Applied Economics Quiz 1

What best describes a want?

• An unnecessary object

• A commodity that fulfills a desire

• An expensive object

• A derived need

What do people respond to in predictable ways?

• Problems

• Incentives

• Solutions

• Choices

Which is NOT a major economic problem?

• When to produce?

• What to produce?

• How to produce?

• For whom to produce?

Economics is said to deal mostly with the ____________ of resources.

• Deprivation

• Allocation

• Usage

• Consumption

Countries and states utilize this to solve the problem of allocation.

• Culture and Norms

• Rules and Regulations

• Economic Systems

• Fiscal Policies

When economists say that resources are scarce, it means that they are what?

• Limited

• Lacking

• Overflowing

• Rare

According to the basic economic principles, what creates wealth?

• Voluntary Work

• Voluntary Trade

• Business Transactions

• Business Management

Aside from the actual monetary / resource cost, what other cost is incurred when decisions are made?

• Chance Expense

• Trade off

• Equivalent Exchange

• Opportunity Cost

Allocation and scarcity is a problem because people have unlimited ____________.

• problems

• wants and needs

• resources

• desires

They say that economics is the science of ____________.

• Money

• Country Growth

• Opportunities

• Decision Making