Economics 1

What is the end goal of economics?

• To create policies for the government

• To serve as a check on the resources available for consumption

• To satisfy the unlimited material wants of the society

• To ensure that nobody gets hungry in the society

Which of the following is the best definition of opportunity costs?

• The price of a good that must be charged in order for a merchant to sell one more unit

• The amount of one good that must be given up in order to produce one more unit of another good

• The amount of an input that must be used in order to produce one more unit of a good

• The amount of money that must be paid in order to purchase one more unit of a good

Microeconomics is not concerned with:

• The distribution of goods among households

• The size of aggregate money flows in the economy

• The quantities of each good produced

• The allocative function of changes in relative price

All of the following basic economic questions deal with microeconomics except:

• How are goods and services being produced?

• Is the economy's capacity to produce goods growing over time?

• What goods and services are being produced and in what quantities?

• For whom are the goods and services produced?

According to Walstad and Bingham, what Social Science is concerned with the use of scarce resources to obtain the maximum satisfaction of the unlimited wants of the society?

• economics

• geography

• history

• scarcity

What economic condition shows most things that people want are available only in very limited supply?

• loss

• scarcity

• all of these terms apply

• shortage

What economic resources pertain to all the natural resources found above or below the soil that could include lands used for agricultural and industrial purposes?

• entrepreneurial abilities

• capital

• labor resources

• land resources

In an economy, when all economic decisions are done without government intervention, competition served as determinant to identify the needs of the society and competition will determine who will survive in the market, what economic system will likely be in effect in that economy?

• communism

• socialism

• mixed economy

• capitalism

Economically, what refers to a place where the buyers (consumers) and sellers (producers) meet to agree on the procurement of goods and services?

• Store

• Talipapa

• Market

• Grocery

What is a market situation in which the market price has reached the level at which quantity supplied equals quantity demanded?

• ceteris paribus

• equilibrium

• Price stability

• disequilibrium