d
12. What do all economic problems arise from?
a.
scarcity
b.
not enough money
c.
unemployment
d.
competition
ANSWER:
a
13. As defined by an economist, what does the word scarcity mean?
a.
Consumers are too poor to purchase the available goods and services.
b.
Demand exceeds supply at the current market price.
c.
The desire for goods exceeds our ability to produce them with limited available resources.
d.
Supply exceeds demand at the current market price.
ANSWER:
c
14. Which statement best describes the problem of scarcity?
a.
Scarcity means that shortages always occur in a market.
b.
It is impossible to satisfy unlimited human wants with limited resources.
c.
Because of scarcity, individuals do not face trade-offs when making decisions.
d.
As a result of scarcity, individuals do not have the ability to make choices.
ANSWER:
b
15. What problem is caused when NOT all human wants can be satisfied through current resources and technology?
a.
scarcity
b.
positive economics
c.
unemployment
d.
marginal costs
ANSWER:
a
16. What does economics primarily study?
a.
how to interpret corporate balance sheets and income statements
b.
how choices are made because of scarcity
c.
how to make money in the stock market
d.
how to operate a business
ANSWER:
b
17. What do economists mean when they say goods are scarce?
a.
Government programs are needed to lift families out of poverty.
b.
At the current price, consumers are willing to buy more of a good than suppliers are willing to produce.
c.
Consumers do not have enough money to purchase the goods available.
d.
The desire for goods and services exceeds our ability to produce them with limited resources.
ANSWER:
d
18. Which statement about scarcity is the most accurate?
a.
It is a problem that exists only in developing countries.
b.
It is a problem only in capitalistic economies.
c.
It is a problem that necessitates making choices that result in trade-offs.
d.
It is a problem only in the developed world.
ANSWER:
c
19. Which of the following most accurately describes a scarce good?
a.
a good for which available resources are insufficient to satisfy unlimited human desires for it
b.
a good that is always in demand at any price
c.
a good for which there is a shortage at the current market price
d.
a good for which it is impossible to increase production any further given the available resources and technology
ANSWER:
a
20. Which of the following questions is economics fundamentally concerned with?
a.
How are limited wants allocated to satisfy limited resources?
b.
How are limited resources allocated to satisfy unlimited wants?
c.
How are scarce resources allocated to satisfy limited wants?
d.
How are limited resources allocated to satisfy scarce wants?
ANSWER:
b
21. Which statement best describes the study of scarcity?
a.
using limited resources to best satisfy our unlimited desires
b.
using limited resources to promote full employment and price stability
c.
using unlimited resources to promote full employment and price stability
d.
using unlimited resources to best satisfy our unlimited desires