Woolf Economic Chapter 1

Which two basic economic principles create the need for choices?

• Which two basic economic principles create the need for choices?

• Unlimited wants and limited resources

• Subjective value and utility

• Utility and opportunity

Conservation of natural resources primarily shows which economic concept?

• Microeconomics

• Utility

• Public Goods

• Scarcity

Explain the Nature of the Economic problem

• When there is too much money in a country and the value of money goes down

• When the poverty levels in a country reduce tourism, resulting in higher taxes

• When a country is in too much debt

• It is when unlimited wants exceeds limited resources which leads to the problem of choice which results in opportunity cost. There are 3 questions which every society has to answer

  What to produce? ,how to produce? For whom to produce?

What biblical concept refers to a person's responsibility to make proper choices with his resources?

• Stewardship

• Contentment

• Utility

• Public good

What is the economic cost of a good or service?

• The price charged for it

• The regret a consumer feels after choosing it

• The value people place on it

• The cost of making and marketing it

Which of the following is an economic service rather than an economic good?

• Computer monitor

• Sports Car

• Haircut

• Cell Phone

What principle does the broken windows story illustrate?

• Scarcity

• Hidden costs

• Stewardship

• Cost of labor

What approach to economic study focuses on value judgments?

• Microeconomics

• Positive economics

• Macroeconomics

• Normative economics

What is the major difference between scarcity and a shortage? 

• They are really the same
• Shortages always exist and scarcity is temporary 
• Shortages are temporary and scarcity always exist. 
• Scarcity is limited and shortages are unlimited 

What will probably happen if something people want to buy is scarce?

• The price will go up.
• The price will go down.
• You will be able to get it for free.