Applied_Econ_01_01

What is the primary focus of economics?

• The study of governments

• The study of technology

• The study of human behavior in relation to resources

• The study of business strategies

The study of economics helps individuals to:

• Learn how to avoid making decisions

• Make informed decisions about resource allocation

• Ignore the importance of resources

• Create political parties

Which of the following statements is true about economics?

• It assumes unlimited resources are available

• It focuses solely on wealth creation

• It deals with the problem of scarcity

• It has no impact on public policy

Economics is came from the Greek words __________ which means household management.

• Oikonomiks

• Oikonomia

• Oikonumikos

• Okonomika

The concept of scarcity in economics leads to:

• Economic equilibrium

• The need for government regulation

• The necessity of making choices

• Unchanging resource allocation

Which of the following is an example of a scarce resource?

• Clean drinking water

• Sunlight

• Ocean tides

• Stars in the sky

Why do all societies face the problem of scarcity?

• Because they have infinite resources

• Because human have unlimited wants and needs

• Because all goods are renewable

• Because resources are not useful

Which of the following is not one of the fundamental economic questions?

• What to produce?

• How to produce?

• Where to produce?

• For whom to produce?

The question "What to produce?" addresses:

• The technology to be used in production

• The goods and services that should be produced

• The allocation of resources for production

• The distribution of goods and services

The question "How to produce?" is concerned with:

• The types of goods to be produced

• The methods and resources used in production

• The people who will receive the products

• The location of production facilities