Business: Economics and Resources
Chapter 1 What Is Economics?
1) All economic questions are about
A) how to make money.
B) what to produce.
C) how to cope with scarcity.
D) how to satisfy all our wants.
2) An incentive
A) could be a reward but could not be a penalty.
B) could be a penalty but could not be a reward.
C) could be either a reward or a penalty.
D) is the opposite of a tradeoff.
3) An inducement to take a particular action is called
A) the marginal benefit.
B) the marginal cost.
C) opportunity cost.
D) an incentive.
4) All economic questions arise because we
A) want more than we can get.
B) want more than we need.
C) have an abundance of resources.
D) have limited wants that need to be satisfied.
5) The most fundamental economic problem is
A) security.
B) scarcity.
C) health.
D) the fact the United States buys more goods from foreigners than we sell to foreigners.
6) Economics is best defined as the study of how people, businesses, governments, and societies
A) choose abundance over scarcity.
B) make choices to cope with scarcity.
C) use their infinite resources.
D) attain wealth.
7) Scarcity is a situation in which
A) people cannot satisfy all their wants.
B) most people can get only bare necessities.
C) people can satisfy all their wants.
D) some people can get all they want and some cannot.
8) Scarcity arises from
A) inefficient production.
B) exploration.
C) limited resources and limitless wants.
D) limited wants and limitless resources.
9) Scarcity can be eliminated through
A) the use of market mechanisms.
B) exploration that helps us find new resources.
C) wise use of our resources.
D) None of the above because scarcity cannot be eliminated.
10) As an economic concept, scarcity applies to
A) both money and time.
B) money but not time.
C) time but not money.
D) neither time nor money.
11) Economics is best defined as
A) how people make money and profits in the stock market.
B) making choices from an
1) All economic questions are about
A) how to make money.
B) what to produce.
C) how to cope with scarcity.
D) how to satisfy all our wants.
2) An incentive
A) could be a reward but could not be a penalty.
B) could be a penalty but could not be a reward.
C) could be either a reward or a penalty.
D) is the opposite of a tradeoff.
3) An inducement to take a particular action is called
A) the marginal benefit.
B) the marginal cost.
C) opportunity cost.
D) an incentive.
4) All economic questions arise because we
A) want more than we can get.
B) want more than we need.
C) have an abundance of resources.
D) have limited wants that need to be satisfied.
5) The most fundamental economic problem is
A) security.
B) scarcity.
C) health.
D) the fact the United States buys more goods from foreigners than we sell to foreigners.
6) Economics is best defined as the study of how people, businesses, governments, and societies
A) choose abundance over scarcity.
B) make choices to cope with scarcity.
C) use their infinite resources.
D) attain wealth.
7) Scarcity is a situation in which
A) people cannot satisfy all their wants.
B) most people can get only bare necessities.
C) people can satisfy all their wants.
D) some people can get all they want and some cannot.
8) Scarcity arises from
A) inefficient production.
B) exploration.
C) limited resources and limitless wants.
D) limited wants and limitless resources.
9) Scarcity can be eliminated through
A) the use of market mechanisms.
B) exploration that helps us find new resources.
C) wise use of our resources.
D) None of the above because scarcity cannot be eliminated.
10) As an economic concept, scarcity applies to
A) both money and time.
B) money but not time.
C) time but not money.
D) neither time nor money.
11) Economics is best defined as
A) how people make money and profits in the stock market.
B) making choices from an