Economics Exam 1

Which of the following helps determine somethings value?

• utility

• scarcity

• neither

• both A and B

Scarcity is

• limited wants and unlimited resources

• limited wants and limited resources

• unlimited wants and limited resources

• unlimited wants and unlimited resources

Which branch of economics studies the economic decisions of businesses and individuals?

• microeconomics

• macroeconomics

• global economics

• general economics

Which branch studies the economy as a whole?

• microeconomics

• macroeconomics

• global economics

• basic economics

Computers used to produce magazine articles are examples of

• Land

• Labor

• Capital

• Entrepreneurs

The developer of a new smart-phone app is an example of which type of resource?

• Land

• Labor

• Capital

• Entrepreneur

Oranges used to make orange juice are an example of which type of resource?

• Land

• Labor

• Capital

• Entrepreneur

I want some eggs but I don't have a chicken, I have a cow. The chicken owner wants milk. We decide to exchange my milk for her eggs. What type of economy is this?

• command

• market

• mixed

• traditional

Which of these is a major advantage of a market economy?

• It can change direction rapidly

• there is a high degree of individual freedom

• there is efficient government control of production and distribution

• people are likely to be offered goods and services that they cannot afford

This economic system includes free enterprise with some government controls.

• Command

• Market

• Mixed

• Traditional