ECONOMICS WAY OF THINKING

What is the nature of human wants according to the text?

• Limited and uniform

• Unlimited and different

• Limited and different

• Unlimited and uniform

What are the natural resources provided by God in this world referred to as?

• Capital

• Labor

• Land

• Entrepreneurship

Which type of resource includes man-made tools and equipment that expedite the process of production?

• Labor

• Capital

• Entrepreneurship

• Land

What causes producers to make choices between competing alternatives?

• Abundance of resources

• Scarcity of resources

• Government regulations

• Technological advancements

What do distribution choices determine?

• The price of goods

• Who receives the fruits of the economic tree

• The quality of products

• The speed of production

What is an example of a firm making a decision to maximize profit?

• Family choosing the best product for their own consumption

• Firm choosing the best output to get maximum profit

• Government choosing the best infrastructure for the maximum benefit of the citizen

• None of the above

Which choice represents a government decision for the benefit of citizens?

• Family choosing the best product for their own consumption

• Firm choosing the best output to get maximum profit

• Government choosing the best infrastructure for the maximum benefit of the citizen

• None of the above

What is marginal analysis?

• A process of making decisions by comparing additional benefits and costs

• A method of calculating total costs

• A way to increase production efficiency

• A strategy for reducing expenses

What is marginal analysis?

• The process of examining the effect of addition to or subtraction from a current situation.

• The study of historical economic trends.

• The analysis of consumer behavior over time.

• The evaluation of market competition.

What is the opportunity cost in Amir's decision to buy a car?

• The cost of the X50

• The benefits of the X70

• The price difference between X50 and X70

• The maintenance cost of X50