Econ 2301 Exam 1

Economics is most importantly concerned with

• studying how we allocate scarce resources to satisfy unlimited wants

• human decision makers and the factors that influence their choices

Economics is concerned with:

• A. the choices people must make because resources are scarce.

• B. human decision makers and the factors that influence their choices.

• C. the allocation of limited resources to satisfy virtually unlimited desires

• D. all of the answers are correct.

Economic resources are also known as:

• factors of production

• scarcity

Which of the following is not an example of a resource?

• a.) a forest

• b.) a river

• c.) a John Deere tractor

• d.) the chef at the city's best café

• e.) all of the answers are resources

Human capital is:

• the expertise or knowledge possessed by workers.

• a bond issued by a company selling electric generators.

An example of a capital resource is:

• A. stock in a computer software company.

• B. the funds in a CD account at a bank.

• C. a bond issued by a company selling electric generators.

• D. a dump truck.

• E. an employee of a moving company.

Entrepreneurship is:

• respond in predictable ways to changing circumstances.

• the resource that organizes the other factors of production in order to produce goods and/or services.

Which of the following is an example of an individual motivated be self-interest?

• A. a student volunteering at a soup kitchen

• B. an attorney providing free legal service to low income families

• C. a young person volunteering for the Peace Corps

• D. a man buying a new Camaro

• E. all of the answers

Economists believe that individuals act as if they are motivated by self-interest and:

• rational people try to anticipate the likely consequences of their actions.

• respond in predictable ways to changing circumstances.

• Self-interest is purely monetary in nature.

What according to an economist, forms the basis of rational human behavior under current and anticipated future circumstances?

• Values and information

• mechanisms that coordinate actions of buyers and sellers.

• rational people try to anticipate the likely consequences of their actions.