Q1 MS Midterm

What is economics?

• The study of money

• The study of how people choose to use their resources

• The study of businesses

• The study of government spending

Which of the following is NOT an example of a resource in economics?

• Time

• Money

• Attention

• Happiness

What is "The Market" in economic terms?

• A place to buy groceries

• Where people buy and sell goods or services

• A type of financial investment

• A government agency

Which of the following is NOT one of the Four S's of economics?

• Scarcity

• Self-Interest

• Subjective Value

• Supply and Demand

What does scarcity mean in economics?

• The gap between limited resources and wants/needs

• When something is very expensive

• When the government runs out of money

What is the difference between self-interest and being selfish?

• There is no difference

• Self-interest benefits others, while being selfish doesn't

• Self-interest is illegal, but being selfish is not

• Self-interest is about money, while being selfish is about time

What does subjective value mean?

• Everything has the same value to everyone

• Only expensive things have value

What are sunk costs?

• Money spent on submarines

• Costs that only apply to businesses

• Spent resources that you can't get back

What is comparative advantage?

• When you're better at everything than everyone else

• When you focus on what you're best at doing

• When you can buy things cheaper than others

• When you have more money than others

What is the main focus of all marketing efforts?

• Products

• Employees

• Customers

• Profits