Economics Quiz

Scarcity exists because:

• Resources are unlimited and wants are limited.

• Resources are limited and wants are unlimited.

• People do not want enough goods and services.

• Governments control all available resources.

Which of the following is an example of a trade-off?

• Buying a new phone instead of saving for a laptop.

• Discovering new natural resources.

• Increasing the production of all goods at once.

• Finding a way to eliminate scarcity.

Opportunity cost refers to:

• The cost of making a wrong decision.

• The price paid for a good or service.

• The value of the next best alternative foregone.

• The total cost of production.

Scarcity forces individuals and societies to:

• Satisfy all their wants immediately.

• Make choices about how to allocate resources.

• Stop producing certain goods.

• Increase the supply of resources indefinitely.

A country decides to spend more on healthcare and less on military defense. This decision is an example of:

• Opportunity cost.

• Scarcity.

• A trade-off.

• Unlimited resources.

Economics is considered a social science because it:

• Uses scientific methods to study human behavior and decision-making.

• Focuses only on money and business.

• Does not rely on theories and models.

• Studies only historical economic events.

Which of the following best describes economics as an applied science?

• It analyzes economic theories without practical application.

• It only deals with abstract ideas and concepts.

• It applies economic principles to solve real-world problems.

• It focuses only on past economic activities.

As a social science, economics primarily studies:

• The behavior of individuals and societies in making choices.

• The structure of the universe.

• The chemical composition of money.

• The laws of physics applied to business.

Which of the following statements is TRUE about economics as both a social and applied science?

• Economics is purely theoretical and has no real-world applications.

• Economics only studies natural resources and their distribution.

• Economics helps explain and predict economic behavior while also solving practical issues.

• Economics does not involve human decision-making.

Why is economics considered an applied science?

• It involves laboratory experiments to test scientific laws.

• It applies economic theories and principles to solve real economic problems.

• It only deals with abstract mathematical models.

• It does not use any real-world data for analysis.