Unit 1 Foundations of Economics

The major issue with economics around the world is which of the following concepts?

• disease

• scarcity

• transportation

• corrupt governments

What type of incentive would this picture represent?

• positive

• habitual

• police

• negative

What is the difference between "Macroeconomics" and "Microeconomics?"

• Macroeconomics deals with how we individually spend money and improve the economy in the United States.

• Microeconomics is the study of economics and trade on a global scale and how this impacts the United States.

• Macroeconomics studies global monetary issues like international trade and its impact on the United States.

• Microeconomics deals with how nations spend money, collect debt, and trade goods with other countries around the world..

Which of the following best describes the study of economics?

• It is the study of various aspects or branches of the study of human society, considered as an educational discipline.

• It is the is the study of past and future events that helped shape the world and America.

• It is the study of how people try to satisfy seemingly unlimited and competing wants through use of scarce resources.

• It is the scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Manufactured goods needed to produce other goods and services are called which of the following?

• capital goods

• non-durable goods

• Gross Domestic Products

• consumer goods

Which of the following is the best characteristic of division of labor?

• assembly line production

• entrepreneurship

• a home craft business

• classroom education

An incentive is best described as which of the following?

• the opposite of a tradeoff

• it could be a reward but could not be a penalty

• it could be either a reward or a penalty

• it could be a penalty but could not be a reward

The most fundamental economic problem is which of the following?

• security

• the fact the United States buys more goods from foreigners than we sell to foreigners

• health

• scarcity

Economics is best defined as the study of how people, businesses, governments, and societies that do which of the following?

• make choices to cope with scarcity

• attain wealth

• choose abundance over scarcity

• use their infinite resources

Human capital is best seen in which of the following?

• machinery that meets or exceeds federal safety standards for use by humans

• all capital owned by individuals or corporations, but not by governments

• the skills and knowledge of workers

• all capital owned by individuals, but not by corporations or governments