SSE- The Definition of Economics

3. Janine is an accountant who makes $30,000 a year. Robert is a college student who makes $8,000 a year. All other things being equal, who is more likely to stand in a long line to get a cheap concert ticket? a. Janine, because her opportunity cost is lower b. Janine, because her opportunity cost is higher c. Robert, because his opportunity cost is lower d. Robert, because his opportunity cost is higher e. Janine, because she is better able to afford the cost of the ticket

Robert, because his opportunity cost is lower

5. The heart of the economic problem is to a. provide for full employment. b. eliminate scarcity. c. increase our standard of living. d. allocate limited resources among unlimited uses. e. increase leisure.

allocate limited resources among unlimited uses

6. Which of the following is considered to be capital by economists? a. stocks b. bonds c. machinery d. money e. finished products

machinery

8. Which of the following should not be considered an opportunity cost of attending college? a. money spent on living expenses that are the same whether or not you attend college b. lost salary c. business lunches d. interest that could have been earned on your money had you put the money into a savings account rather than spent it on tuition e. opportunities sacrificed in the decision to attend college

money spent on living expenses that are the same whether or not you attend college b. lost salary

7. Which of the following do economists call financial capital? a. stocks b. bonds c. money d. all of the above e. only a and b

only a and b

2. Which of the following is not one of the categories of resources? a. land b. labor c. capital d. stocks and bonds e. All of the above are categories of resources.

stocks and bonds

1. If an item is scarce, a. it is not an economic good. b. at a zero price, the amount of the item that people want is less than the amount that is available. c. there is not enough of the item to satisfy everyone who wants it. d. there is enough to satisfy wants even at a zero price. e. it must be a resource as opposed to an input.

there is not enough of the item to satisfy everyone who wants it

4. Economics is the study of the relationship between a. people's unlimited wants and their scarce resources. b. people's limited wants and their scarce resources. c. people's limited wants and their infinite resources. d. people's limited income and their scarce resources. e. human behavior and limited human wants.

people's unlimited wants and their scarce resources