ch1 - ch1 Student 1 The central problem of economics is the...

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ch1 Student: ___________________________________________________________________________ 1. The central problem of economics is the: A. Distribution of goods and services to those in need. B. Scarcity of resources relative to human wants. C. Inefficiency of government operations. D. Unemployment of certain factors of production. 2. The primary concern of economics is the study of: A. Why human wants exist and what motivates them. B. How to distribute goods and services according to human needs. C. How best to allocate scarce resources among competing uses. D. Who holds the most political power in a particular country. 3. Which of the following explains why economic choices must be made? A. The factors of production are scarce. B. The factors of production are expensive. C. The factors of production are used inefficiently. D. The factors of production are of inferior quality. 4. The study of economics focuses on: A. The behavior of successful businesses. B. The role of money in our economy. C. How best to allocate scarce resources. D. The elimination of opportunity costs. 5. Which of the following represents a scarce resource? A. Food but not clothing. B. Gasoline but not skilled workers. C. Skilled workers but not clothing. D. Food, clothing, gasoline and skilled workers. 6. Opportunity cost may be defined as the: A. Most desired goods or services that are forgone in order to obtain a particular good. B. Dollar price paid for a final good or service. C. Dollar cost of producing a particular product. D. Dollar cost of the next best alternative resources for producing a good. 7. Given that resources are scarce: A. A "free lunch" is possible but only for a limited number of people. B. Poor countries must make choices but rich countries do not have to make choices. C. Opportunity costs are experienced whenever choices are made. D. Some choices involve opportunity costs while other choices do not. 8. The opportunity cost of playing tennis with your friend is: A. Negative since it's good exercise. B. Zero since you already own the tennis racket and play on a public court. C. The next-best alternative use of your time that is forgone. D. The cost of the tennis lessons you took last year. 9. The concept of opportunity cost would become irrelevant if: A. The market mechanism functioned to allocate resources. B. The government allocated resources. C. The production possibilities curve bowed outward. D. Resources were no longer scarce.
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10. If resources are limited: A. People will rush to buy more goods than they would otherwise. B. Businesses will sell more products than they would otherwise. C. Choices must be made which involve tradeoffs. D. All individuals are deprived of basic necessities. 11. Which of the following are available in limited quantity and contribute to the problem of scarcity?
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This note was uploaded on 01/24/2012 for the course BIOLOGY 1000 taught by Professor Joseph during the Fall '11 term at St. John's.

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ch1 - ch1 Student 1 The central problem of economics is the...

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