Premium Essay

Econ Ch.1

In: Business and Management

Submitted By kary0316
Words 727
Pages 3
Chapter 01 Limits, Alternatives, and Choice

Multiple Choice

[QUESTION]
1. Economics is a social science that studies how individuals, institutions, and society may:
A) Expand the amount of productive resources available to them
B) Attain a minimum level of unemployment
C) Best use scarce resources to achieve the maximum satisfaction of economic wants
D) Reduce the prices of goods and services to consumers
Answer: C
Topic: The Economic Perspective
Difficulty: 2 Medium
Learning Objective: 01-01
Bloom’s: Level 1 Remember
AACSB: Analytic

[QUESTION]
2. The key economic concept that serves as the basis for the study of economics is:
A) Inflation
B) Unemployment
C) Money
D) Scarcity
Answer: D
Topic: The Economic Perspective
Difficulty: 2 Medium
Learning Objective: 01-01
Bloom’s: Level 1 Remember
AACSB: Analytic

[QUESTION]
3. A recurring theme in economics is that people:
A) Have unlimited resources, but limited economic wants
B) Can increase resources by limiting their economic wants
C) Have limited economic wants and limited resources
D) Have unlimited economic wants, but limited resources
Answer: D
Topic: The Economic Perspective
Difficulty: 1 Easy
Learning Objective: 01-01
Bloom’s: Level 1 Remember
AACSB: Analytic

[QUESTION]
4. As a consequence of the problem of scarcity:
A) There is never enough of anything
B) Individuals have to make choices from among alternatives
C) Production has to be planned by government
D) Things which are plentiful have relatively high prices
Answer: B
Topic: The Economic Perspective
Difficulty: 1 Easy
Learning Objective: 01-01
Bloom’s: Level 1 Remember
AACSB: Analytic

[QUESTION]
5. What is the economic meaning of the expression that "there is no such thing as a free lunch"?
A) It means that scarce resources are used up to provide freebies and giveaways
B) It means that

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