ECON 101 EXAM 1 ISU QUESTIONS
COMPLETE WITH VERIFIED
ANSWERS
\.The basic concern of microeconomics is:
A) to keep business firms from losing money.
B) to prove that capitalism is better than socialism.
C) to study the choices people make.
D) to use unlimited resources to produce goods and services to satisfy limited
wants. - ANSWERS✔-C) to study the choices people make
\.How people choose among the alternatives available to them is:
A) not part of the study of economics.
B) impossible to describe.
C) the study of microeconomics.
D) not important in the study of microeconomics. - ANSWERS✔-C) the study of
microeconomics.
\.A key theme fundamental to all of economics is that:
A) wants are limited.
B) the United States is a rich country, but we are simply not aware of it.
C) people have unlimited wants but limited means to satisfy them.
, D) resources are unlimited. - ANSWERS✔-C) people have unlimited wants but
limited means to satisfy them.
\.We are forced to make choices because of:
A) exploitation.
B) efficiency.
C) scarcity.
D) the margin. - ANSWERS✔-C) scarcity.
\.A resource is anything that:
A) can be used in production.
B) you pay for.
C) is in scarce supply.
D) can be consumed. - ANSWERS✔-A) can be used in production.
\.Which of the following is NOT a resource in the production of rice?
A) fertile land
B) labor
C) capital equipment
D) money - ANSWERS✔-D) money
\.When a chef prepares a dinner for a customer, which of the following is physical
capital?
COMPLETE WITH VERIFIED
ANSWERS
\.The basic concern of microeconomics is:
A) to keep business firms from losing money.
B) to prove that capitalism is better than socialism.
C) to study the choices people make.
D) to use unlimited resources to produce goods and services to satisfy limited
wants. - ANSWERS✔-C) to study the choices people make
\.How people choose among the alternatives available to them is:
A) not part of the study of economics.
B) impossible to describe.
C) the study of microeconomics.
D) not important in the study of microeconomics. - ANSWERS✔-C) the study of
microeconomics.
\.A key theme fundamental to all of economics is that:
A) wants are limited.
B) the United States is a rich country, but we are simply not aware of it.
C) people have unlimited wants but limited means to satisfy them.
, D) resources are unlimited. - ANSWERS✔-C) people have unlimited wants but
limited means to satisfy them.
\.We are forced to make choices because of:
A) exploitation.
B) efficiency.
C) scarcity.
D) the margin. - ANSWERS✔-C) scarcity.
\.A resource is anything that:
A) can be used in production.
B) you pay for.
C) is in scarce supply.
D) can be consumed. - ANSWERS✔-A) can be used in production.
\.Which of the following is NOT a resource in the production of rice?
A) fertile land
B) labor
C) capital equipment
D) money - ANSWERS✔-D) money
\.When a chef prepares a dinner for a customer, which of the following is physical
capital?
