Unit 1 Quiz 1

What is scarcity?

• The abundance of resources

• The limited nature of society's resources

• The unlimited wants of individuals

• The surplus of goods and services

Why must individuals, businesses, and governments make choices?

• Because resources are unlimited

• Because they want to avoid making decisions

• Because resources are scarce

• Because they have too many options

What is the difference between microeconomics and macroeconomics?

• Microeconomics studies individual markets, while macroeconomics studies the economy as a whole

• Microeconomics studies the global economy, while macroeconomics studies local markets

• Microeconomics focuses on government policies, while macroeconomics focuses on business strategies

• Microeconomics deals with economic history, while macroeconomics deals with future predictions

What is the difference between positive and normative statements?

• Positive statements are based on opinions, while normative statements are based on facts

• Positive statements are based on facts, while normative statements are based on opinions

• Positive statements are always true, while normative statements are always false

• Positive statements are about the future, while normative statements are about the past

What are the four factors of production?

• Land, labor, capital, and entrepreneurship

• Money, time, effort, and resources

• Goods, services, markets, and prices

• Supply, demand, equilibrium, and surplus

Why are entrepreneurs willing to take risks?

• Because they want to avoid working for others

• Because they are guaranteed success

• Because they seek potential rewards and profits

• Because they have no other options

What is the science of scarcity?

• Biology

• Chemistry

• Economics

• Physics

What does scarcity mean?

• Unlimited resources and limited wants

• Limited resources and unlimited wants

• Limited resources and limited wants

• Unlimited resources and unlimited wants

In economics, whose choices are studied?

• Only individuals

• Only firms

• Only governments

• Individuals, firms, and governments

Which of the following is an example of a topic studied in macroeconomics?

• Production costs

• Labor markets

• Supply and demand in specific industries

• Inflation