ECO1_U1

Economics is the study of how humans make decisions in the face of _______.

• abundance

• scarcity

• consumption

• prosperity

Human _______ for goods, services, and resources exceed what is available.

• production

• specialization

• wants

• decisions

The ultimate scarce resource is _______ because everyone has only 24 hours in a day.

• time

• money

• labor

• land

Resources such as labor, tools, and raw materials are _______ in supply.

• limited

• infinite

• renewable

• unnecessary

A _______ determines how a nation allocates its financial resources.

• decision

• budget

• labor force

• policy

The division and _______ of labor increases production efficiency.

• consumption

• specialization

• scarcity

• allocation

Every society must make _______ about how to use its resources.

• tools

• efficiency

• choices

• production

The _______ of resources like land and labor determines what a society can produce.

• scarcity

• supply

• consumption

• abundance

In economics, _______ refers to the fact that human wants are unlimited, but resources are finite.

• division

• specialization

• scarcity

• consumption

Adam Smith discussed the division of labor in his famous book, _______.

• The Theory of Efficiency

• The Wealth of Nations

• Principles of Economics

• Scarcity and Resources