.
Economics is BEST defined as the study of how:
people
make
rational
decisions.
to classify
resources
used to
produce
final goods
and
services.
resources
are
apportioned
to satisfy
human
wants.
technology
can be used
to change
scarce
resources
into free
resources.
Score: 4 of 4
2.
Scarcity is BEST defined as when:
the quantity supplied exceeds quantity demanded.
unlimited resources exceed limited wants.
the quantity demanded exceeds quantity supplied.
unlimited wants exceed limited resources.
Score: 0 of 4
3.
Why is it important for students to study economics?
It helps us reduce our personal income taxes.
Most students will work as professional economists.
There is no long-term benefit to studying economics.
It helps us make better and wiser decisions, given our limited resources.
Score: 4 of 4
4.
Macroeconomics focuses on:
the decision to purchase a new home for a family.
decisions made by firms.
decisions for the entire economy.
decisions made by individuals.
Score: 4 of 4
5.
Allocative efficiency occurs when:
people who wants a product the most gets it.
resources are equally allocated between the private and public sectors of the
economy.
production is allocated equally among all citizens.
goods are produced at the lowest possible cost.
Score: 4 of 4
6.
The “what” question primarily refers to:
who gets what.
whether the goods are produced under a communist system or a democratic
system.
the set of goods and services that are produced.
production efficiency.
Score: 4 of 4
7.
A market economy is also known as a _____ economy, and decisions are made by _____.
socialist; private individuals
socialist; the government
capitalist; private individuals
capitalist; the government
Score: 4 of 4
8.
Human capital is:
the equipment that companies use in the production process.
the improvement to labor capabilities from training, education, and apprenticeship
programs.
included in entrepreneurial ability.
