ECON 2100: Global
Economics Sample Practice
Exam 1 with complete
verified solutions
1. Which statement most accurately describes economics?
A) Economics is the study of how people make money.
B) Economics is the study of how people make choices to satisfy their wants.
C) Economics is the study of social values a society should choose.
D) Economics is the study of how to eliminate scarcity. - answer B)
Economics is the study of how people make choices to satisfy their wants.
1. Scarcity refers to
A) a shortage in a good or service.
B) the ability of society to consume all that it produces.
C) the inability of society to satisfy all human wants because of limited
resources.
D) the inability of an individual to purchase a good or service due to her
limited income. - answer C) the inability of society to satisfy all human wants
because of limited resources.
1. Macroeconomics primarily examines:
A) The behavior of individual households and firms.
B) How prices are determined within individual markets.
C) broad issues such as national output, employment and inflation.
D) The output levels that maximize the profits of business firms - answer C)
broad issues such as national output, employment and inflation.
, 1. Which of the following are considered factors of production?
I. Land
II. Labor
III. Physical capital
IV. Entrepreneurship
A) I and II only
B) I and III only
C) I, II and III only
D) I, II, III and IV - answer C) I, II and III only
1. Macroeconomics deals with ________ while microeconomics deals with
________.
A) choices important to people; choices not important to people
B) economywide choices; choices of individuals
C) choices that involve money; choices that does not involve money
D) choices of rich people; choices of poor people - answer B) economywide
choices; choices of individuals
1. What is the type of mechanism that answers the basic economic questions
through a decentralized decision-making process?
A) market system
B) dictatorship
C) command and control
D) mixed economic system - answer A) market system
1. A simplified representation of the real world that is used to explain
economic phenomena is a(n)
A) viewpoint.
Economics Sample Practice
Exam 1 with complete
verified solutions
1. Which statement most accurately describes economics?
A) Economics is the study of how people make money.
B) Economics is the study of how people make choices to satisfy their wants.
C) Economics is the study of social values a society should choose.
D) Economics is the study of how to eliminate scarcity. - answer B)
Economics is the study of how people make choices to satisfy their wants.
1. Scarcity refers to
A) a shortage in a good or service.
B) the ability of society to consume all that it produces.
C) the inability of society to satisfy all human wants because of limited
resources.
D) the inability of an individual to purchase a good or service due to her
limited income. - answer C) the inability of society to satisfy all human wants
because of limited resources.
1. Macroeconomics primarily examines:
A) The behavior of individual households and firms.
B) How prices are determined within individual markets.
C) broad issues such as national output, employment and inflation.
D) The output levels that maximize the profits of business firms - answer C)
broad issues such as national output, employment and inflation.
, 1. Which of the following are considered factors of production?
I. Land
II. Labor
III. Physical capital
IV. Entrepreneurship
A) I and II only
B) I and III only
C) I, II and III only
D) I, II, III and IV - answer C) I, II and III only
1. Macroeconomics deals with ________ while microeconomics deals with
________.
A) choices important to people; choices not important to people
B) economywide choices; choices of individuals
C) choices that involve money; choices that does not involve money
D) choices of rich people; choices of poor people - answer B) economywide
choices; choices of individuals
1. What is the type of mechanism that answers the basic economic questions
through a decentralized decision-making process?
A) market system
B) dictatorship
C) command and control
D) mixed economic system - answer A) market system
1. A simplified representation of the real world that is used to explain
economic phenomena is a(n)
A) viewpoint.
