CHAPTER 01 16ce
1) The economic concept that serves as the basis for the study of economics is:
A) inflation.
B) unemployment.
C) money.
D) scarcity.
2) As a consequence of the condition of scarcity:
A) there is always enough of everything.
B) production has to be centrally planned.
C) things which are plentiful have relatively high prices.
D) individuals and communities have to make choices among alternatives.
3) In every economic system, choices must be made because resources are:
A) infinite, but economic wants are finite.
B) finite, but economic wants are insatiable.
C) unlimited, but economic wants are limited.
D) limited, and so are economic wants.
4) Opportunity cost is best defined as:
A) marginal cost minus marginal benefit.
B) the time spent on an economic activity.
C) the value of the best foregone alternative.
D) the money cost of an economic decision.
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1) The economic concept that serves as the basis for the study of economics is:
A) inflation.
B) unemployment.
C) money.
D) scarcity.
2) As a consequence of the condition of scarcity:
A) there is always enough of everything.
B) production has to be centrally planned.
C) things which are plentiful have relatively high prices.
D) individuals and communities have to make choices among alternatives.
3) In every economic system, choices must be made because resources are:
A) infinite, but economic wants are finite.
B) finite, but economic wants are insatiable.
C) unlimited, but economic wants are limited.
D) limited, and so are economic wants.
4) Opportunity cost is best defined as:
A) marginal cost minus marginal benefit.
B) the time spent on an economic activity.
C) the value of the best foregone alternative.
D) the money cost of an economic decision.
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