Unit 1: 7 Principles Quiz

What is Economics the study of?

• The study of financial markets

• The study of the use of scarce resources that have alternative uses

• The study of production of goods

• The study of government policies

What are the two key components of definition in Economics?

• Demand and supply

• Scarcity and wealth

• Scarcity and alternative uses

• Scarcity and resource allocation

What does the term 'Resource' refer to in Economics?

• Any service provided by the government

• Anything used to produce an economic good or service

• A type of financial asset

• A skilled labor force

Why must decisions be made relating to the use of scarce resources?

• Because there is an overabundance of resources

• Because resources do not have alternative uses

• Because of scarcity, which forces choices about how resources are used

• Because resources are unlimited

What does Microeconomics focus on?

• The behavior of entire economic systems

• The decision making by individuals, households, and businesses

• International trade and finance

• Government fiscal and monetary policy

What is the main focus of Macroeconomics?

• The analysis of small economic units like a single consumer

• The study of individual markets and industries

• The workings of an economy as a whole

• The decision making process within a single business entity

What does scarcity refer to in economic terms?

• The abundance of resources for everything we want to do

• Not enough resources to do everything we would want to do

• The equal distribution of resources

• The overuse of resources leading to depletion

What is a tradeoff?

• When you use a resource for something and can still use it for other things

• When you choose one thing over another due to unlimited resources

• When you choose one thing over another, indicating a decision-making process

• When you are forced to use a resource for something you don't want to

What happens when resources have alternative uses?

• It leads to a decrease in the value of the resources

• It causes an increase in resource availability

• It has no impact on how resources are used

• It forces individuals to make choices about how to use the resources

What does the acronym TANSTAAFL stand for?

• There Are Numerous Strategies To Acquire A Free Lunch

• There Ain't No Such Thing As A Free Lunch

• There Are No Simple Tactics For Acquiring Liberty

• There's Always New Stuff To Add For Leisure