1. The English word that comes from the Greek word for "one who manages a household" is
a. market.
b. consumer.
c. producer.
d. economy.
ANS: D PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Economy MSC: Definitional
2. The word “economy” comes from the Greek word oikonomos, which means
a. “environment.”
b. “production.”
c. “one who manages a household.”
d. “one who makes decisions.”
ANS: C PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Economy MSC: Definitional
3. Resources are
a. scarce for households but plentiful for economies.
b. plentiful for households but scarce for economies.
c. scarce for households and scarce for economies.
d. plentiful for households and plentiful for economies.
ANS: C PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost
TOP: Resources | Scarcity MSC: Interpretive
4. In considering how to allocate its scarce resources among its various members, a household considers
a. each member’s abilities.
b. each member’s efforts.
c. each member’s desires.
d. all of the above
ANS: D PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost
TOP: Scarcity MSC: Interpretive
5. Economics deals primarily with the concept of
a. scarcity.
b. money.
c. poverty.
d. banking.
ANS: A PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Scarcity MSC: Definitional
6. Which of the following is correct?
a. The word economy comes from the Greek word for “rational thinker.”
b. Economists study the management of scarce resources.
c. Because economists believe that people pursue their best interests, they are not interested in how
people interact.
d. All of the above are correct.
ANS: B PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Economics MSC: Definitional
7. The overriding reason why households and societies face many decisions is that
a. resources are scarce.
b. goods and services are not scarce.
c. incomes fluctuate with business cycles.
d. people, by nature, tend to disagree.
ANS: A PTS: 1 DIF: 2 REF: 1-0
NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost
TOP: Scarcity MSC: Interpretive
8. The phenomenon of scarcity stems from the fact that
a. most economies’ production methods are not very good.
b. in most economies, wealthy people consume disproportionate quantities of goods and services.
c. governments restrict production of too many goods and services.
d. resources are limited.
ANS: D PTS: 1 DIF: 2 REF: 1-0
NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost
TOP: Scarcity MSC: Interpretive
9. Approximately what percentage of the world's economies experience scarcity?
a. 10%
b. 40%
c. 85%
d. 100%
ANS: D PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost
TOP: Scarcity MSC: Interpretive
10. When a society cannot produce all the goods and services people wish to have, it is said that the economy is
experiencing
a. scarcity.
b. surpluses.
c. inefficiencies.
d. inequalities.
ANS: A PTS: 1 DIF: 2 REF: 1-0
NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost
TOP: Scarcity MSC: Interpretive
11. Which of the following products would be considered scarce?
a. automobiles
b. baseballs autographed by Babe Ruth
c. pickles
d. All of the above are correct.
ANS: D PTS: 1 DIF: 2 REF: 1-0
NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost
TOP: Scarcity MSC: Interpretive
12. 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.
ANS: B PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Economies | Scarcity MSC: Definitional
13. 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.
ANS: D PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Resource allocation MSC: Interpretive
14. Oil is considered to be a non-renewable energy source. Oil
a. is an unlimited resource.
b. is a scarce resource.
c. is not a productive resource.
d. has no opportunity cost.
ANS: B PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost
TOP: Scarcity MSC: Applicative
15. Which of the following is not an example of scarcity?
a. Only some people can afford to buy a Ferrari.
b. Every individual in society cannot attain the highest standard of living to which he or she might
aspire.
c. Doug has an unlimited supply of apples in his orchard.
d. Each member of a household cannot get everything he or she wants.
ANS: C PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: Scarcity, tradeoffs, and opportunity cost
TOP: Scarcity MSC: Applicative
16. 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.
ANS: D PTS: 1 DIF: 1 REF: 1-0
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Economics MSC: Interpretive
17. Which of the following is an example of something economists study?
a. Kate chooses to work overtime to earn extra income for her family.
b. Ryan sells his economics textbook from last semester to his roommate for half the price of a new
textbook.
c. The unemployment rate in the United States is at its highest level in over fifty years.
d. All of the above are correct.
ANS: D PTS: 1 DIF: 2 REF: 1-0
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Economics MSC: Interpretive
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £24.49. You're not tied to anything after your purchase.
