Macro Quiz 1

Economics deals primarily with the concept of

Scarcity

In most societies, resources are allocated by

the combined actions of millions of households and firms.

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

100%

Economics is the study of how society manages its: a. unlimited wants and limited resources. Answers: a. unlimited wants and limited resources. b. limited wants and unlimited resources. c. limited wants and limited resources. d. unlimited wants and unlimited resources.

Unlimited wants and limited resources

Which of the following products would be considered scarce? a. bread b. baseballs autographed by Babe Ruth c. motorcycles d. All of the above are correct.

all of the above

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.

all of the above are correct

Which of the following is an example of something economists study? a. Mitch chooses to work overtime to earn extra income for his family. b. Megan sells her physics textbook from last semester to her roommate for half the price of a new textbook. c. The unemployment rate in the United States has fallen by two percentage points in the last few years. d. All of the above are correct.

all of the above are correct

The phenomenon of scarcity stems from the fact that

resources are limited.

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