Economics

What causes economic agents to make choices?

• limited needs and wants

• the existence of finite resources

• the existence of free goods

• the market mechanism

What is the basic economic problem?

• excess supply of goods and services

• lack of profits

• recession

• scarcity of resources

What is the cause of the economic problem facing all countries?

• climate change and global warming

• significant quantities of unemployed resources

• unlimited wants in relation to limited resources

• uneven distribution ofincome and wealth

What is the basic problem facing all economies?

• how to achieve a stable balance of payments

• how to maximise tax revenues

• how to reach full employment

• how to use scarce resources

What is the basic economic problem?

• The scarcity of resources relative to human wants

• The unlimited supply of resources to fulfill human needs

• The efficient allocation of resources by the government

• The equal distribution of wealth among all individuals

Which of the following is not a consequence ofthe basic economic problem of scarcity?

• The need for individuals and societies to make choices and trade-offs

• The potential for economic growth and technological advancements

• The emergence of opportunity cost in decision making

• The ability to satisfy all human wants and needs without constraints

Why does the basic economic problem of scarcity persist even in prosperous societies?

• These societies have an overabundance of resources to meet all human wants

• People in prosperous societies tend to have fewer material desires

• Technological advancements have eliminated resource limitations

• The unlimited nature of human wants outstrips available resources

What is the relationship between scarcity and competition in the marketplace?

• Scarcity reduces competition, leading to lower prices

• Scarcity intensifies competition, driving up prices

• Scarcity and competition are unrelated concepts in economics

• Scarcity and competition both resultfrom excessive consumer demand

Which of the following economic systems is most directly affected by the basic economic problem of scarcity?

• Market economy

• Traditional economy

• Command economy

• Mixed economy

Which of the following best explains how the basic economic problem of scarcity influences the production of goods and

services?

• Scarcity encourages businesses to produce only luxury goods to maximize profits

• Scarcity necessitates the efficient allocation of resources to meet diverse consumer needs

• Scarcity reduces the need for specialized labor as fewer goods can be produced

• Scarcity ensures that businesses produce goods only forthe wealthiest segment of society