Economics Semester Test

What is the fundamental problem of every society?

• labor costs
• scarcity
• economic interdependence
• market fluctuation

   Scarcity can best be defined as 

• A Shortage of a product
• Where demand is greater than supply
• Unlimited wants vs Limited resources 
• Limited wants vs unlimited resources 

Using resources more efficiently increases

• productivity
• capital
• income
• investment

Which of the following resources would economists classify as a “capital good”?

• Raw Bauxite in a South African mine

• A hammer used in framing a house

• A worker hired to repair engines

• Trees used to make paper

Food is an example of a

• durable good
• non-durable good
• want
• resource

A nation whose total output increases is experiencing

• decreased GDP
• expansion of the possibilities curve
• more consumerism
• economic growth

A person's quality of life is most determined by

• marriage
• food
• standard of living
• love

Reliance on others to produce goods and services is

• consumerism
• scarcity
• economic interdependence
• wealth

A diamond is worth more than water. This illustrates what concept of economics?

• consumerism
• paradox of value
• specialization
• human capital

The law of demand states that

• consumers demand a larger quantity of a good when price is low.
• consumer demand increases when price is low.
• sellers supply a larger quantity of a good when price is high.
• sellers increase supply when price is high.