Question 1

The study of how society manages its scarce resources is most closely associated with which field of study?
A)environmental studies
B)economics
C)management
D)accounting

Accepted Answer

The study of how society manages its scarce resources is the fundamental concept of economics. The other options (environmental studies, management, and accounting) do not specifically focus on the allocation of scarce resources in society.

Question 2

In most societies, resources are allocated by
A)a single central planner.
B)a small number of central planners.
C)those firms that use resources to provide goods and services.
D)the combined actions of millions of households and firms.

Accepted Answer

In market economies, resources are allocated through the combined actions of households and firms. In these economies, prices act as signals for resource allocation, based on the willingness and ability of households to pay for goods and services and firms' decisions on how to use resources to maximize profit. Central planning systems, as described in choices A and B, have largely been replaced by market economies in recent decades.

Question 3

Which of the following is not an example of scarcity?
A)Only some people can afford to buy a BMW automobile.
B)Every individual in society cannot attain the highest standard of living to which he or she might aspire.
C)Miranda has more oranges in her orchard than she will ever use.
D)Each member of a household cannot get everything he or she wants.

Accepted Answer

Scarcity refers to a situation where there are limited resources and unlimited wants. In this case, Miranda has more oranges than she will ever use, so there is no scarcity of oranges for her. The other options all involve situations where there are limited resources relative to unlimited wants or needs, which is the definition of scarcity.

Question 4

A variety of fuels can be used to generate electricity. Considering only the availability of the fuel and not the cost of converting it into electricity, which of the following fuels is most scarce?
A)​wind power
B)​solar energy
C)​fossil fuel
D)​hydro-power

Accepted Answer

Fossil fuels are the most scarce among the given options as they are non-renewable and finite resources, while wind power, solar energy and hydro-power can be harnessed indefinitely without the risk of depletion.

Question 5

Which of the following is a decision that economists study?
A)how much people work
B)what people buy
C)how much money people save
D)All of the above are correct.

Accepted Answer

Economists study all of the above decisions, as they are all related to economic behavior and can have an impact on the economy as a whole. The choices people make regarding work, consumption, and saving can have effects on employment levels, markets, and overall economic growth.

Question 6

Approximately what percentage of the world's economies experience scarcity?
A)10%
B)40%
C)85%
D)100%

Accepted Answer

Scarcity is a fundamental concept in economics that exists in all economies, regardless of their level of development or economic system. Therefore, all economies in the world experience scarcity, making the correct answer D - 100%.

Question 7

Which of the following is an example of something economists study?
A)Mitch chooses to work overtime to earn extra income for his family.
B)Megan sells her physics textbook from last semester to her roommate for half the price of a new textbook.
C)The unemployment rate in the United States has fallen by two percentage points in the last few years.
D)All of the above are correct.

Accepted Answer

Economists study a wide range of topics related to people's decisions about money, markets, and resources, as well as broader economic trends and policies. All of the examples listed involve economic decision-making or trends.

Question 8

Coal is considered to be a non-renewable energy source. Which of the following statements is correct?
A)Coal is an unlimited resource.
B)Coal is a scarce resource.
C)Coal is a non-scarce resource.
D)Coal is not a resource.

Accepted Answer

Coal is considered a non-renewable energy source because it takes millions of years to form and cannot be replenished in a short amount of time. While there may be large reserves of coal in some areas, it is still considered a scarce resource because it takes a significant amount of time, effort, and resources to extract it.

Question 9

Economics is the study of how society manages its
A)limited wants and unlimited resources.
B)unlimited wants and unlimited resources.
C)limited wants and limited resources.
D)unlimited wants and limited resources.

Accepted Answer

Economics is concerned with how society allocates its scarce resources to satisfy unlimited wants, highlighting the fundamental problem of scarcity.

Question 10

What term refers to the idea that society has limited resources and therefore cannot produce all the goods and services people wish to have?
A)inefficiency
B)inequality
C)scarcity
D)market failure

Accepted Answer

Scarcity refers to the idea that there are limited resources in society, meaning that it is impossible to produce an infinite amount of goods and services. This creates a need for individuals, businesses and governments to make choices about what goods and services to prioritize and allocate resources towards.

Question 11

Which of the following products would be considered scarce?
A)bread
B)baseballs autographed by Babe Ruth
C)motorcycles
D)All of the above are correct.

Accepted Answer

The answer of Which of the following products would be...

Question 12

Which of the following is a subject that economists study?
A)the growth in average income
B)the fraction of the population that cannot find work
C)the rate at which prices are rising
D)All of the above are correct.

Accepted Answer

Economists study a wide range of topics, including the growth in average income (A), the fraction of the population that cannot find work (B), and the rate at which prices are rising (C). Therefore, all of the above options are correct (D).

Question 13

In the broadest sense, economics is the study of
A)production methods.
B)how society manages its scarce resources.
C)how households decide who performs which tasks.
D)the interaction of business and government.

Accepted Answer

Economics is the study of how society manages its scarce resources. This includes how individuals, businesses, and governments allocate resources to produce goods and services that meet their needs and wants.

Question 14

When a society cannot produce all the goods and services people wish to have, the economy is experiencing
A)scarcity.
B)surpluses.
C)inefficiencies.
D)inequalities.

Accepted Answer

Scarcity is the fundamental economic problem of having unlimited wants and needs with limited resources. If a society cannot produce all the goods and services people wish to have, then it means there is a scarcity of resources, which is the root cause of all economic problems. Surpluses (B) indicate an excess supply of goods and services, which is not the situation described. Inefficiencies (C) refer to the situation where the resources are not utilized in the most productive way possible, which is not the case described. Inequalities (D) refer to disparities in income, wealth or opportunities, which is not the situation described.

Question 15

Which of the following is not subject to scarcity?​
A)​water
B)​steel
C)​diamonds
D)none of the above

Accepted Answer

The answer of Which of the following is not subject...

Quiz 1: Ten Principles of Economics

The study of how society manages its scarce resources is most closely associated with which field of study?

In most societies, resources are allocated by

Which of the following is not an example of scarcity?

A variety of fuels can be used to generate electricity. Considering only the availability of the fuel and not the cost of converting it into electricity, which of the following fuels is most scarce?

Which of the following is a decision that economists study?

Approximately what percentage of the world's economies experience scarcity?

Which of the following is an example of something economists study?

Coal is considered to be a non-renewable energy source. Which of the following statements is correct?

Economics is the study of how society manages its

What term refers to the idea that society has limited resources and therefore cannot produce all the goods and services people wish to have?

Which of the following products would be considered scarce?

Which of the following is a subject that economists study?

In the broadest sense, economics is the study of

When a society cannot produce all the goods and services people wish to have, the economy is experiencing

Which of the following is not subject to scarcity?​

Which of the following is not subject to scarcity?