Quiz Chapter 1 Part 1

The study of economics exists because:

• government interferes with the efficient allocation of scarce resources

• resources are scarce in relation to human material wants

• the market system is an obstacle to the efficient use of plentiful resources to satisfy constrained wants

• resource are overly abundantly as compared to wants, hence an allocation problem exits

Economics can be defined as the social science that explains the ________.

• choices that we make as we cope with scarcity

• choices made by households

• choices made by politicians

• choices we make when we trade

The physical and mental effort used to produce goods and services.

• Labor

• Capital

• Land

• Scarcity

A profit-seeker who develops new product or process and assumes the risk of profit or loss.

• Profiteer

• Entrepreneur

• Salesman

• Venture Capitalist

A simplification of economic reality used to make predictions about the real world.

• Economic model

• Economic Assumption

• Economics

• Economic Choice

Man made tools used to produce goods and services; for example, factories, trucks, and machines.

• Labor

• Entrepreneurship

• Capital

• Human Resource

Microeconomics is a division of economics that deals with

• Monetary supply of an economy

• The aggregate demand

•   The purchasing behaviour of consumers

• The inflation and unemployment

Choice is needed because of:

• scarcity

• factors of production

• opportunity cost

•        entrepreneurs

Malaysia is arguing about whether we should increase the amount of BSH next year. This is closely related to the economic concept of

• scarcity

• choice

• opportunity cost

• utility

Microeconomics is a division of economics that deals with

• Monetary supply of an economy

• The aggregate demand

•   The purchasing behaviour of consumers

• The inflation and unemployment