Econ 1.2 Quiz

Scarcity requires people to make decisions about how to use resources effectively.

• True
• False

The three questions all economic systems must address are: what to produce, how to produce, and for whom to produce.

• True
• False

Producers study productivity to decide how to ...

• distribute the goods and services they produce.
• make sure that resources are used as effectively as possible
• decrease demand

Efficiency is ...

• the level of output that results from a given level of input.
• the use of the largest amount of resources to produce the lowest amount of output.
• the use of the smallest amount of resources to produce the greatest amount of output.

A factory might improve efficiency by introducing a division of labor

• True
• False

The condition that results from the combination of limited resources and unlimited wants

• scarcity
• allocate
• efficiency
• division of labor
• specialization

Focusing on a particular activity

• scarcity
• allocate
• efficiency
• division of labor
• specialization

To distribute resources in order to satisfy the greatest number of needs and wants

• scarcity
• allocate
• efficiency
• division of labor
• specialization

The use of the smallest amount of resources to produce the greatest amount of output

• scarcity
• allocate
• efficiency
• division of labor
• specialization

Assigning a small number of tasks to each worker

• scarcity
• allocate
• efficiency
• division of labor
• specialization