ECON 111 Exam 1 questions with
complete solutions
Economics is primarily the study of...
a.how people use scarce resources to produce goods and services.
b.how to operate a profitable business.
c.the allocation of non-scarce resources in society.
d.how households decide to spend after-tax income.
e.None of the above. - correct answer ✔✔a. how people use scarce resources to produce goods
& services
Economics is the study of how people cope with ____________.
a. scarcity.
b. greed.
c. unlimited resources.
d. limited human wants.
e. All of the above. - correct answer ✔✔a. Scarcity
The concept of scarcity as used by economists is _________.
a. a situation in which the available resources are not enough to satisfy the wants of the people.
b. a situation in which an item is very expensive.
c. a situation in which a resource is nonrenewable.
d. shortages.
e. a situation in which an item is available only in very small quantities. - correct answer ✔✔a. a
situation in which the available resources are not enough to satisfy the wants of the people
, A good scarce is when...
a. it is available in limited supply.
b. it is a luxury item.
c. people want more than the amount of the good that is freely available.
d. the amount of the good available exceeds the amount people want.
e. None of the above. - correct answer ✔✔c. people want more than the amount of the good
that is freely available
The problem of scarcity...
a. is not faced by free market economies.
b. is a problem only for poor countries.
c. is a problem only for economies under complete government control.
d. is faced by all economies.
e. is eliminated as the economy grows. - correct answer ✔✔d. is faced by all economies
A resource is not scarce if...
a. its supply exceeds its demand.
b. it has a low opportunity cost.
c. it can be found in any store.
d. people have enough money to pay for it.
e. there is more of this resource than people want. - correct answer ✔✔e. there is more of this
resource than people want
An important implication of scarcity is...
a. people must make a choice.
b. it inhibits economic interaction.
c. it is a problem easily abolished.
complete solutions
Economics is primarily the study of...
a.how people use scarce resources to produce goods and services.
b.how to operate a profitable business.
c.the allocation of non-scarce resources in society.
d.how households decide to spend after-tax income.
e.None of the above. - correct answer ✔✔a. how people use scarce resources to produce goods
& services
Economics is the study of how people cope with ____________.
a. scarcity.
b. greed.
c. unlimited resources.
d. limited human wants.
e. All of the above. - correct answer ✔✔a. Scarcity
The concept of scarcity as used by economists is _________.
a. a situation in which the available resources are not enough to satisfy the wants of the people.
b. a situation in which an item is very expensive.
c. a situation in which a resource is nonrenewable.
d. shortages.
e. a situation in which an item is available only in very small quantities. - correct answer ✔✔a. a
situation in which the available resources are not enough to satisfy the wants of the people
, A good scarce is when...
a. it is available in limited supply.
b. it is a luxury item.
c. people want more than the amount of the good that is freely available.
d. the amount of the good available exceeds the amount people want.
e. None of the above. - correct answer ✔✔c. people want more than the amount of the good
that is freely available
The problem of scarcity...
a. is not faced by free market economies.
b. is a problem only for poor countries.
c. is a problem only for economies under complete government control.
d. is faced by all economies.
e. is eliminated as the economy grows. - correct answer ✔✔d. is faced by all economies
A resource is not scarce if...
a. its supply exceeds its demand.
b. it has a low opportunity cost.
c. it can be found in any store.
d. people have enough money to pay for it.
e. there is more of this resource than people want. - correct answer ✔✔e. there is more of this
resource than people want
An important implication of scarcity is...
a. people must make a choice.
b. it inhibits economic interaction.
c. it is a problem easily abolished.
