Tutorial : Introduction to Economics

Scarcity is a problem ___________Scarcity is a problem ___________

• measured by the amount of goods available.

• of the poor, but not the rich.

• because human wants are unlimited while resources are limited.

• only in industrialized economies.

Human wants ___________

• are unfilled only in the poorer countries of the world

• can be completely satisfied by advancing technology.

• can never be fully satisfied.

• only apply to necessities.

People are forced to make choices because of _____________

• unlimited wants and unlimited resources.

• limited wants and unlimited resources.

• unlimited wants and limited resources.

• limited wants and limited resources.

Which of the following is not an example of a factor of production?

• A forest.

• A computer program.

• A labor leader.

• Dollars.

The sun is an example of ____________

• a natural resource.

• capital.

• labor.

• none of the above

An economics textbook is an example of __________

• capital.

• labor.

• a natural resource.

• entrepreneurship.

The creative ability of persons to combine and direct resources to produce new products is known as ___________

• economizing.

• entrepreneurship.

• value judgment.

• product sensitivity

Which one of the following is the most accurate definition of economics?

• Economics is the study of stocks and bonds.

• Economics is the study of how people allocate unlimited resources.

• Economics is the study of how consumers choose to spend their income.

• Economics is the study of how society chooses to allocate scarce resources.

The most fundamental concepts underlying the discipline of economics are ___________

• scarcity and choice.

• supply and demand.

• money, stocks, and bonds.

• inflation and unemployment.

The study of microeconomics and macroeconomics differ in that _____________

• microeconomics is concerned with the domestic economy and macroeconomics is concerned only with the international economy.

• microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy.

• microeconomics studies the actions of households and macroeconomics studies the actions of business firms.

• microeconomics examines the whole economy while macroeconomics studies the individual units of the economy.