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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online