Question 1

Scarcity means that
A) what we can produce with our resources is greater than our material wants.
B) resources are unlimited.
C) wants are greater than what we can produce with out resources.
D) governments must make up for shortages in resources.
E) choices made in self-interest cannot be the same as those made in the social interest.

Accepted Answer

Scarcity refers to the situation where wants exceed the resources available to satisfy those wants. This means that we can only produce a limited amount of goods and services with the resources we have, while people have unlimited wants and desires. Therefore, the best choice is C, which accurately reflects the definition of scarcity.

Question 2

When you make the decision to spend your time attending class, which economic question are you answering?
A) What?
B) How?
C) For whom?
D) Why?
E) Social interest

Accepted Answer

A

Question 3

Scarcity forces people to
A) choose among available alternatives.
B) cheat and steal.
C) be unwilling to help others.
D) live at a low standard of living.
E) consume as much as they can as quickly as they can.

Accepted Answer

Scarcity means that there are limited resources available to fulfill unlimited wants and needs. Therefore, people are forced to make choices among available alternatives to allocate these scarce resources.

Question 4

Scarcity exists because
A) human wants exceed the resources available to satisfy them.
B) some individuals have low income.
C) the costs of production are high.
D) some people make bad economic decisions.
E) people take too much leisure time.

Accepted Answer

Scarcity exists because there are not enough resources to satisfy all of the human wants and needs. This is because resources like natural resources, labor, and capital are limited, while the wants and needs of people are infinite. Therefore, choices must be made about which wants and needs to prioritize, leading to scarcity. The other options provided do not accurately reflect the cause of scarcity.

Question 5

Scarcity
A) is the inability to satisfy all our wants.
B) leads to higher prices.
C) applies only to people living in poverty.
D) is not something that affects very rich people.
E) used to exist everywhere but has been eliminated in advanced economies.

Accepted Answer

Scarcity refers to the fact that resources are limited in comparison to human wants, which are unlimited. Therefore, scarcity leads to the inability to satisfy all our wants. This often leads to higher prices as people compete for the limited resources. Scarcity affects people at all income levels, not just those living in poverty. Even wealthy individuals and nations face scarcity when it comes to resources like time, money, and natural resources. While advancements in technology and production have made some things more abundant, scarcity still exists in advanced economies.

Question 6

What is the reason that all economic issues and problems occur?
A) All nations use some form of money to buy and sell goods and services.
B) Humans are always wasteful and inefficient in production and consumption.
C) Powerful governments are able to control production and consumption.
D) Human wants exceed the resources available to satisfy them.
E) People seek only their own self-interest.

Accepted Answer

Economic issues and problems occur because human wants and needs are unlimited, but resources to satisfy these wants are limited. This leads to scarcity, which forces individuals and nations to make choices about how to allocate their resources. This results in issues such as inequality, poverty, and competition, among others.

Question 7

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of
A) scarcity.
B) why to produce.
C) macroeconomics.
D) microeconomics.
E) social interest versus self-interest.

Accepted Answer

Scarcity refers to the situation where the available resources are limited while the human wants and needs are unlimited. Therefore, people have to make choices on how to allocate the available resources to satisfy their needs and wants, which results in the problem of scarcity.

Question 8

Which of the following best defines economics?
A) Economics teaches how to limit our wants.
B) Economics studies how to choose the best alternative when coping with scarcity.
C) Economics helps you earn as much money as possible.
D) Economics analyzes all aspects of human behavior in general.
E) Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.

Accepted Answer

Economics is the study of how people allocate scarce resources to meet their unlimited wants and needs. Therefore, the best definition of economics is option B, which states that economics studies how to choose the best alternative when coping with scarcity. Option A is incorrect as economics does not teach people to limit their wants; rather, it studies how people make choices given their unlimited wants amidst limited resources. Option C is also incorrect as economics is not solely focused on earning as much money as possible. Option D is too broad and does not accurately capture the specific field of study that is economics. Option E is partially correct but is too specific in its description of economics, as economics also studies topics such as markets, production, consumption, and distribution.

Question 9

Economics is defined as the social science that studies
A) how a person can get everything he or she wants.
B) the reason money exists.
C) the way to eliminate choices in our decisions.
D) the choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity.
E) how choices made in the social interest must conflict with choices made in the self-interest.

Accepted Answer

Economics is the study of how societies allocate scarce resources among competing needs and wants. This involves analyzing decision-making by individuals, businesses, and governments as they try to satisfy their unlimited wants with limited resources. Therefore, D is the best choice as it accurately defines the purpose of economics.

Question 10

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.
A) for whom
B) what
C) where
D) how
E) why

Accepted Answer

Computerizing production schedule is a method or process of how to manage and control production.

Question 11

Which of the following statements best describes the study of economics? Economics studies how
A) to organize production so that scarcity does not occur.
B) firms make profits.
C) we make choices in the face of scarcity.
D) to create incentives so that scarcity does not exist.
E) businesses reach decisions.

