ECON 202 - LESSON 1

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

100%

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

Coal is a scarce resource.

In considering how to allocate its scarce resources among its various members, a household considers a. each member's abilities. b. each member's efforts. c. each member's desires. d. All of the above are correct.

d. all the above

Which of the following is a decision that economists study?

how much people work what people buy how much money people save

Economics is the study of

how society manages its scarce resources.

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

one who manages a houshold

Resources are

scarce for households and scarce for economies.

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

scarcity

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

scarcity

In most societies, resources are allocated by

the combined actions of millions of households and firms.