Unit 1 Economics GUELPH

What fundamental fact dominates our lives according to the definition of economics in the text?

• We can get everything we want without any issues.

• We want more than we can get, leading to scarcity.

• Scarcity is a concept that only affects humans.

• Parrots have an unlimited supply of crackers.

Scarcity is described as universal because:

• It only affects students and teachers.

• It is a problem that governments can easily solve.

• It confronts all living things, not just humans.

• It is a concept that is irrelevant in modern economics.

What is the limitation on what you can afford to buy?

• The number of items available in the market.

• Your income and the prices you must pay.

• The amount of time you spend at work.

• The scarcity of natural resources.

What limits the things that only governments can provide?

• The unlimited wants of the people.

• The availability of natural resources.

• The taxes they collect.

• The 24 hours in a day.

What is the main reason we must make choices?

• Because we have unlimited resources

• Because we can't get everything we want

• Because the government requires us to

• Because choices do not need to be consistent with others

What role do incentives play in economics?

• They discourage choices

• They have no impact on choices

• They are a penalty for making choices

• They encourage an action or a choice

What happens if the price of an item is too high?

• More will be offered for sale than people want to buy

• Fewer will be offered for sale than people want to buy

• The government will intervene to adjust the price

• It will have no effect on the market

What does microeconomics study?

• The influence of governments on large scale economic policies

• The choices that individuals and businesses make and how these choices interact in markets

• The overall economic growth and stability of a country

• The environmental impact of economic decisions

What is the study of Macroeconomics concerned with?

• The performance of individual companies and consumer behavior

• The performance of the national economy and the global economy

• The study of biological ecosystems and their impact on trade

• The analysis of historical financial data for future predictions

Which of the following is an example of a macroeconomic question?

• How can a company reduce its production costs?

• What factors influence the demand for smartphones?

• Why does the Canadian unemployment rate fluctuate?

• Which marketing strategy should a retailer use to increase sales?