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Micro Quiz 1

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Submitted By asnye
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Microeconomics: Prin., Apps, & Tools, 8e (O'Sullivan) TB1
Chapter 1 Introduction: What Is Economics?

1.1 What Is Economics?

1) Economics is best defined as the study of:
A) financial decision-making.
B) how consumers make purchasing decisions.
C) the choices made by people faced with scarcity.
D) inflation, unemployment, and economic growth.
Answer: C
Diff: 1
Topic: What Is Economics?
Skill: Definition
AACSB: Reflective Thinking
Learning Outcome: Micro-1

2) Economics is the study of:
A) how to invest in the stock market.
B) how society uses limited resources.
C) the role of money in markets.
D) how government officials decide which goods and services are produced.
Answer: B
Diff: 1
Topic: What Is Economics?
Skill: Conceptual
AACSB: Reflective Thinking
Learning Outcome: Micro-1

3) Scarcity can best be defined as a situation in which:
A) there are no buyers willing to purchase what sellers have produced.
B) there are not enough goods to satisfy all of the buyers' demand.
C) the resources we use to produce goods and services are limited.
D) there is more than enough money to satisfy consumers' wants.
Answer: C
Diff: 1
Topic: What Is Economics?
Skill: Definition
AACSB: Reflective Thinking
Learning Outcome: Micro-1

4) An arrangement that allows buyers and sellers to exchange things is called:
A) a contract.
B) a market.
C) money.
D) efficient.
Answer: B
Diff: 1
Topic: What Is Economics?
Skill: Definition
AACSB: Reflective Thinking
Learning Outcome: Micro-1

5) Because resources are limited:
A) only the very wealthy can get everything they want.
B) firms will be forced out of business.
C) the availability of goods will be limited but the availability of services will not.
D) people must make choices.
Answer: D
Diff: 1
Topic: What Is Economics?
Skill: Conceptual
AACSB: Reflective

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