Chapter 1--The Art and Scie - Chapter 1-The Art and Science...

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Chapter 1--The Art and Science of Economic Analysis Student: ___________________________________________________________________________ 1. Economics is best defined as the study of how individuals decide to use limited resources in an attempt to satisfy unlimited wants. A. True B. False 2. Economics studies how decision makers use scarce resources to satisfy unlimited wants. A. True B. False 3. In economics, money is an example of capital. A. True B. False 4. Profit is the payment received by resource owners for the use of their capital. A. True B. False 5. Rent is the payment received by resource owners for the use of their natural resources. A. True B. False 6. The fact that people have unlimited wants means that A. they always want more of at least one good B. each person has an unlimited desire for every good C. labor unions demand wage increases D. selfish people are not concerned about others E. people buy goods without regard to what they can afford
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7. The problem of scarce resources 8. Scarcity is best defined as 9. Scarcity 10. Because people's wants are unlimited but resources are scarce, A. only the rich get everything they want B. choices must be made C. there will be more services produced than goods D. people search for spiritual fulfillment rather than material fulfillment E. poor people never get anything they want 11. Which of the following statements regarding the basic economic problem of scarcity is correct?
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  • Spring '11
  • Mr.Benson
  • Economics, d., c., E.

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