Introduction to Economics

Which of the following is an example of doing without something as a solution to scarcity?

• Buying more than needed

• Using alternatives

• Consuming excessively

• Ignoring needs

What is the primary focus of economics?

• The study of market trends

• The study of government policies

• The study of choices made when resources are limited

• The study of wealth distribution

What does the Principle of Opportunity Cost refer to?

• The cost of producing goods

• The cost of an alternative that must be forgone

• The cost of variable expenses

• The cost of fixed expenses

What is the definition of Utility in economics?

• The amount of goods produced

• The total revenue generated

• The capacity of a commodity to satisfy human wants

• The total cost of production

What does the Law of Demand state?

• As price decreases, demand decreases

• As price increases, demand increases

• As price increases, demand decreases

• As price remains constant, demand fluctuates

What does the term 'Scarcity' refer to in economics?

• The high demand for goods

• The abundance of resources

• The surplus of goods in the market

• The limited availability of resources

What does the Law of Supply state?

• As price increases, demand decreases

• As price increases, supply increases

• As price increases, supply decreases

• As price decreases, demand increases

What is the effect of Competition in a market?

• It encourages innovation and drives down prices

• It leads to less innovation

• It creates monopolies

• It drives prices up

What are Fixed Costs?

• Costs that are associated with variable expenses

• Costs that vary with production levels

• Costs that remain constant regardless of production

• Costs that are incurred only during peak seasons

What is the main theme of the book 'Introduction to Economics'?

• The impact of technology on society

• The principles of economic theory

• The history of economic thought

• The role of government in the economy