Test Bank for Issues in Economics
Today, 10th Edition by Robert Guell
**1) Economics is the study of**
A) how much people should buy and the prices they should be willing to pay.
B) how much people should sell and the prices they should be willing to accept.
C) the allocation of the world's freely available resources and who should get them.
D) the allocation and use of scarce resources to satisfy unlimited human wants.
**Correct Answer: D**
**Rationale:** Economics is fundamentally defined as the study of how society allocates scarce
resources to satisfy unlimited human wants. This definition captures the core problem of scarcity and
choice .
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, **2) The one word in the definition of economics that focuses on the fact that it is impossible to provide
all of the goods and services that everyone wants is**
A) scarcity
B) resources
C) study
D) allocation
**Correct Answer: A**
**Rationale:** The concept of scarcity is central to economics—it reflects the fundamental problem
that resources are limited while human wants are unlimited, making it impossible to provide everything
everyone desires .
---
**3) The one word in the definition of economics that focuses on the fact that we have to make choices
about who gets what and how much is**
A) scarcity
B) resources
C) study
D) allocation
**Correct Answer: D**
**Rationale:** Allocation refers to the process of deciding how scarce resources are distributed among
competing uses and who receives the resulting goods and services. This highlights that choices must be
made .
---
Today, 10th Edition by Robert Guell
**1) Economics is the study of**
A) how much people should buy and the prices they should be willing to pay.
B) how much people should sell and the prices they should be willing to accept.
C) the allocation of the world's freely available resources and who should get them.
D) the allocation and use of scarce resources to satisfy unlimited human wants.
**Correct Answer: D**
**Rationale:** Economics is fundamentally defined as the study of how society allocates scarce
resources to satisfy unlimited human wants. This definition captures the core problem of scarcity and
choice .
---
, **2) The one word in the definition of economics that focuses on the fact that it is impossible to provide
all of the goods and services that everyone wants is**
A) scarcity
B) resources
C) study
D) allocation
**Correct Answer: A**
**Rationale:** The concept of scarcity is central to economics—it reflects the fundamental problem
that resources are limited while human wants are unlimited, making it impossible to provide everything
everyone desires .
---
**3) The one word in the definition of economics that focuses on the fact that we have to make choices
about who gets what and how much is**
A) scarcity
B) resources
C) study
D) allocation
**Correct Answer: D**
**Rationale:** Allocation refers to the process of deciding how scarce resources are distributed among
competing uses and who receives the resulting goods and services. This highlights that choices must be
made .
---
