are inherently good products.

Even though local newspapers are very inexpensive, people tarely buy more than one of them each day. This fact:

1.   ?    is an example of irrational behavior.
2.   ?    implies that reading should be taught through phonics and isn't stressed in modern schools.
3.   ?    contradicts the economic perspective.
4.   ?    implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost.

The scarcity problem:

1.   ?    persists only because countries have failed to achieve continuous full employment.
2.   ?    persists because material wants exceed available productive resources.
3.   ?    has been solved in all industrialized nations.
4.   ?    has ben eliminated in affluent societies such as the United States.

Economics is primarily the study of:

1.   ?    why resources are scarce.
2.   ?    how advertising and sales promotion shape consumer wants.
3.   ?    how to make profitable investments.
4.   ?    how to use scarce resources efficiently.

The money payments made to owners of land, labor, capital, and entrepreneurial ability are:

1.   ?    interest, wages, rent, and profits.
2.   ?    rent, wages, dividends, and interest.
3.   ?    rent, profits, wages, and interest.
4.   ?    rent, wages , interest, and profits.
5.   ?    rent, wages, profit, and interest.

Opportunity costs is best defined as:

1.   ?    the montary price of any productive resource.
2.   ?    the amount of labor which must be used to produce one unit of any product.
3.   ?    the ratio of the prices of imported goods to the prices of exported goods.
4.   ?     the amount of one product which must be given up to produce one more unit of another product.

Allocative efficiency involves determining:

1.   ?    which output-mix will result in the most rapid rate of economic growth.
2.   ?    which production possibilities curve entails the minimization of opportunity costs.
3.   ?    the point on the produciton possibilities curve which will maximize society's satisfaction..
4.   ?    the optimal rate of technological progress.

The basic difference between consumer goods and capital goods is that

1.   ?    consumer goods are produced in the private sector and capital goods are produced in the public sector.
2.   ?    an economy that commits a relatively large proportion of its resources to capital goods must accept a lower growth rate.
3.   ?    the production of capital goods is not subject to the law of increasing opportunity costs.
4.   ?    consumer goods satisfy wants directly while capital goods satisfy wants indirectly.