Saylor Academy ECON101: Direct Credit
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
Q: Why does scarcity exist? Resources are limited.
Which of the following is the most Scarcity
fundamental concept in
economics?
The Greek word for "economy" is manages a household.
oikonomos, which literally means a
person who:
What does the term "capital" refer The equipment, and buildings used by
to firms
in economics?
,According to the production It is an impossible goal because there are
possibility frontier below, the too few
economy of this country can resources.
produce 50 boats and 25 cars
(point
Z). For strategic reasons the
government would like to produce
45 boats and 35 cars (point Y).
What
advice would you give to the
government of this country?
IMAGE
Equality and efficiency are both Equality refers to a uniform distribution of
terms used to judge economic economic benefits, while efficiency refers
outcomes. Although they share to a
similarities in meaning, they are maximization of economic benefits.
different in which of the following
ways?
A firm has the lowest opportunity gives up the least to make the product.
cost to produce a product when it:
In the circular flow model, what are The main groups of actors are households
the two main groups of actors in and
the firms, and the two markets are the
economy? What are the two goods/services
markets market and the market for the factors of
that make up the economy? production.
, Suppose that baristas at a coffee The supply of coffee will shift to the left.
shop currently earn the legal
minimum wage. What is likely to
happen if the minimum wage
increases to $15 an hour?
Hops is an input in the production The demand for hops will decrease.
of
beer. The demand for beer is
declining. How will this affect
hops?
The supply of a good is sellers of the good present in the market
determined
by:
Some of the determinants of price, price of compliments and
demand are: tastes/preferences.
If producers of a certain product -TRY This expectation will affect future
are supply but
pessimistic or uncertain about the not today's supply
future business climate, how will -NOT This expectation will cause
the movement along
supply of the product behave? the supply curve.
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
Q: Why does scarcity exist? Resources are limited.
Which of the following is the most Scarcity
fundamental concept in
economics?
The Greek word for "economy" is manages a household.
oikonomos, which literally means a
person who:
What does the term "capital" refer The equipment, and buildings used by
to firms
in economics?
,According to the production It is an impossible goal because there are
possibility frontier below, the too few
economy of this country can resources.
produce 50 boats and 25 cars
(point
Z). For strategic reasons the
government would like to produce
45 boats and 35 cars (point Y).
What
advice would you give to the
government of this country?
IMAGE
Equality and efficiency are both Equality refers to a uniform distribution of
terms used to judge economic economic benefits, while efficiency refers
outcomes. Although they share to a
similarities in meaning, they are maximization of economic benefits.
different in which of the following
ways?
A firm has the lowest opportunity gives up the least to make the product.
cost to produce a product when it:
In the circular flow model, what are The main groups of actors are households
the two main groups of actors in and
the firms, and the two markets are the
economy? What are the two goods/services
markets market and the market for the factors of
that make up the economy? production.
, Suppose that baristas at a coffee The supply of coffee will shift to the left.
shop currently earn the legal
minimum wage. What is likely to
happen if the minimum wage
increases to $15 an hour?
Hops is an input in the production The demand for hops will decrease.
of
beer. The demand for beer is
declining. How will this affect
hops?
The supply of a good is sellers of the good present in the market
determined
by:
Some of the determinants of price, price of compliments and
demand are: tastes/preferences.
If producers of a certain product -TRY This expectation will affect future
are supply but
pessimistic or uncertain about the not today's supply
future business climate, how will -NOT This expectation will cause
the movement along
supply of the product behave? the supply curve.
