Question: True or false: The goal of consumer choices is to maximize utility.

Answer: True

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Question: The additional satisfaction of consuming a good or service is

Answer: marginal utility

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Question: In making the best economic choices, consumers compare the benefits of the choice to

Answer: the costs of the choice.

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Question: True or false: Sarah is choosing between two products. Product A gives her 8 units of marginal utility per dollar, and product B gives her 6 units of marginal utility per dollar. Based on this information Sarah should buy a unit of product B.

Answer: False

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Question: True or false: Human capital is the skills, knowledge and experience of workers.

Answer: True

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Question: A worker with more human capital tends to earn

Answer: A higher salary.

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Question: _ is measured by how many goods and services a worker produces in an hour.

Answer: Productivity

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Question: True or false: When worker productivity increases, costs of producing goods and services increases.

Answer: False

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Question: Research suggests improvements in human capital explains what percentage of the growth in U.S. productivity from 1950 to the early 2000s?

Answer: 20%

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Question: True or false: Accountants include implicit or opportunity cost in their profit calculations.

Answer: false

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Question: Business forms that have unlimited personal liability include

Answer: Sole proprietorships and partnerships

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Question: true or false: An entrepreneur is primarily motivated by profit.

Answer: True

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Question: Entrepreneurs thrive in economies with

Answer: little government intervention

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Question: True or false: All market structures are based on the same number of sellers in a market.

Answer: False

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Question: In a competitive market sellers choose

Answer: quantity only.

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Question: True or false: Monopoly markets have significant barriers to entry.

Answer: True

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Question: Market structures with significant to total barriers of entry are

Answer: oligopolies and monopolies

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Question: True or false: Firms are sellers in the product market.

Answer: True

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Question: In which market are firms sellers and in which market are firms buyers?

Answer: sellers in the product market and buyers in the factor market

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Question: The rest of the world impacts the circular flow with leakages and injections. Which of the following correctly identify these leakages and injections?

Answer: leakage of imports and injection of exports

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Question: True or false: If injections exceed leakages. the economy grows.

Answer: True

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