What Is Economics

Which definition fits this picture.

• The science of choice, exploring the choices made by individuals and organizations

• The study of how many human beings coordinate their wants and desires, given the decision-making mechanism, social customs, and political realities of the society.

• The study of choices when there is scarcity

• The study of how to get people to do things they are not wild about and not to do things they are wild about.

• All of them

The study of how people seek to satisfy their wants and needs by making choices.

• Scarcity

• Economics

• Shortage

• Entrepreneur

This combination of limited resources & unlimited wants results in a condition known as_________

Economics is often defined as the study of how people use _______ resources to satisfy _______ wants.

• limited, unlimited

• unlimited, limited

• limited, limited

• unlimited, unlimited

Which of the following is a primary focus of macroeconomics?

• Individual consumer behavior

• The study of firms

• National unemployment rates

• The pricing of individual goods

Who is known as the father of modern economics?

• Karl Marx

• John Maynard Keynes

• Adam Smith

• Milton Friedman

The concept of 'opportunity cost' is best described as:

• The cost of an alternative that must be forgone to pursue a certain action

• The total cost of producing a good

• The cost of labor in production

• The cost of raw materials

Which economic system is characterized by private ownership and free markets?

• Socialism

• Communism

• Capitalism

• Feudalism

The 'invisible hand' is a metaphor introduced by which economist?

• David Ricardo

• Adam Smith

• John Stuart Mill

• Thomas Malthus

What is the main purpose of a production possibilities curve?

• To show the maximum possible output combinations of two goods

• To determine the cost of production

• To analyze consumer preferences

• To calculate the profit of a firm