EC - 901 Pretest

The study of how to meet unlimited wants with limited resources is

• management

• marketing

• distribution

• economics

Economics involves decision-making because most individuals must determine

• what occupation appeals to them

• the cost of their noneconomic wants

• which capital goods to buy for their use

• how to get the most with the least

Limited resources are those that are

• easily replaced

• scarce

• abundant

• unnecessary

The desire for an item that has monetary value is a(n) __________ want.

• economic

• noneconomic

• intangible

• unlimited

The gap between unlimited desires for products and limited resources is known as

• scarcity

• conservation

• unemployment

• abundance

Which of the following is an economic activity:

• Balancing a checkbook

• Following the stock market

• Reading a bank statement

• Purchasing a candy bar

Making the best use of limited economic resources is called

• stabilizing

• economizing

• growth

• scarcity

When a choice is made about the best use of resources, the next-best alternative that is given up is called the __________ of that choice.

• trade-off

• opportunity cost

• scarcity

• economics

Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of the decision?

• Birthday check

• Concert tickets

• DVD player

• $50

Which of the following factors has an influence on the monetary value of resources:

• Productivity

• Prosperity

• Opportunity

• Diversity