Basic Economic Problems Quiz

What is the basic economic problem faced by all societies?

• achieving happiness

• an inefficient economic system

• rewarding factors of production

• scarcity of resources

Which product is most likely to be classified as a free good?

• birthday presents

• public transportation

• seawater

• state (government-funded) education

What makes choice an important element in the basic economic problem?

• Increased demand leads to higher market prices.

• Limited resources have many alternative uses.

• Reaching a market equilibrium may take a long time.

• Scarce economic resources are distributed equally.

What is meant by the economic problem?

• how to achieve efficiency with the existence of fixed resources and limited wants

• how to allocate resources between public and private sectors

• how to balance unlimited wants against finite resources

• how to decide which methods to use to exploit all resources

Although people may satisfy their basic needs there is always something more they want. To what economic issue does this statement refer?

• exchange

• market forces

• scarcity

• income distribution

A hospital cannot treat all the people that need treatment. This is an example of

• excess supply.

• limited wants.

• scarcity.

• unlimited resources.

Which economic change would increase the problem of scarcity?

• a decrease in fish stocks

• a discovery of a new oil field

• an increase in labour productivity

• a reduction in waste