Question 1

The word "economy" comes from the Greek word oikonomos,which means

Accepted Answer

A)  "environment."
B)  "production."
C)  "one who manages a household."
D)  "one who makes decisions."E) A) and B)
F) B) and C)

Question 2

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

Accepted Answer

A)  inefficiency
B)  inequality
C)  scarcity
D)  market failureE) None of the above
F) A) and B)

Question 3

The English word that comes from the Greek word for "one who manages a household" is

Accepted Answer

A)  market.
B)  consumer.
C)  producer.
D)  economy.E) B) and C)
F) A) and D) D

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?

Accepted Answer

A)  ​wind power
B)  ​solar energy
C)  ​fossil fuel
D)  ​hydro-powerE) B) and C)
F) C) and D)

Question 5

Which of the following is a subject that economists study?

Accepted Answer

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.E) All of the above
F) B) and C)

Question 6

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

Accepted Answer

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.E) None of the above
F) B) and C)

Question 7

Which of the following products would be considered scarce?

Accepted Answer

A)  bread
B)  baseballs autographed by Babe Ruth
C)  motorcycles
D)  All of the above are correct.E) All of the above
F) C) and D)

Question 8

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

Accepted Answer

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.E) C) and D)
F) B) and D)

Question 9

A society allocates its scarce resources to various uses.These scarce resources include

Accepted Answer

A)  land.
B)  people.
C)  machines.
D)  All of the above are correct.E) B) and D)
F) C) and D)

Question 10

In the broadest sense,economics is the study of

Accepted Answer

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.E) A) and D)
F) All of the above

Question 11

Economics is the study of how society manages its

Accepted Answer

A)  limited wants and unlimited resources.
B)  unlimited wants and unlimited resources.
C)  limited wants and limited resources.
D)  unlimited wants and limited resources.E) None of the above
F) A) and B)

Question 12

In most societies,resources are allocated by

Accepted Answer

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.E) C) and D)
F) A) and D) D

Question 13

Which of the following is not subject to scarcity?​

Accepted Answer

A)  ​water
B)  ​steel
C)  ​diamonds
D)  none of the aboveE) B) and C)
F) A) and C)

Question 14

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

Accepted Answer

A)  10%
B)  40%
C)  85%
D)  100%E) B) and C)
F) A) and D) D

Question 15

Fundamentally,economics deals with

Accepted Answer

A)  scarcity.
B)  money.
C)  poverty.
D)  banking.E) B) and C)
F) A) and D)

Question 16

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

Accepted Answer

A)  environmental studies
B)  economics
C)  management
D)  accountingE) All of the above
F) B) and D)

Question 17

Which of the following is correct?

Accepted Answer

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.E) None of the above
F) C) and D)

Question 18

The phenomenon of scarcity stems from the fact that

Accepted Answer

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.E) A) and B)
F) B) and C)

Question 19

Which of the following is not an example of scarcity?

Accepted Answer

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.E) A) and C)
F) B) and C)

Question 20

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

Accepted Answer

A)  scarcity.
B)  surpluses.
C)  inefficiencies.
D)  inequalities.E) A) and B)
F) A) and C)

Exam 1: Ten Principles of Economics

The word "economy" comes from the Greek word oikonomos,which means

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The English word that comes from the Greek word for "one who manages a household" is

Correct AnswerverifiedD

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?

Correct AnswerverifiedShow Answer

Which of the following is a subject that economists study?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following products would be considered scarce?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A society allocates its scarce resources to various uses.These scarce resources include

Correct AnswerverifiedShow Answer

In the broadest sense,economics is the study of

Correct AnswerverifiedShow Answer

Economics is the study of how society manages its

Correct AnswerverifiedShow Answer

In most societies,resources are allocated by

Correct AnswerverifiedD

Which of the following is not subject to scarcity?​

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

Correct AnswerverifiedD

Fundamentally,economics deals with

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

The phenomenon of scarcity stems from the fact that

Correct AnswerverifiedShow Answer

Which of the following is not an example of scarcity?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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D

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D

Which of the following is not subject to scarcity?

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D

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