ECO EXAM

Which of the following best defines economics?

• The study of natural resources and environmental protection

• The study of human behavior and relationship

• The study of how to society use scarce resources to satisfy unlimited wants

• The study on how to make people rich

What is an economic good?

• Anything is available and free to everyone

• A good that is abundant and does not command a price

• A commodity or services that yields utility and a can command the price

• A product that a harmful to society

What do scarcity and unlimited wants create in an economy?

• A balance between supply and demand

• The need for making choice

• The abundance of resources

• Economic prosperity of all

What is definition of scarcity?

• The availability of unlimited resources

• The imbalance between desire and the means to satisfy them

• The over production of goods

• The abundance of economic resources

Which of the following refers the opportunity cost?

• The monitary price of a product

• The lost alternative when making a decision

• The income gained from a new activity

• The actual financial cost of production

What are the two basic activities undertaken in an economy

• Production and Taxation

• Consumption and Regulation

• Production and Consumption

• Savings and Investments

Who performs the production of function in an economy?

• Households

• Firms

• Government

• Banks

What are the three economic resources necessary for production?

• Labor, capital, and government

• Land, labor, and capital

• Land, capital, and goods

• Goods, services, and labor

Who owns the economic resources of land, labor, and capital?

• Firms

• Government

• Banks

• Households

What is paid to the owner of land in exchange for its use in production?

• Wages

• Interest

• Rent

• Profit