Accepted Answer

Economics is the study of how individuals and societies make choices in the face of scarcity. It analyzes the production, distribution, and consumption of goods and services in order to understand how individuals and firms allocate resources in efficient and effective ways. While economics may involve the study of incentives and profits, its underlying focus is on the allocation of scarce resources in the face of unlimited wants and needs.

Question 12

Economics is the social science that studies
A) the real reasons people buy goods and services.
B) the psychology of individuals and businesses.
C) whether a nation has enough natural resources.
D) how people make choices to cope with scarcity.
E) how choices made in the social interest could eliminate scarcity.

Accepted Answer

Economics is concerned with how people make choices when faced with scarcity, which means having to choose between different options because resources are limited. Economics studies how people allocate their limited resources to achieve their goals, which involves understanding how individuals, businesses, and governments make decisions about what to produce, how to produce it, and for whom to produce it.

Question 13

Scarcity requires that we
A) produce efficiently.
B) learn to limit our wants.
C) have the most rapid economic growth possible.
D) have unlimited resources.
E) make choices about what goods and services to produce.

Accepted Answer

The answer of Scarcity requires that we
A) produce efficiently.
B) learn...

Question 14

The question of "What goods and services get produced? " most closely relates to which of the following issues?
A) the distribution of goods and services in the economy
B) producing goods and services in the least costly manner
C) building a missile defense system, or putting a computer in every elementary school classroom
D) obtaining specialized training to increase one's income
E) taxing high income workers to give payments to poor households

Accepted Answer

This question relates to the allocation of resources, which is a fundamental issue in economics. It involves deciding how to use limited resources to meet various needs and wants in society. The example of choosing between building a missile defense system or putting a computer in every elementary school classroom illustrates the trade-offs and opportunity costs associated with these decisions.

Question 15

The study of economics is best described as a study of
A) the factors that influence the stock and bond markets.
B) capitalism.
C) the choices made in producing goods and services.
D) coping with scarcity, and choices made as a result of scarcity in a society.
E) how people earn a living.

Accepted Answer

Economics is the study of how society manages its scarce resources. Since resources are limited and human wants are unlimited, choices must be made about what goods and services to produce, how to produce them, and for whom they are produced. This is the central theme of economics.

Question 16

Which of the following statements best describes the study of economics? Economics studies how
A) to organize production so that scarcity does not occur.
B) firms make profits.
C) we make choices in the face of scarcity.
D) to create incentives so that scarcity does not exist.
E) businesses reach decisions.

Accepted Answer

Economics is the study of how individuals and society make choices in the face of scarcity. It is concerned with how people use resources to satisfy their needs and wants. This involves understanding how individuals and organizations make decisions, how markets allocate resources, and how government policies affect economic outcomes. While the other options may be relevant to economics, they do not encompass its full scope.

Question 17

Scarcity means we must
A) consume less.
B) produce less.
C) make choices.
D) earn more.
E) work more.

Accepted Answer

Scarcity refers to the limited availability of resources such as time, money, and goods/services. Therefore, we must make choices on how to allocate these resources in the most efficient manner, considering that there are trade-offs and opportunity costs associated with each choice. Consuming less or producing less may be necessary to manage scarcity, but it depends on the specific situation and priorities. Earning more or working more are not necessarily solutions to scarcity, as they may not address the root cause of the scarcity problem.

Question 18

When Delta decides to quit flying to Lithuania, it directly answers the ________ question.
A) what
B) why
C) for whom
D) how
E) when

Accepted Answer

The decision to stop flying to Lithuania directly answers the "what" question, as it specifies what action Delta is taking.

Question 19

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.
A) what
B) how
C) for whom
D) where
E) why

Accepted Answer

Deciding to increase production of hybrid cars directly answers the "what" question in economics, which concerns what goods and services to produce.

Question 20

Of the three major economic questions, which of the following is the best example of a "What? " question?
A) Should automobiles be produced using workers or robots?
B) Should higher-income or lower-income people buy SUVs?
C) Should we make faster microprocessors or pest-resistant corn?
D) Should migrant workers or domestic workers be used to pick grapes?
E) What should doctors be paid?

Accepted Answer

The answer of Of the three major economic questions, which...

Quiz 1: Getting Started

Scarcity means that

When you make the decision to spend your time attending class, which economic question are you answering?

Scarcity forces people to

Scarcity exists because

Scarcity

What is the reason that all economic issues and problems occur?

Because human wants are insatiable and unlimited while available resources are limited, people are said to face the problem of

Which of the following best defines economics?

Economics is defined as the social science that studies

When a home builder decides to computerize all of its production schedule, it directly answers the ________ question.

Which of the following statements best describes the study of economics? Economics studies how

Economics is the social science that studies

Scarcity requires that we

The question of "What goods and services get produced? " most closely relates to which of the following issues?

The study of economics is best described as a study of

Which of the following statements best describes the study of economics? Economics studies how

Scarcity means we must

When Delta decides to quit flying to Lithuania, it directly answers the ________ question.

When Ford decides to increase production of hybrid cars, it directly answers the ________ question.

Of the three major economic questions, which of the following is the best example of a "What? " question?