Principles of Economics

Scarcity is a problem:

• that only poor people face.

• because human wants are limited while resources are unlimited.

• because human wants are unlimited while resources are limited.

• only in third world countries.

Scarcity is a situation:

• where people’s needs exceed their resources.

• where people’s wants exceed their resources.

• where the quantity of resources is sufficient to meet all wants

• where people’s needs exceed other people’s resources.

• where the quantity of resources is sufficient to meet all needs.

Which of the following would eliminate scarcity as an economic problem?

• Moderation of people’s competitive instincts.

• Discovery of sufficiently large new energy reserves

• Resumption of steady productivity growth.

• Economic scarcity cannot be eliminated as long as the resources are limited.

Labour, land and capital are called:

• goods and services.

• entrepreneurship.

• outputs.

• factors of production.

Which of the following is not a resource?

• Land.

• Labour.

• Money.

• Capital.

The three basic categories of resources are land, labour and:

• money.

• time.

• energy.

• capital.

The central question in economics is how to:

• deal with the problem of scarcity.

• change government economic policy.

• change people’s wants to match their needs.

• manage money and become wealthy.

The most fundamental concepts underlying the discipline of economics are:

• scarcity and making an efficient choice.

• supply and demand.

• money, stocks and bonds.

• inflation and unemployment.

Which of the following is a microeconomics topic?

• The unemployment rate.

• The inflation rate.

• The economy’s growth rate.

• The price of apples.

• Forecasts of a recession next year.

Which of the following is included in the study of macroeconomics?

• How households make a purchasing decision.

• Market for laptops.

• Flows of imports and exports.

• Prices of cars.