EC 111 Chapter 1 Cengage Quiz
Questions & answers rated A+
2025/2026
The economic problem of _____ arises because human wants and desires are unlimited and the
means to satisfy these wants are limited.
a. inflation
b. unemployment
c. recession
d. scarcity - correct answer ✔✔d. scarcity
Economics is a branch of social science that studies:
a. how people choose to allocate limited resources to satisfy their unlimited wants.
b. human behavior by establishing general principles and researching specific cases.
c. how information derived from sensory experience can be interpreted through mathematical
treatments.
d. social processes such as conflict, cooperation, and identity formation. - correct answer ✔✔a.
how people choose to allocate limited resources to satisfy their unlimited wants.
_____ due to the scarcity of resources.
a. People cannot satisfy all their wants
b. There is a lack of consumer sovereignty
c. The marginal cost of an action always exceeds its marginal benefit
d. The marginal benefit from an action always exceeds its marginal cost - correct answer ✔✔a.
People cannot satisfy all their wants
, Identify the correct statement about economic choice.
a. Economic choice arises due to imperfect information in product markets.
b. The need for economic choice arises from scarcity of resources.
c. The need for economic choice arises from limited human wants.
d. Economic choice arises due to imperfect information in resource markets. - correct answer
✔✔b. The need for economic choice arises from scarcity of resources.
Which of the following is an example of physical capital?
a. A person's ability to organize the productive resources and manage a business enterprise.
b. A person's physical and mental effort employed to produce goods and services.
c. A taxi driver's knowledge of city streets.
d. A computer used by a company to record its inventory, sales, and payroll. - correct answer
✔✔d. A computer used by a company to record its inventory, sales, and payroll.
Which of the following is an example of entrepreneurship?
a. A person's skills and abilities that can be employed to produce valuable goods and services.
b. Computers used by a company to record inventory, sales, and payroll.
c. A person's ability to organize the factors of production and manage a business enterprise.
d. Seams of coal, geologic strata containing oil, groundwater basins, and marine fisheries. -
correct answer ✔✔c. A person's ability to organize the factors of production and manage a
business enterprise.
_____ is a payment to resource owners for the use of their capital.
a. Rent
b. Interest
c. Profit
d. Wage - correct answer ✔✔b. Interest
Questions & answers rated A+
2025/2026
The economic problem of _____ arises because human wants and desires are unlimited and the
means to satisfy these wants are limited.
a. inflation
b. unemployment
c. recession
d. scarcity - correct answer ✔✔d. scarcity
Economics is a branch of social science that studies:
a. how people choose to allocate limited resources to satisfy their unlimited wants.
b. human behavior by establishing general principles and researching specific cases.
c. how information derived from sensory experience can be interpreted through mathematical
treatments.
d. social processes such as conflict, cooperation, and identity formation. - correct answer ✔✔a.
how people choose to allocate limited resources to satisfy their unlimited wants.
_____ due to the scarcity of resources.
a. People cannot satisfy all their wants
b. There is a lack of consumer sovereignty
c. The marginal cost of an action always exceeds its marginal benefit
d. The marginal benefit from an action always exceeds its marginal cost - correct answer ✔✔a.
People cannot satisfy all their wants
, Identify the correct statement about economic choice.
a. Economic choice arises due to imperfect information in product markets.
b. The need for economic choice arises from scarcity of resources.
c. The need for economic choice arises from limited human wants.
d. Economic choice arises due to imperfect information in resource markets. - correct answer
✔✔b. The need for economic choice arises from scarcity of resources.
Which of the following is an example of physical capital?
a. A person's ability to organize the productive resources and manage a business enterprise.
b. A person's physical and mental effort employed to produce goods and services.
c. A taxi driver's knowledge of city streets.
d. A computer used by a company to record its inventory, sales, and payroll. - correct answer
✔✔d. A computer used by a company to record its inventory, sales, and payroll.
Which of the following is an example of entrepreneurship?
a. A person's skills and abilities that can be employed to produce valuable goods and services.
b. Computers used by a company to record inventory, sales, and payroll.
c. A person's ability to organize the factors of production and manage a business enterprise.
d. Seams of coal, geologic strata containing oil, groundwater basins, and marine fisheries. -
correct answer ✔✔c. A person's ability to organize the factors of production and manage a
business enterprise.
_____ is a payment to resource owners for the use of their capital.
a. Rent
b. Interest
c. Profit
d. Wage - correct answer ✔✔b. Interest
