Economics 9 Quiz

Economics originates from the Greek word:

• Artha

• Commercium

• Oikonomia

• Iqta

Scarcity exists because:

• Human wants exceed limited resources

• Governments hoard resources

• People are wasteful

• Technology is underdeveloped

Relative scarcity occurs when:

• Resources are evenly distributed

• A resource is scarce relative to demand

• All resources are infinite

• Only poor countries experience shortages

Opportunity cost is:

• The purchase price of goods

• Government taxes

• Value of the next best alternative forgone

• Total production time

In Juan's case study, his opportunity cost for studying more was:

• Better grades

• Lost income from working less

• Social isolation

• Parental disapproval

"How to produce?" primarily concerns:

• Market selection

• Production methods (labor/capital-intensive)

• Pricing strategies

• Consumer preferences

Microeconomics studies:

• National unemployment rates

• Individual households and businesses

• Global trade policies

• International treaties

Keynesian economics emphasizes:

• Eliminating taxes

• Government spending to stabilize economy

• Privatizing industries

• Gold standards

A key solution to scarcity is:

• Reducing population

• Hoarding resources

• Wise resource allocation

• Eliminating wants

The basic economic question NOT asked is:

• What to produce?

• How to produce?

• When to produce?

• For whom to produce?