c.
Consumers are too poor to afford the goods and services available.
d.
Consumers would be willing to purchase the same quantity of a good at a higher price.
ANSWER:
b
129. Which of the following best describes scarcity?
a.
Human desires are limited.
b.
All but the very wealthy must face choices.
c.
Resources are insufficient to satisfy all human desires.
d.
Choices are unnecessary.
ANSWER:
c
130. Which of the following happens to us because of scarcity?
a.
We can obtain more of a desirable good without sacrificing other goods and services.
b.
We face shortages of goods that prevail at current market prices.
c.
We sacrifice valuable alternatives to obtain more of the goods and services we desire.
d.
We have an opportunity cost of consumption, which is zero.
ANSWER:
c
131. Which of the following statements about scarcity is the most accurate?
a.
It is a problem in both communist and socialist countries, but not in market economies.
b.
It will never be eradicated because humans develop new wants as productive capabilities improve.
c.
It is a problem only in communist countries.
d.
It does not exist in wealthy countries.
ANSWER:
b
132. Which statement about an economy's resources is the most accurate?
a.
They consist of land, labour, capital, and entrepreneurial skills.
b.
They consist of land, labour, and entrepreneurial skills, but not capital.
c.
They are always efficiently utilized in wealthy nations.
d.
They are unlimited in a country like Canada.
ANSWER:
a
133. Which of the following is NOT a factor of production?
a.
entrepreneurship
b.
capital
c.
legal institutions
d.
labour
ANSWER:
c
134. Which of the following is NOT a factor of production?
a.
cash
b.
labour
c.
land
d.
entrepreneurship
ANSWER:
a
135. Which of the following is NOT a factor of production?
a.
entrepreneurship
b.
private property rights
c.
land
d.
capital
ANSWER:
b
136. Tywane works at a medical testing company. What type of resource is he considered to be?
a.
an entrepreneur
b.
management
c.
capital
d.
labour
ANSWER:
d
137. How are additions made to human capital?
a.
through increases in the general population of an area
b.
through improved education and on-the-job training
c.
through monthly deposits into a savings account
d.
through the purchase of tools and equipment by workers
ANSWER:
b
138. What is another term for economic resources?
a.
money
b.
factors of production
c.
financial foundations
d.
opportunity costs
ANSWER:
b
139. Which of the following will NOT directly add to improvements in human capital?
a.
MBA management classes for executives
b.
increases in take-home pay
c.
a customer-service program for new salespeople
d.
an increase in the computer-proficiency requirements for all post-secondary
ANSWER:
b
140. Which of the following is NOT an example of a factor of production?