What is Economics?

Our inability to satisfy all our wants is called __________, and it leads us to make __________.

• choices, scarcity

• incentives, choices

• scarcity, choices

• choices, incentives

Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices.

• True

• False

Macroeconomics is the study of choices that individuals and businesses make, the way those choices interact in markets, and the influence of governments.

• True

• False

The inflation rate in Malaysia increased by 1.5% between Q1 and Q2 of 2022. The statement is a __________ statement.

• Microeconomics

• Macroeconomics

• Economics

• Top-down

Economic output refers to the _________.

• goods produced in the economy

• services produced in the economy

• goods and services produced in the economy

• economic sectors

Goods and services are produced by using __________ that economists call __________.

• factors of production, productive resources

• productive resources, factors of production

Which of the following is the correct combination of factors of production?

• land, human capital, physical capital, entrepreneurship

• land, labour, physical capital, entrepreneurship

• land, labour, capital, entrepreneurship

• gifts of nature, human capital, physical capital, entrepreneurship

The factor that organizes other factors of production is __________

• land

• labour

• capital

• entrepreneurship

The two dimensions of social interest are

• productivity and equity

• equity and effectiveness

• efficiency and equity

• productivity and efficiency

Objective and fact-based statements are classified as __________ statements.

• negative

• normative

• positive

• subjective