General Economics

The word economy comes from the Greek word for

• a. “environment.”

• b. “one who manages a household.”

• c. “one who participates in a market.”

• d. “conservation.”

Households and economies have each of the following in common EXCEPT both

• a. must allocate scarce resources.

• b. face many decisions.

• c. must allocate the goods and services they produce.

• d. must have a central decision-maker.

Economics deals primarily with the concept of

• a. scarcity.

• b. poverty.

• c. change.

• d. power

Which of the following is NOT included in the decisions that every society must make?

• a. what goods will be produced

• b. who will produce goods

• c. what determines consumer preferences

• d. who will consume the goods

Both households and societies face many decisions because

• a. resources are scarce.

• b. populations may increase or decrease over time.

• c. wages for households and therefore society 8uctuate with business cycles.

• d. people, by nature, tend to disagree.