MANECO: PRELIM SUMMARY QUIZ

All economic questions are about

• how to make money.

• what to produce.

• how to cope with scarcity.

• how to satisfy all our wants.

All economic questions arise because we

• want more than we can get.

• want more than we need.

• have an abundance of resources.

• have limited wants that need to be satisfied.

Economics is best defined as the study of how people, businesses, governments, and societies

• choose abundance over scarcity.

• make choices to cope with scarcity.

• use their infinite resources.

• attain wealth.

Scarcity is a situation in which

• people cannot satisfy all their wants.

• most people can get only bare necessities.

• people can satisfy all their wants.

• some people can get all they want and some cannot.

Economists point out that scarcity confronts

• neither the poor nor the rich.

• the poor but not the rich.

• the rich but not the poor.

• both the poor and the rich.

Scarcity is

• our inability to satisfy all our wants.

• a situation that exists during economic recessions but not during economic booms.

• eliminated by choices.

• an economic problem only for poor people.

In every economic system, choices must be made because resources are ________ and our wants are ________.

• unlimited; limited

• limited; unlimited

• unlimited; unlimited

• limited; limited

The study of economics

• focuses mainly on individual consumers.

• arises from the fact that our wants exceed available resources.

• recognizes that scarcity does not affect rich nations.

• deals mainly with microeconomics.

Economics is the study of

• the distribution of surplus goods to those in need.

• affluence in a morally bankrupt world.

• the choices we make because of scarcity.

• ways to reduce wants to eliminate the problem of scarcity.

The study of the decisions of individual units in the economy is known as

• macroeconomics.

• microeconomics.

• the study of incentives.

• ceteris paribus study.