Unit 2: Quiz 2 "Prcatice Questions"

Complete the sentence:

The distribution of a good or service is called _____.

• scarcity

• allocation

• economics

• none of the above

Complete the sentence:

When there are unlimited wants and needs with limited resources, _____ occurs.

• scarcity

• allocation

• economics

• none of the above

Complete the sentence:

Every economy has _____ that are used to produce the goods and services that people want and need.

• limited resources

• unlimited wants and needs

• unlimited resources

• none of the above

Complete the sentence:

Once a problem of scarcity has been identified, the _____ of how these limited resources will be used needs to be decided.

• economics

• allocation

• plan

• scarcity

_____ is one way to measure the size of a country's economy.

• Allocation

• GDP

• GPD

• Scarcity

The correct formula to measure the GDP is _____.

• GDP = C - G - I + (X-M)

• GDP = C + G + I + (X-M)

• GDP = C + G + I - (X-M)

• GDP = C - G - I - (X-M)

An example of consumer spending when calculating the GDP using the expenditures approach is _____.

• food

• salaries of public employees

• construction of a new mine

• none of the above

An example of government spending when calculating the GDP using the expenditures approach is _____.

• food

• salaries of public employees

• construction of a new mine

• none of the above

An example of a country's businesses spending on capital when calculating the GDP using the expenditures approach is ____

• food

• salaries of public employees

• construction of a new mine

• none of the above

Select ALL the correct options:

When calculating the GDP using the expenditures approach, _____ are part of the calculation.

• net imports

• gross exports

• gorss imports

• net exports