CHAPTER 2 - CHAPTER 2 1 The study of economics exists...

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CHAPTER 2 1. The study of economics exists because: A) government interferes with the efficient allocation of scarce resources. B) resources are scarce in relation to human material wants. C) the market system is an obstacle to the efficient use of plentiful resources to satisfy constrained wants. D) resources are overly abundant as compared to wants; thus, an allocation problem exists. Ans: B 2. The scarcity problem: A) persists only because countries have failed to achieve continuous full employment. B) persists because material wants exceed available productive resources. C) has been solved in all industrialized nations. D) has been eliminated in affluent societies such as the United States and Canada. Ans: B 3. Economic resources are also called: A) free gifts of nature. B) consumption goods. C) units of money capital. D) factors of production. Ans: D 4. Which of the following will not entail an outward shift of the production possibilities curve? A) an upgrading of the quality of a nation's human resources
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This note was uploaded on 10/15/2009 for the course ECON 2302 taught by Professor Parker during the Spring '09 term at University of Texas-Tyler.

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CHAPTER 2 - CHAPTER 2 1 The study of economics exists...

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