CENTRAL PROBLEM OF ECONOMICS

________ is the root of all economic problems.

• Alternatives

• Planning

• Wants

• Scarcity

The fundamental economic problem being faced is

• Unlimited human wants

• Limited want and unlimited resources

• Unlimited want and scarcity of resources

• Limited want and limited resources

_________ is a system which provides people, the means to work and earn a living.

• Economics

• Economy

• Demand

• Scarcity

Why does scarcity exist?

• Each year workers tend to produce less than previously 
• Machines wear out in time
• There are not sufficient resources to meet everyone's wants
• There is a limit to people's wants 

Why will scarcity continue to be a problem in the future?

• Prices will rise
• Resources will always be finite 
• Needs will decrease in the future 
• World population will fall 

Which of the following is a free good?

• A vaccination provided by the state without charge

• Prizes of food items given away by a supermarket

• Recycled paper

• Wind coming from the sea

What do you mean by Opportunity cost?

• Is the value of a factor in its next best alternative use.

• Is the value of factor in its previous alternative use

• Both A and B

Which of the following is NOT considered a main agent in an economy?

• Households

• Firms

• Government

• Weather

What role do households play in an economy?

• They produce goods and services

• They consume goods and services

• They regulate the economy

• They provide financial aid

Which agent is primarily responsible for the allocation of resources in an economy?

• Households

• Firms

• Government

• Financial institutions